S-Corp topics:  S-Corp Year End Chores  |  S-Corp Tax Preparation Checklist  |  Organizers

S-Corporation Tax Preparation Checklist

If you have completed your year end bookkeeping tasks, you can start 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 scan this list and ask your bookkeeper to do a year end reconcile and to let me know when everything is ready to go.

• IRS Deadline:  S-Corp returns are due March 15.
• 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.)
• * The late filing penalty with no extension is $220 per month, per partner.

1. General Items
   • Be sure you have closed the books and completed the year end tasks in this article:  S-Corp Year End Tasks.
   • You can download an organizer for your business here: Organizers. There is no need to duplicate items from the financial reports you provide or, if we worked with you last year, on items that have not changed. (New clients will need to fill most of this out.)
   • Business Tax return from last year (New clients only).
   • A copy of your IRS acceptance letter of your S-Corp Election (New clients only).
   • Depreciation schedule from last year (New clients only, usually inside last year's tax return).
2. Changes and updates in your business since last year
   • Name, address, and SSN of each Shareholder during the tax year if changed from last year. (There is a place in the organizer for this.)
   • 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. S-Corps: Payroll Details, please break out
   • Shareholder / Officer Compensation must be separate from the employees (Please include W-2's).
   • Shareholder health insurance included on the W-2.
   • Employee Compensation.
   • Company portion of payroll taxes.
   • Payroll Processing fees.
6. Shareholder contribution and distribution amounts, if any
   • Balance sheet should clearly show shareholder distributions and contributions for the year. Refer to Year End Tasks for details on the bookkeeping needed to close the books.
   • Dates and amounts of contributions and distributions by each shareholder.
   • Shareholder loans to and from the company.
7. Fringe benefits and health insurance for Owner / Shareholders.
• Health insurance purchased (or reimbursed) for owner / shareholders must be as wages not subject to Social Security or Medicare taxes on the W-2. The health insurance is then deducted as self-employed health insurance on the personal return. See details on our S-Corp Year End Tasks page.
• While 2-percent shareholders of an S corporation may receive most fringe benefits, these benefits are not deductible by the shareholder, and must be included in their gross W-2 income.

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