.png)
The extended tax deadline date is a big win for businesses that need time to work
through how Covid-19 tax credits, loans, and relief programs affect 2020 tax returns. It’s
definitely new territory for everyone.
For a detailed breakdown of how each program affects your tax return please visit:
https://www.usa.gov/federal-agencies/internal-revenue-service
BMCA has created this easy-to-follow checklist that will help you get ready for the new May 17, 2021 tax deadline.
BUSINESS OWNERS TAX CHECKLIST:
BASIC INFORMATION
Last year’s tax returns (federal, state, and local)
Employer Identification Number
Estimates of state and local tax payments made in 2020, and when you paid them
Each individual or entity owning 2% or more of your business’ stock
Your IRS acceptance letter of Selection or previous Form 2553 and proof of state Selection (if applicable)
List of states and their ID numbers where your business has reporting requirements
Articles of incorporation or bylaws
Form 8832, if applicable
SHAREHOLDER INFORMATION REQUIRED
Names, addresses, and SSN/EIN of each shareholder in 2020
Each shareholder’s stock ownership
Shareholder reports for capital contributions, withdrawals, loans, and distributions
Shareholder reports for compensation and benefits including the cost of medical and life insurance
Shareholder reports detailing any change in ownership during the tax year
GOVERNMENT FORMS
1099 Forms
Schedule K1 Partnership, S-Corporation, and Estate Trust Income
Granted credit certificates issued by federal or state taxing authorities
FINANCIAL RECORDS
Trial Balance
Statements from bank accounts and credit cards
For multi-state businesses, report sales, payroll, and property values for each state (included in your P&L Report)
Cost of Goods Sold (P&L)
A schedule of any carryover losses, deductions, and credits from prior tax returns
Summary of records of all employee and contractor payments and taxes
Summaries or copies of all 1099’s and W-2s issued
Records of wages paid
Summary or copies of all federal unemployment, social security, and Medicare taxes paid (forms 940 and 941)
State and local payroll tax paid
FINANCIAL RECORDS TO HAVE ON HAND
*Please work with your accountant to make sure the following records are correct and easily
accessible.
Prior year depreciation schedules that include the cost of the asset and when you acquired it, prior depreciation, and business use percentage
All assets acquired in the year including their cost and when you bought them
Sales proceeds from any assets disposed of during the tax year, including when you purchased them, the cost, trade-in allowance, expenses of the sale, and any accumulated depreciation
Mileage records for owned and leased vehicles, including the costs of maintaining the vehicles and the gas
DEDUCTIONS TO KEEP TRACK OF
*Claiming any of the items below as business expenses? You’ll need to keep copies of receipts (either paper or electronic) and other documentation in case you’re audited by the IRS. You can easily add and keep copies of your receipts in QuickBooks.
Home office purchases
Utility expenses
Mortgage interest paid
Moving expenses
Real estate taxes
Travel expenses
Mileage records
Vehicle payments and taxes (e.g. for a vehicle used for business purposes)
Research expenses
Legal and professional fees
Education expenses (e.g. course fees required for your work, textbooks, and other purchased materials)
Business meals
Charitable donations/contributions
Energy efficiency property expenses
Household employee expenses
Investments
Retirement contributions
Foreign earned income and taxes paid
We hope this helps you file correctly and on time! If you have questions or need support in other financial matters for your business please click below. We'll be happy to help any way that we can.
Sincerely,
Team BMCA!
