If you operate a business that is formed as a partnership or S-corp, March 15 the deadline for filing your business returns is around the corner. For individuals, the tax deadline falls on Tuesday, April 18, 2017. As you start to reconcile accounts and gather your papers, we have a few suggestions to help you get a head start on your 2016 taxes.
How to get a head start on your 2016 Taxes
For individuals, as soon as you receive your wage and tax statements in the mail, start gathering the documents suggested below by the IRS:
- An official photo ID – current
- You need proof of Birthdates and Social Security numbers for every family member you list on your 1040 forms.
- Wage and tax statements from all employees, W-2, W-2G, 1099-R or 1099-MISC.
- Health Insurance Statements – 1095
- Affordable Health Care 1095A, B, or C
- Health Insurance Tax Exemption Status Form
- If applying ITIN, proof of foreign status.
- Interest and dividend statements – forms 1099
- Copies of federal and state tax forms for 2015.
- Bank account routing numbers and account numbers, including a blank and voided personal check.
- Childcare Tax ID number for your childcare services. (Or request it using Form W10.)
- Income transcripts from IRS (if applicable).
Commercial Business Tax Preparation (in California)
Preparing a business tax return can be a complicated and exasperating experience; especially if you are new business. Depending on your type of business, you will need to gather and prepare documents to help ease filing if you are doing it yourself and/or for your tax preparer. Your business is required to maintain records, in case your business is selected for an audit.
Suggested documentation to maintain and gather:
- Verification of sales, past tax returns
- Paid taxes on sales and purchases
- Accounting journal showing recorded business expenses, purchases and sales.
- Business forms: invoices, receipts, purchase orders, job orders.
- Company leases, service charges, labor income, and income from sales.
- Documents supporting deduction claims.
- Receipts to support total purchase price, resale, lease and personal use.
- Documentation for non-taxable use.
- Company memos, meeting minutes, agreements, and articles of incorporation.
- Bank and credit card statements.
Keep all documents and supporting documentation for at least four years.
Choosing a Tax Preparer
The biggest advantage to having your taxes prepared and filed on your behalf, is that they will be able to represent you in case of an audit. Before choosing a firm or individual to prepare your taxes, verify they are licensed and good standing with the California Board of Accountancy, check references and reviews.
If you have questions regarding your taxes for yourself, your business or your nonprofit contact the professionals at Ernst Wintter & Associates LLP. One of our professionals will be happy to speak with you at (925) 933-2626.