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THE Checklist you need for New Tax Day (May 17th)

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!

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