Business Tax Returns: 1120, 1120S, 1065, 941 & 940

We prepare federal business and payroll tax returns for small and mid-sized businesses in Metro Detroit and nationwide, including:

• S corporations (Form 1120S).
• Partnerships and multi-member LLCs (Form 1065).
• C corporations (Form 1120).
• Employers filing quarterly and annual payroll returns (Forms 941 and 940).
• Sole proprietors and single-member LLCs, whose business income is reported on the owner's Schedule C.

S corporations pass income through to shareholders, but the return itself has to be right. For calendar-year companies, Form 1120S is generally due March 15.

• Shareholder K-1s prepared and delivered so owners can file their personal returns.
• Reasonable compensation reviewed, one of the IRS's top audit issues for S corporations.
• Shareholder basis and distributions tracked to avoid unexpected taxable gains.
• Late-filing protection. The IRS charges a penalty for each shareholder, for each month the return is late.

Partnerships and multi-member LLCs file Form 1065 and issue a K-1 to each partner. For calendar-year partnerships, the return is generally due March 15.

• Partner K-1s with each partner's share of income, deductions, and credits.
• Guaranteed payments and partner draws handled correctly.
• Capital accounts maintained and reconciled year to year.
• Ownership changes, new partners, and buyouts reported properly.

Payroll taxes are the IRS's top collection priority. Unpaid trust fund taxes can become a personal liability for owners through the Trust Fund Recovery Penalty.

• Form 941: quarterly federal withholding, Social Security, and Medicare, generally due April 30, July 31, October 31, and January 31.
• Form 940: annual federal unemployment (FUTA) tax, generally due January 31.
• Reconciliation of payroll returns with W-2s and deposits.
• Catch-up filings for missed quarters, plus help resolving payroll tax debt.