Corporate Taxes: A Basic Guide

Everyone pays taxes, it’s the law. No matter who you are, or how high up you are on the social or political or business food chain, you must pay taxes. But not everyone pays their taxes in the exact same way. Case in point: corporate tax returns. Corporations have a remarkably different process when it comes to filing tax returns. If you are curious about the process of corporate tax return in Yonkers NY area, read on for the basic steps.

#1. Form 1120

IRS form 1120 is the form used by corporations to report their tax returns to the federal government. Seeing as how this is a tax return form for an entire company, this form is a bit too complicated for the average person. You will need to hire a professional, high grade tax return preparer to handle it when it comes.

#2. When are the taxes due?

The form must be filled out and turned in by the 15th day of the 3rd month after the end of your company’s previous tax year. For example, if the end of your corporation’s tax year is November 31st, then your corporate tax returns won’t be due until February 15th. If said end is on a business or cultural holiday, the actual end is moved over one day. Due dates can be moved around somewhat, but not by a lot, as tax return laws can be incredibly strict about when they’re due. This is so no corporations can pull a fast one on the government.

#3. Required information

There’s a lot more information required when a corporation turns in its tax returns than when an average person does it. You need to turn in at least the most basic information about your corporation, which is shared amongst you and the higher ups of your staff, info on your corporate income, to make sure it’s all legal, and tax-deductible expenses. This info and more is needed to make for a legally valid tax return form. Just like correctly putting down your social security number and processing your math to the final digit, this information, if sent even a tiny bit incorrectly, will invalidate the entire document, and may result in a large fine for the corporation. As such, make sure your software is up to the task, as well as your tax preparer.

There are many differences between normal and corporate tax return forms. After all, one deals with a single individual, while the other deals with a large corporation. To learn more, contact Accutax Business Center for additional information.

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