Annual Tax Return Preparation
Quarterly and Annual Tax Filings
Every business and almost every citizen must file at least one annual tax form with the IRS, and many also have filings with their state’s department of revenue. Additionally, foreign businesses operating in the U.S. often have specific tax filing requirements. Timely and accurate submissions to these organizations reduce costs, avoid penalties and interest, and prevent unexpected issues from missed filings.
Depending on the form, tax returns are required quarterly or annually. All entities and individuals with tax liabilities must complete these returns, and prompt filing is crucial to maintaining compliance with both the IRS and your state. We expertly handle tax returns across all 50 states, the District of Columbia, and for foreign businesses operating within the U.S.
Most Common Tax Returns
Different Entities Need Different Forms
- S-Corporations (1120S Tax Returns)
- Partnerships & Multimember LLCs (1065 Tax Returns)
- C-Corporations (1120 Tax Returns)
- Individual Returns (1040 Tax Returns)
- Estate Trust Returns (1041 Tax Returns)
- Individual Non-Resident Returns (1040NR Tax Returns)
Tax returns themselves are straight-forward if your records are in order. As a result, we offer combination bookkeeping/tax return packages where we stay on top of your books all year and file your return at year end. For others that do their own accounting, we file returns and plan a mid-year strategy session to keep you on track. If you only look at your financials and tax situation annually, you may be passing up tax credits, tax deductions, or better business decisions.
Business Tax Filings
Compliance for All Sized Businesses
Businesses fall into three basic categories from a tax perspective: sole proprietorships, partnerships, and corporations. The legal entities vary from state to state, and increasingly firms are organized as LLCs (Limited Liability Companies), but ultimately your business will have to file under one of those three categories.
Annual Federal and State returns for corporations, small businesses, and business owners. Make certain your 1040, 1120S, 1120, 1065, or 1099s are completed on time, accurately, and in compliance with IRS regulations.
Corporate Tax Filings
Tax Accounting for Corporations
Corporations have been part of America since the Colonial era, designed to distinguish between their owners (shareholders), management (officers), and employees. Originally the sole form of limited liability, corporations are now one of several business structures available. In the U.S., corporations are categorized as either S-Corporations or C-Corporations.
Most small, owner-operated businesses choose S-Corporations, which are ‘pass-through entities.’ In contrast, public companies, those with external investors, and foreign-owned corporations typically opt for C-Corporations. Each type is responsible for its own tax filings.
C-Corporation Tax Returns
Traditional Corporation Taxes
C-Corporations, the default corporate status, files a form 1120 annually, the corporate tax return. The corporation is responsible for taxes on it’s income. These rates vary over time based on congressional action, but are distinct from those of the owners. C-Corporations may retain their earnings to reinvest, or pass them to their shareholders, who pay taxes on them based on the information provided in 1099-DIV. C-Corporations have the advantage of isolating the owners from business, and the drawback of increased complexity.
S-Corporation Tax Returns
Popular Small Business Tax Structure
In addition to your S-Corporation filing its 1120S return, its owner or owners will receive a K-1 reflecting their share of the company’s profits. That K-1 is incorporated into their personal tax return, a 1040. The filings for the owner and the business are so intertwined that we almost always do tax preparation for both the company and the owner.
S-Corporations have the advantage of allowing owners to designate some of their income as payroll (subject to FICA, or payroll, taxes), and some as profits (not subject to taxes). Failure to run Payroll for an S-Corporation can have numerous problems, so setting up your compliance early is important.
Partnership Tax Filings
Popular with LLCs – Limited Liability Companies
Partnerships, including multi-member LLCs (Limited Liability Companies), file a 1065 Tax Return for Partnerships. After completing the business accounting, the entity files its own 1065, and then generates a K-1 for each owner, whether an individual or another business. Particularly when you end up with nested LLCs owning each other, the flow of K-1s and the levels of phantom income become serious concerns. Having a knowledgeable tax firm can help you navigate this, maximizing your legal protection and minimizing your tax obligations.
Individual Tax Returns
1040 Tax Returns Due April 15th
Individual Tax Returns fall into two main categories, and one related category. Individuals files a 1040, either individually or jointly with their spouse. Non-resident aliens with trade or business income in the United States file a 1040NR – Non Resident Return. When one passes, their estate must often file a 1041 Estates and Trusts Returns.
Schedule C
Very Small Business Tax Returns
Businesses that are setup as sole proprietorships use a form called Schedule C. In a Schedule C business situation, the owner receives the business income, then offsets it with the deductions, reporting the net income on Schedule C. This differs from S-Corporations because all of the net income is subject to self employment taxes. Single member LLCs being treated as disregarded entities are also filed this way.
This isn’t actually a tax return, but rather an attachment to your personal tax return. The IRS has a good explanation of what the 1040 Schedule C tax preparation paperwork is.
Foreign Filings
Foreign Businesses or Foreign Investors
We live in a global economy. Many foreign individuals and companies want to do business in the United States. These individuals and companies have complex filing requirements with big penalties when they are missed. It is important that you report foreign bank holdings, foreign income, and foreign taxes paid. These forms are straight-forward to firms that do international tax work, but may catch your CPA by surprise if you use a small neighborhood tax accountant. Doing foreign business tax preparation is one of our specialties. The penalties for these filings are so extreme- tens of thousands of dollars- it is very important that you comply.