All corporations with quarterly calendar year-end files submit their quarterly corporate tax returns to the Internal Revenue. Receiving an employee’s authorization to sign the tax return is the last step in the entire tax-return procedure.
This process is usually the only time that the taxpayer receives a copy of his/her corporate tax return because the taxpayer’s accountant normally prepares it. This is where the person working with you for your corporate tax return should have the experience, as most of the time, this step is one of the more important to do.
The first thing that an accountant will do when he/she receives your corporate tax return is to review the information and make any necessary adjustments. This will typically be done through a spreadsheet created by the accountant with all of the information in it. The process may also include entering the data into a computer program that automatically calculates the amounts owed.
After reviewing the information, the accountant will then prepare your corporate tax return. The accountant will complete this step after you are given the signature from the business owner. You will then receive an electronic receipt for your corporate tax return. An electronic receipt will also allow you to view the information on your tax return without going through it manually.
After receiving your corporate tax return, you must review the information carefully to ensure that everything is accurate. The return should be signed in front of witnesses to verify the information before it is sent out to the IRS.
If your corporate tax return is not prepared correctly, then you could lose significant points with the IRS if you are ever audited. An audit could also result in substantial fines that could harm your business. Your accountant needs to be on the same page with the taxpayer regarding the return filing. Failure to do so could result in a delay in the IRS audit process or even an audit penalty being filed against the taxpayer.
Because your accountant will likely have input on how your corporate tax return is prepared, they will probably have some suggestions on what changes or updates to make to the paperwork and how it is formatted. Some items are not included in any typical corporate tax return, such as depreciation expense on buildings or machinery, the payment of a certain percentage of a corporation’s state income taxes, and other deductions that are not usually available.
If you want to ensure that your corporate tax return is free from errors, it is best to ask an accountant to review the documents you submit with them for review. The accountant will be able to advise you of any problems that may come up.
Hiring a professional tax adviser will help the process. These professionals are experts in their field and can help you navigate the process and prepare your return correctly.
