How To File Corporate Taxes
Like everyone each year, corporations have to file and pay taxes to the federal government before the April 15th deadline to the Internal Revenue Service so it is important to know how to file corporate taxes. Many large or small businesses typically hire accounting firms to handle the financials and file their return for corporate taxes on time or extensions when the duty is not possible given the allotted time. These types of returns can be either filed through the mail or online and must include all the necessary information according to the applicable tax laws of the year. This should not be mistaken for the state taxes where the corporations operate, as each one will need a form filled out with the applicable information as well. Here are the steps to fill out a basic return for corporate taxes for the corporation:
- Prepare the latest Form 1120 with all information needed to complete and file corporate taxes in the return.
- Have the required documents, such as complete financial statements, an income statement, a balance sheet, a transaction history and a summary of shareholders with each name, address and Social Security Number.
- Once the form is complete, include any accompanying returns, then mail or e-file the return before the April 15th deadline.
- If it is not possible to file corporate taxes on time, file for an extension of an additional six months.
Note: Whoever will file corporate taxes should be up to date with the latest tax laws. Consult with an accountant or firm if you are unable to complete corporate tax returns on your own. Ensure accurate bookkeeping is done in order to fill out the forms as quickly and accurately as possible.