A Checklist To Filing Tax Returns As A New S-Corporation

By Roxanne Coffelt |

Business Evaluation Services Indiana

As a Certified Public Accountant in Warsaw, Indiana, I understand that filing tax returns for a new S-Corporation, or LLC can be quite a challenge. Without the right help, filing tax returns can be viewed as a stressful or laborious task, but with a little preparation, you can handle your filing quickly and easily.

As an expert in taxes, I’ve created a handy checklist to help you complete your taxes with as little stress as possible and get organized for your tax accountant. Follow my checklist to new S-Corporation tax returns to ensure you file them accurately and on time so that you can get back to the other important things in life.

1. Financial Statements.

Use financial statements preferably from a double entry bookkeeping system. If you use Quickbooks, Xero or other programs, you should be able to print out information (or if your preparer has the same software give them a backup.) Better yet, if you use an online accounting program, you can provide them with access to your books online, and they can get exactly what they need from there.

If possible, make sure your bank and credit card accounts are reconciled. If you cannot reconcile them in-house, you may want to have your accountant reconcile those accounts on a monthly basis to avoid stress, high costs and having to file an extension.

If you do not use an accounting program, a statement of cash receipts and disbursements by category can be used.

Note: Meals must be broken out separately from travel expense.

2. Balances of all notes and loans payable at year end including credit cards.

If you are filing on an accrual basis instead of a cash basis, you will also need balances of everything owed at year end including accounts payable and expenses incurred but not yet paid for.

3. Balances of all notes receivable at year-end.

If you are filing on an accrual basis, you will also need balances of all accounts receivable and prepaid expenses.

4. Balance of inventory on hand at year-end.

You may want to discuss with your preparer how to value this, as there are several methods by which to value inventory.

5. Any fixed asset purchases including description, date of purchase and cost.

Fixed assets would be equipment, furniture, vehicles, etc. that are expected to last more than a year. Your company should have a policy regarding a “de minimus” amount for fixed assets, meaning any assets which cost less than that amount will be expensed in the current year. This amount can be as high as $2500 per item.

6. Any intangible assets acquired.

These are assets that are not physical, such as trademarks, patents, buying a customer list or paying someone for a non-compete agreement.

7. Miles traveled.

Mileage for the year on any company owned/leased vehicles, including the breakdown between business miles and any personal or commuting miles.

8. Details of co-owners and stakeholders.

a. Names, addresses and social security numbers of all the owners of the S-Corp and the percentage owned by each.

b. Salary or wages paid to each shareholder/member who owns more than 2% of the company. (Copies of W2s and year-end payroll tax reports would be wonderful!)

c. Any other funds paid to the company by (or on behalf of) shareholders.

d. Any other funds paid out of the company to shareholders or paid on their behalf.

e. The name of the shareholder/member who will be signing the tax return.

9. EIN and date of Incorporation.

The corporation’s EIN (Employer Identification Number) and date of incorporation (or organization) are essential requirements.

10. The date the S-Election was effective.

You should have a letter from the IRS telling you the date the S-Election was effective and your accountant will probably want to see it. If you intended, but forgot, to make your election you can now do it when you file your return.

11. Payments received.

Did the corporation receive any payments of $10,000 or more that were paid in cash and not check?  

12. Were there any rental services totaling $600 or more?

If the company paid any individual (not a corporation) for rent or services totaling $600 or more during the year-end, then the company has to issue the required 1099-Misc. Form.

As a Certified Public Accountant in Warsaw, Indiana, I strive to assist you in any way I can and hope that you have found this checklist useful. Moreover, my practice offers exceptional, personalized accounting services to small businesses so that they can improve their businesses. My personalized packages are tailored to the accounting needs of your business so that you derive maximum benefits from my work.

To learn more about the services Roxanne Coffelt CPA LLC offers, please click here. Have a question? I’d love to hear from you. Contact me here.