Sacramento and Roseville Accountant for Corporate Tax Returns

When filing corporate tax returns, there are various factors to consider. For example, you may have to determine whether you are being taxed as an S corporation or C corporation. You also need to deal with these issues while you are engaged in operating a successful business. If you need assistance filing corporate tax returns, you should consult with an experienced Sacramento and Roseville corporate tax return accountant. At Cook CPA Group, our tax accountants are dedicated to providing you with the unique representation necessary to file your corporate taxes. Our firm recognizes the difficulty of navigating through complex tax laws to file your corporate tax return, and we are ready to serve you.

Information Needed to File a Corporate Tax Return

Instead of taxing the owners of a corporation, a corporation is taxed as its own legal entity separate from the owners. This means that the owners of a corporation do not pay income taxes personally. To file a corporate tax return, IRS Form 1120 must be used. Form 1120, titled “U.S. Corporation Income tax Return” can be used for corporations and other legal entities that elected to be taxed as a corporation. For example, a limited liability corporation can opt to be taxed as a corporation. Form 1120 cannot be used to file income taxes for S corporations. Instead, Form 1120-S must be utilized. When filing a corporate return, it is important to note the corporate income tax rate which is different from the personal tax rate. Due to the Tax Cuts and Jobs Act of 2017, the corporate tax rate was lowered from 35% to a flat rate of 21%. This new tax rate took effect for corporations on January 1, 2018. To ensure you file your corporate return correctly, you should gather the following information before preparing your return.

General and Financial Information about Your Company

Before filing a corporate return, you should have basic information regarding the following issues:

• Name and address of the corporation
• Employer identification number (EIN)
• All assets the corporation possesses

You should also gather specific information regarding the income of the corporation. To determine the amount of the corporation’s income, you should look to the cost of products sold, dividends to shareholders, gross receipts, and various other financial documents. Our accounting firm can help you determine what documents are necessary to file a corporate return. If you are having trouble securing any of this information, you should speak with the financial officers in your corporation or the board secretary.

Tax-Deductible Expenses

A tax deduction is designed to lower an entity’s tax liability by reducing the amount of income the IRS can tax. While you do not need to have documentation of your deductions when filing, you should ensure you keep track of them so that you are prepared for a possible audit. The following is a list of deductible expenses commonly claimed by corporations:

• Salaries paid to corporate officers and other employees
• Maintenance of corporate assets
• Charitable contributions
• Depreciation of assets
• Pension and profit-sharing plans
• Advertising

This is not an exhaustive list. There are other tax-deductibles that a corporation can claim. For example, if you hire a certified public accountant or an attorney to help deal with company issues, these expenses may also be deductible.

Tax Credits

A tax credit is used to provide individual taxpayers and businesses with incentives for meeting certain criteria. For example, the disabled persons’ tax credit gives incentives to businesses that alter their property to provide accommodations for disabled employees and customers. There are various tax credits that a corporation is permitted to claim:

• Family Leave Act Tax Credit – Allows small businesses to provide their qualified employees with paid leave to deal with family-related issues.
• Environmental Tax Credit – If you implement changes to make your corporation energy-efficient and environmentally friendly, the corporation may be eligible for a tax credit.
• Research and Development Tax Credit – Research involving product development, business performance, and even payments to other researchers can help a business secure a research and development credit.

It is also important to note that corporations must file their tax returns by the 15th day of the third month after the tax year for your corporation ends. This can be confusing depending on when your tax year ends, but our firm is here for you.

Our Sacramento and Roseville Corporate Tax Accountants are Prepared to Work with Your Business

If you require assistance making sure your corporate tax returns are correctly filed, you should contact an experienced Sacramento and Roseville corporate taxes accountant. At Cook CPA Group, our accountants possess decades of combined legal experience, and we will utilize this experience to help you manage your tax returns. Our company has served residents of Sacramento and Roseville for years, and we would be proud to represent you.