Strel Media

Partnership topics:  Year End Chores for Partnerships  |  Partnership Tax Preparation Checklist  |  Organizers

Partnership Tax Preparation Paperwork checklist

If you have all your year end tasks square away, you'll want to start working on collecting your paperwork so we can prepare your annual tax return. We can directly access most client's Quickbooks accounts to download the reports we'll need to complete your tax return. If this is the case, you probably need to do nothing more than to ask your bookkeeper to do a year end reconcile and to let me know when everything is ready to go.

  • IRS Deadline:  Partnership returns are due March 15.   The late filing penalty with no extension is $220 per month, per partner.
  • Our Deadline: We will need your paperwork in Early February to avoid the need for filing an extension.
    (Paperwork for your personal 1040 return can come later.)

  1. General Items
    • Be sure you have closed the books and completed the year end tasks in this article:  Partnership Year End Tasks.
    • Business Tax return from last year (New clients only).
    • Depreciation schedule from last year (New clients only, usually inside last year's tax return).
    • You can download an organizer for your business here: Organizers. There is no need to duplicate items from the financial reports you provide, or on items that have not changed if we worked with you last year.   New clients will need to fill most of this out.
  2. Changes and updates in your business since last year
    • Name, address, and SSN/EIN of each Partner during the tax year if changed from last year.
    • Any letters or notices you received from the IRS last year.
    • Any Forms 1099-B, 1099-DIV, 1099-INT, 1099-K, or 1099-MISC received.
  3. Business Income and Expenses (Profit and Loss Report)
    • If using online bookkeeping such as Quickbooks online, the easiest approach is to add us on as an accountant, or supply the P&L report.
    • List of major asset or equipment purchases, sales or disposals. There is a page in the organizer for this. Typically include purchases over $1,500
    • Payroll Expenses (see below).
  4. Balance Sheet, end of year
    • Like income and expenses, the easiest approach is to add us on as an accountant, or supply the balance sheet report
    • Confirm that balance sheet actually matches up against your bank statements.
    • Show accurate balances of any unpaid liabilities such as loans, credit cards or 4th quarter payroll taxes.
  5. Payroll Details, please break out.
    • Employee Compensation.
    • Company portion of payroll taxes.
    • Payroll Processing fees.
  6. Partner contribution and distribution amounts, if any
    • Dates and amounts of contributions and distributions by each partner.
    • Partner loans to and from the company.
  7. Fringe benefits, health insurance and guaranteed payments for Partners.
    • Guaranteed payments are work payments to partners unrelated their ownership percentage, usually for additional services performed.
    • Health insurance purchased (or reimbursed) for a partners must be included as a guaranteed payment. The health insurance is then deducted as self-employed health insurance on the personal return.
    • Most partner fringe benefits must be included as guaranteed payments.
    • A partnership’s matching contribution to a partner’s 401(k) is generally treated as a guaranteed payment and would be subject to self-employment taxes (but not income taxes).