HIS CPA - Checklist for Year-End Taxes

It is certainly that time of year again. Please be reminded that corporate returns are due March 15. If we want to file by the due date, I will need to receive your data in next few weeks so that I will have an ample amount of time to file. As always, I will file for the automatic six-month extension in the event I do not get the data in time. Please be reminded that an extension to file is not an extension to pay and that both the IRS and the state expect you to pay your taxes as you earn the monies. Please be reminded there are no valid extensions after the September 15 final due date lapses.

To process your corporate return, please forward your balance sheet and your profit and loss and copies of any W-2's the corporation might have issued. If you have not yet done so, please be reminded that 1099's should be issued by the end of January; your payroll service will handle this if you get them the information. Before you send the current year's financial please be sure to always review the prior year's balance sheet on the tax return and ensure that your internal books equals the return while being sure to make any appropriate adjustments. That way you will be assured of starting the year off with a clean set of records which will otherwise distort you current year's operating results.

To complete your corporate return, please forward:

Your year to date Balance sheet, Profit & loss
Year end Bank Statements and Bank reconciliations
Aged Accounts Receivable
Year end Inventory
Aged Accounts Payable
Year to Date Payroll Records by Employee
Notes Receivable and Payable Balances at Year end
Copies of new Notes
The amount of medical insurance paid for each shareholder
If your company is new, please forward copies of the incorporation papers.

Before you send your Year-End Financial please be sure that:

The general ledger balance agrees to your checkbook and your bank reconciliation.
The Accounts Receivable balance agrees to your internal aging reports.
The Accounts Payable balance agrees to your internal aging reports.
You advise of any fixed assets that have been acquired or disposed of during the year.
That ALL of the balance sheet and profit and loss accounts are correct.
That you have only one retained earnings account.
That as of January 1st of the prior year that you closed the shareholder distributions account to retained earnings.
That the retained earnings account on your internal books equals or is reconcilable to the retained earnings to the last corporate tax return filed.

This is to confirm that you are aware are handling all of your payroll and independent contractor/1099 needs, of the need to have a business license, to pay the annual registration fee, to have your annual Board of Directors and Shareholders Meeting, and to file the county property tax report (please be sure to claim the Freeport Exemption on your inventory if you qualify as this can substantially reduce the amount owed). Please note that if you have not yet set up a retirement plan or have a formal financial plan, that I suggest that we sit down together soon to get the right plans in place to help ensure your long-term financial success!

This is to confirm that I suggest that you formally tax plan at least twice annually.

To process your personal income tax return, please forward:

Copies of all reported income forms, i.e. Forms W-2, 1099, brokerage statements, interest, dividends, etc.
Summary of all medical expenses with copies of all individual items over $1,000.
Summary of property taxes with copies of all individual items over $1,000.
Summary of Ad valorem Taxes (property tax on cars) with copies of all individual items over $1,000.
Summary of Mortgage Interest with copies of all individual items over $1,000.
Summary of cash and property contributions with copies of all individual items over $1,000.
Be sure to include any changes in address, dependents, filing status, or any other substantive changes from the prior year which would have impact on this year's return.
Please forward student loan interest, child care expenses, tuition, and any other miscellaneous deductions/income.
Please be sure to let me know of any changes to the claiming of dependents, filing status, address, etc.
If you are a new client to us please bring along for both corporate and personal a copy of your prior year tax returns. If a brand new corporation, please forward along a copy of your incorporation papers, Federal ID #, and your S Corporation acceptance.
If you have had any independent contractor/proprietorship income you have earned, whether you have received a Form 1099 or not, please use this form (PDF) (Excel) to recap all revenue and expenses.
Please be sure to let me know how much you received from the Economic Stimulus Plan during the year.
All K-1s where you and an investment interest including an acknowledgment if you have sufficient basis to take the losses listed.

The initial due date for personal returns is April 15. For returns not filed by that date both the IRS and GA allow for a six month extension. Please be reminded that there are no valid extensions after the October 15 final due date lapses. Please be reminded that an extension to file is not an extension to pay and that you are required by tax law to pay applicable taxes as the monies are earned or you will be subject to additional penalties and interest.

Please be reminded that the mileage rate for 2009 is 55 cents per mile. For 2010, the mileage rate is 50 cents per mile. Please turn in an expense report monthly to get reimbursed for these and any other business expenses you might have paid personally. IRS tax rules require you to have a day by day log to support business miles. Please be reminded that extending the filing of a return does not delay the need to pay as you go as both the IRS & GA will bill you for penalties and interest if you do not pay your taxes during the tax year to which they relate.

I am looking to grow my business by adding key accounts like you with goals and aspirations just like yours. So if you know anyone looking for a Good CPA, please let me know and to check me out at www.HISCPA.com or our book ministry at www.John-Dillard.com

Please be sure to allow 10 days for me to complete your returns after I get all of the information needed.