Federal Corporate Tax Preparation Accountant

If you’re a corporation that has to file federal taxes, it’s important to find an accountant who can help make the process as smooth and stress-free as possible. The federal corporate tax preparation accountants at Cook CPA Group have years of experience dealing with all sorts of businesses and can help yours stay compliant with all relevant regulations. Contact us today to get started!

Preparing to File Federal Corporate Taxes

Corporations are taxed as separate legal entities from the company’s owners. A corporation must file IRS Form 1120, the U.S. Corporation Income Tax Return, to pay its taxes. The corporate income tax rate is lower than the personal income tax rate. Since the Tax Cuts and Jobs Act of 2017, the federal corporate tax rate has been 21% (before the bill, it was 35%).

If you don’t have the information required to complete your taxes, the IRS will send a notice. You will need to get this documentation in advance to ensure that your taxes are properly submitted. When it comes time to submit your federal corporate tax returns, make sure you have the following information readily available: your company’s name and address, as well as its employer identification number and details regarding any assets linked with it.

You’ll need information about your company’s income as well. The expenses of the goods sold by your organization, dividends paid to shareholders, gross sales, and other financial records should all be recorded. A tax professional from the IRS can assist you in determining which papers are necessary to submit your return.

Deductions and Credits on Federal Corporate Tax Returns

Businesses can reduce their overall tax bill by taking advantage of various tax deductions. Salaries paid to corporate officers, asset maintenance, contributions to charity, asset depreciation, pension plans, profit-sharing plans, and advertising and marketing are all possible deductions that businesses may take.

Corporations may also decrease their risk by claiming tax credits. The Family Leave Tax Credit, which allows small businesses to give paid time off to deal with family-related matters, is one of the most commonly claimed credits.

The Environmental Tax Credit, which is given to businesses that make changes to improve the energy efficiency and environmental sustainability of their operations, is another common credit. The Research and Development Tax Credit is available to firms who conduct study related to product development, company performance, or compensation paid to researchers.

Paying Estimated Corporate Taxes

Instead of paying taxes once a year, businesses may pay them once every three months. These are called estimated corporate taxes and are often used by corporations. Businesses can determine how much to expect to be taxed based on the amount of tax they anticipate having withheld and tax credits they expect to receive throughout the year.

If a firm owes at least $1,000 in taxes, it must make estimated tax payments. The amount that a corporation will owe in anticipated taxes is determined by the corporation’s income tax rate; S corporations are taxed at 1.5% of their income, while corporations are taxed at 8.84% of their revenue earned during the year.

Estimating corporate taxes on Form 1040-ES is possible for businesses. Determining adjusted gross income, taxable income, and claimed credits for the year will be required while completing this form. When it comes to determining how much they owe in estimated taxes, businesses have a few choices. There are two that are more often utilized than the rest, though.

The first method entails just paying 25% of the income tax that will be shown on the company’s annual return. The alternative popular technique for paying estimated taxes is to pay 25% of the income tax displayed on the previous year’s return. Over the course of the year, corporations should anticipate to pay their taxes four times; these are generally April 15, June 15, September 15, and January 15.

If you have those dates on a weekend or public holiday, you may submit your tax payment on the next business day. Businesses can also apply for extensions for their anticipated tax payments using Form 7004, which is available from the IRS website (www.irs.gov).

Accountant Available for Federal Corporate Tax Preparation

Get in touch with Cook CPA Group if your firm or organization needs assistance filing federal corporate taxes. The specialists at Cook CPA Group have decades of accounting expertise, allowing them to efficiently and accurately aid companies and corporations from all industries in file their federal corporate taxes correctly.