Everyone knows that filing a business tax return can be time-consuming and stressful. However, by making sure you have access to everything and everyone you need before you begin, you can save yourself a great deal of time, effort, and money. Read on to find out more.
The first thing you need before you file your business tax return is an accountant. This is because business tax can be so complex in the US, and the federal and state rules are updated all the time. What this means is it makes sense to work with an expert that understands the field and will keep up to date with these changes.
Indeed, by partnering with an accountant you will not only be able to avoid fees and fines, but you may also be able to find some effective ways of saving money and reducing your overall tax bill.
The proper documentation
Collecting all the documentation and information that you need, before you complete your business tax return is a must. Indeed, it can help make the process of completing your return not only more accurate but fasters and less stressful too. In particular, you will need to make sure you have detailed and up-to-date accounts, as well as any codes the IRS require like your FEIN number.
Your FEIN or federal employer identification number is crucial because it is what the IRS uses to identify your business in their records, so you will not be able to submit your return without it. The good news is you can make the process of getting a FEIN fast, and easy by using a service that online application for a federal EIN code. All you will need to do is complete a basic form that provides details of your business and they will do the rest.
The next thing you will need before you can file your tax return is your receipts. These are crucial to any deductions you make as they act as proof of purchase. With this in mind, it’s advisable to use a tracking and filing system for your receipts during the year, so when it comes time to file your return, you have everything you need to hand.
Although it is worth noting that even if you do this digitally you still need to keep your paper copies in case you get audited. Additionally, the IRS will compare your deductions to companies similar to your own, which means if they are higher you may be asked to prove that they are genuine costs associated with your business.
A copy of last year’s return
Last, of all, it can be very useful to pull out a copy of last year’s tax return, assuming you had one. This is because it will have all the important information on it including your FEIN number, and your figures including charitable deductions, interests, and dividends, for last year which can help check that your submission for this tax year is accurate.