Whether it’s your first time filing taxes for your business this year or your tenth, being prepared for tax season and keeping your documents organized will save you time and make the process go smoothly.
Unsure of what documents you even need in order to file your taxes? We’ve got you covered. We’re breaking down records and information to have lined up for when you are ready to file your taxes or pass everything along to your accountant or firm.
General Business Information
General business information can be obtained from your records or looked up through the IRS website. In addition to your personal information (if you’re filing your business taxes with your personal ones), you’ll want to have these items readily accessible.
- Business EIN Number (you can check here on the IRS website)
- Last year’s tax return (you can request previous year’s transcripts on the IRS website)
Depending on how your business is structured, certain IRS tax forms and annual documents are needed to file your taxes. You always need to report your business earnings to the IRS and pay tax on them. However, the forms you submit depend on how you operate your business. Here are some of the forms your company may require.
- W2s and Schedule C (Form 1040)
- Depending on how your business is structured, 1065, Schedule E (1040), Form 1120, Form 1120S, or Form 1099-NEC
Earnings and Expense Reports
Your annual earnings and documents that track expenses are crucial for filing your taxes. These records determine what costs you can write off, how much you pay back in taxes, and other variables that influence your filing.
We recommend you keep things organized throughout the year (like mileage tracking and expense receipts) so that when it comes time for tax season, you’re ready and can easily find the things you need. Some of the items you’ll want to locate before filing your taxes are listed below.
- Records of goods sold
- Sales Receipts
- Receipts for rent, office supplies, and other business expenses
- Employee earnings
- Mileage records
- Business Expenses including marketing, advertising, phone and internet plans, insurance, professional fees, health insurance premiums, and office repairs or maintenance
- 2020 COVID-19 related aid, including grants, economic injury disaster loans (EIDLs), and the paycheck protection program (PPP) loans (learn more about the CARES Act for small businesses)
Since 2020 was a unique year for many businesses, don’t forget to include COVID-19 related information in your 2021 filing. If you received any grants, loans, or other relief in 2020, you will want to track down all records to have on hand.
Additional Business Income
If your business has additional income streams, you’ll also need documentation of them for tax purposes. Here are a few other business streams of income that may apply to you.
- Sales and service gross receipts
- Income earned on business checking or savings accounts (1099-INT or statement)
- Rental income
Important Deadlines in 2021
While quarterly tax deadlines may be familiar, here is a list of additional 2021 essential dates you may want to add to your calendar. At this time, the IRS has not announced plans to push back the individual income tax return filing deadline.
March 15, 2021
LLCs – To file, consult with your tax preparer to discuss what IRS forms are needed.
April 15, 2021
C-corporations – To file, submit Form 1120 for each shareholder.
Quarterly estimated tax deadlines
- April 15, 2021
- June 15, 2021
- September 15, 2021
- January 15, 2022
With so much changing for businesses in the past 12 months, partnering with a professional CPA firm is the best way to ensure that you correctly file your business taxes and receive the maximum benefit for you and your company. To find out if Gift CPAs is the right fit for your needs, schedule an appointment with our team today.