BUSINESS RETURNS INCLUDING PARTNERSHIPS AND CORPORATIONS
Preparing tax returns for businesses is complex and involves a significant understanding of the Internal Revenue Code and that of various state laws governing taxation. Care must be taken to make certain that businesses properly report all income and disclose any position that is taken contrary to IRS regulations. Failure for a preparer to include this form as part of a business return could result in substantial fines and penalties.
Penalties for preparing business tax returns have increased significantly over the years as a result of increased regulations and risk associated with preparer penalties. Here are a few areas that businesses should pay special attention to in order to minimize risk of an audit and reduce overall preparation fees:
Whether you use a company vehicle for business or your personal vehicle, it is important you keep adequate records involving business use. Although logging beginning and ending odometer readings daily is not required, you must be able to provide the total miles driven for business for each occurrence. You must also be able to provide the total miles driven for each vehicle driven. Also note that miles driven to and from your tax home are not business miles unless you maintain a home office.
The deductibility of meals and entertainment must have a business purpose. Proper documentation is required in order to meet IRS regulations. Take extra steps to make certain you discuss your business topic at the beginning, during, and at the end of your meal. Note that, for years beginning after December 31, 2017 the word "entertainment" should be stricken from this rule as no deduction will be allowed.
Proper record keeping can save you money by reducing the risk of an IRS audit and fees involved with filing your return. If you have any questions about the services we offer and would like to schedule an appointment email us or call 952-855-1111.