Filing taxes for an S Corporation is a complicated pursuit as tax laws are constantly changing. Hiring a CPA may be just what your company needs to plan and prepare your taxes for the March 15th deadline. Here are a few things you need to consider when preparing your taxes.
Payroll Tax Returns
If a company pays wages to their employees, they are required to report payroll taxes. S corporations are required to submit 2 reports regarding payroll taxes, an annual report, and quarterly reports. You will use IRS Form 940 for the annual report, and IRS Form 941 for the quarterly reports.
Federal Tax Return
S Corporations are required to file Form 1120S annually. This form reports all financial activity for the year including losses, profits, deductions, etc. If your company is unable to file this return by March 15th, you may file for a 6 month extension by completing IRS Form 7004.
S Corporations are pass-through entities, meaning that the company itself is not responsible for paying taxes, rather the shareholders are responsible on an individual basis. The company is required to mail a Schedule K-1 to each shareholder of the company, as well as attach them on their federal return.
If you need any help filing your taxes this year, don’t hesitate to contact us. We are proficient at bookkeeping and payroll processing, as well as tax preparation and planning. We understand that paying too much in taxes can hinder your growth as a company, and we strive to help you maximize your corporation’s deductions and credits. Our team of licensed, experienced tax professionals are ready to help relieve your tax burden.
Here at Klingler CPA, we offer FREE auditing services to each of our customers. That means if the IRS decides to audit your tax return, we will give you support throughout the process.