IRS Personal & Business Tax Return Filing
What is IRS Personal and Business Tax Return Filing?
The Internal Revenue Service (IRS) Personal & Business Tax Return Filing refers to the process by which individuals and businesses submit their annual income tax return to the United States government. The IRS is the federal agency responsible for collecting taxes and enforcing tax laws in the United States.
How to File Your Tax Return?
Individuals file personal income tax returns using Form 1040 or its variants (1040A or 1040EZ). These forms cover various types of income, deductions, and credits.
Requirements for Completing Form 1040:
01
Personal Information
Provide your full name, address, Social Security Number (SSN), and other personal details.
02
Income Reporting
Summarize income sources, including wages, self-employment earnings, dividends, and interest.
03
Deductions and Credits
Detail eligible deductions, such as student loan interest or mortgage interest, and claim applicable tax credits.
04
Tax Payments and Refunds
Include information on tax payments made throughout the year and determine if you are owed a refund.
How to File Your Business Tax Return
Sole Proprietorships and Single-Member LLCs
Report business income and expenses on Schedule C, filed alongside the personal tax return (Form 1040).
Partnerships and Multiple-Member LLCs
Corporations
Submit Form 1120 for C Corporations or Form 1120-S for S Corporations. These forms outline income, deductions, credits, and taxes owed.
To file your business tax return accurately and efficiently, gather the following essential documents:
1: Income Documents
Revenue details, including sales records, invoices, and 1099 forms for income received.
2: Expense Records
Receipts and documentation for all business-related expenses, such as rent, utilities, supplies, and employee wages.
3: Bank Statements
Statements detailing business transactions, ensuring accuracy in reporting income and expenses.
4: Business Structure Documents
Articles of incorporation, partnership agreements, or other legal documents specifying your business structure.
5: Previous Tax Returns
Copies of prior business tax returns provide historical context and aid in accurate filing.
6: Form 1099s and W-2s
Ensure you have the necessary forms for reporting payments to contractors or employees.
Note that the set of documents may vary for each business structure. We recommend consulting a third party, such as Syntax Solutions, to get accurate information about your business structure.