This week the IRS has announced they have ended most unannounced visits to taxpayers and small businesses by Revenue Officers. In case anyone needs to know.
Keyword here is “most”. And no one wants to be on the other side of the door when they come knocking and catch you! In this post, we outline the standard forms you need to submit if you have a small business and want to remain compliant.
Sole proprietorships, partnerships, and LLCs filing as sole owners or partners must submit a Schedule C (Form 1040 or Form 1040-SR), Profit or Loss from Business.
In addition, partnerships must file an information return Form 1065, U.S. Return of Partnership Income, and Form 965-A, Individual Report of Net 965 Tax Liability. These report partnership data, including income, gains, deductions, and losses.
If your business structure is a C corp you will need to submit Form 1120, U.S. Corporation Income Tax Return.
S Corps and LLCs filing as S corporations file a Form 1120-S, including Schedule K-1. Each shareholder receives a Schedule K-1, which references any forms they may need to file. Shareholders also file Form 1040 or Form 1040-SR and Schedule E.
But note, you may be required to submit additional forms depending on your business unique situation. Make sure you find out and timely file ALL applicable forms to save yourself the headache down the road.
Small businesses with employees must file Form 941, Employer’s Quarterly Federal Tax Return, or Form 943,
If you are self-employed you are required to pay self-employment tax on your earnings. The information goes on Schedule SE.
Stay on top of your responsibilities as a business owner by doing your due diligence with your SMB financials, records and bookkeeping…
Best practice is to seek professional assistance from a CPA or Tax Attorney.
Hope this helps!
