Experience an Effortless Tax Season This Year by Filing Your Business Taxes with Tax Matters
Tax Matters offers business tax services to the El Paso community at an affordable rate to keep you and your company’s revenue safe and organized. As you prepare to file this tax season, we can help you feel at ease by avoiding the last-minute rush to file. Our knowledgeable team of tax preparers will work with you to make sure you file on time and have a good understanding of your income tax return.
Business Tax Preparation and Planning
Managing your business’s profit can help you minimize risk while improving performance. At Tax Matters, we make the entire process clear and manageable.
Here’s how you can prepare to file your taxes today:
- Step 1. Schedule an appointment with us. Scheduling before April 15th will guarantee that you will file well before the annual deadline.
- Step 2. Collect your records — Gather all reports and receipts containing your company’s earning and expenses. We suggest using a spreadsheet on your computer to keep track of incomes and deductions.
- Step 3. Attend your appointment. During your scheduled time, one of our professional tax preparers will answer questions while providing beneficial knowledge that can be used throughout the entire year.
- Step 4. Follow up with us. If you have any questions or concerns, help is only a phone call away. Even long after you’ve filed, you can always give Tax Matters a call to help you understand important data related to your business’s taxes.
There are various ways to file depending on how you run your business. Each of the four business entities in the US reports their income and expenses through respective forms designated by the IRS.
How to File According to Your Business Classification
Tax Matters will help you file according to your business’s classification. Here are the four common business entities:
- Limited Liability Company (LLC). States will determine the regulations of LLCs as they can function as both a corporation and partnership. As an LLC, you’ll report taxes under personal income tax returns.
- Sole Proprietorship. If you own an unincorporated business by yourself, you are required to file a self-employment tax as well as your individual income tax.
- Partnership. Businesses who function as partnerships do not pay corporate taxes. Instead, a partnership will report profits and losses to the IRS in Form 1065.
- S Corporations. Similar to partnerships, S corporations do not pay federal income taxes but rather use Form 1120S to file their annual return. As an S corporation, shareholders do not have to pay self-employment tax.
What to Expect in the Event of an IRS Audit
All businesses with the exception of partnerships must file an annual income tax return. This applies to self-employed individuals, small businesses, as well as anyone earning over $400 from work-related activities, such as selling things online. It’s extremely important that as a business owner, you file accordingly. The consequence of not filing correctly could result in a large penalty from the IRS.
Audits from the IRS are often associated with misrepresentation or extortion, but that’s not always the case. If you’re selected for an audit, there’s no need to fear. The IRS conducts reviews to ensure information is reported correctly and meeting tax laws. Audits can be selected randomly or if a related taxpayers or investors was selected, you could be selected too.
If you’re selected for an audit, here are the types of records that the IRS may request:
- Canceled checks
- Legal papers such as property acquisitions or tax preparation
- Loan agreements
- Logs or diaries
- Travel tickets for work and personal trips
- Medical and dental records
- Theft or damaged items— any insurance reports of lost or damaged items
- Employment documents
- Schedule K-1 — used to report each shareholder’s income, losses, deductions, and credits, if filed as an S corporation.
In general, the IRS will check records as far back as three years but no more than six. The length of the audit will depend on its type and complexity.
Important Tax Dates
- April 15th is the typical deadline to file but there are exceptions depending on the calendar day it falls on as well as legal holidays.
- Taxpayers can file as early as January 29th.
- The deadline to file individual income taxes for 2018 is April 17th.
- For C corporations, the deadline to file is the 15th day of the fourth month following the close of the tax year. For most taxpayers, their deadline is April 15th.
- If you’re an S corporation, you must file by the 15th day of the third month following the close of the year, which is typically March 15th.
Contact Tax Matters Today
Make this tax season as smooth and straightforward as possible. At Tax Matters, your business needs will be met with personalized care. Give us a call today to schedule an appointment.