10 questions answered
Tax Preparation FAQs
Short, plain-English answers about business and personal tax returns: deadlines, documents, extensions, penalties, and what to do when a past return needs fixing.
Deadlines and filing
- When is the business tax filing deadline?For calendar-year businesses, partnership and S-Corporation returns are due March 15, while C-Corporation returns and individual returns with a Schedule C are due April 15.
- What documents do I need to file business taxes?To file business taxes you need a year-end profit and loss statement and balance sheet, bank and credit card statements, 1099 and W-2 forms, payroll reports, records of large purchases and loans, last year's return, and any IRS or state notices.
- Does a tax extension give you more time to pay?No, a tax extension gives more time to file, not to pay.
- What happens if I file taxes late?Filing late triggers a failure-to-file penalty of 5% of unpaid tax for each month or part of a month, up to 25%, plus interest.
Deductions and rules
- What is the qualified business income deduction?The qualified business income (QBI) deduction lets owners of sole proprietorships, LLCs, partnerships, and S-Corps deduct up to 20% of their business profit.
- Do I need to file taxes in multiple states?You usually need to file in every state where you earn income or your business has nexus, meaning a strong enough connection like employees, property, or significant sales.
Fixes and help
- Do I need a CPA to file business taxes?No, you do not legally need a CPA to file business taxes.
- How long does it take to prepare a tax return?A simple personal return usually takes a few days once every document is in.
- Can you amend a prior-year tax return?Yes, you can amend a prior-year tax return to fix mistakes or claim missed deductions.
Did not find your question?
Ask it on a free 30-minute call. No obligation, all 50 states.