Alpharetta/Johns Creek/Duluth CPA…Filing of Corporate Multi-State Returns
Multi State Reporting is not for the faint hearted or ill prepared and taxes a great amount of tax planning to be ready so that no undue surprises occur. The below is a sample letter we might send to a client to help them with their multi-state filing responsibilities when filing of their Corporate Income Tax Return or IRS Form 1120S:
Please be reminded that the IRS/GA/AL will assess late fees and interest for late payment. Your 2011 income grew substantially/doubled over that of 2010 with no substantive change in your withholding for the IRS, GA or AL. Please be reminded that I suggest that we tax plan at least twice annually.
This will confirm our advice that:
You should file corporate and personal income tax returns, business registrations and licenses in all states where you conduct business, have employees and/or a physical location. This includes tax law requirements that your reflect and show your wages and withholdings in the state where your/the W-2 wages were actually earned (i.e., if earned in AL, should show as AL wages and withholdings).
This is to confirm that you are handling all payroll and 1099 issues, your county property tax report, and your business license.
This is to confirm that you are aware of the need to have annual Board of Directors, Officers, and Shareholder’s Minutes meetings and that each year you should pay the annual fee with the Secretary of State’s Office to renew your corporations annual registration.
Please be reminded that you need to keep documentation of business miles by day by vehicle.
This is to confirm that you are aware that all active employee owners have to take a fair salary given their position and profit and that the IRS is a pay as you go system and that you are required to pay your taxes as you earn profits. Accordingly especially since you have multi-state reporting and taxation, I suggest that we tax plan at least twice annually.
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