Corporate Tax Returns

The United States IRS requires that all corporations file tax returns annually, regardless of whether or not the company was profitable during the tax year. 

We assist with preparation and lodgement of all tax filing requirements, including:

• Form 1120
• Form 1120-F
• Relevant state forms

INFORMATION INCLUDED ON CORPORATE TAX RETURNS

Your corporate tax return must include details of the company’s profits and expenses. The net result determines the amount of tax the company owes to the US government. Included in the return are several schedules that detail information such as the costs of goods sold, dividends and deductions, officer compensation, details about the accounting method used, business type, NAICS classification number, balance sheets, and the reconciliation of income and loss.

As tax professionals, we ensure your corporate tax return is prepared properly, keeping you protected from the risk of audit, while ensuring you maximise your tax claims. 

WHAT EXPENSES CAN I DEDUCT ON CORPORATE TAX RETURNS?

Corporations are able to claim many tax deductible expenses against income. As experienced tax professionals, we will assess the deductibility of your expenses to ensure your claims are valid and effective.

The financial officers of the corporation should be tracking these details throughout the year and be able to supply full documentation in the case of an audit.

Without adequate documentation you risk failing an audit. The deductible expenses include:

• Officer compensation
• Other salaries
• Repairs and maintenance
• Rents
• Taxes and licenses
• Interest expenses
• Charitable contributions
• Depreciation
• Advertising
• Pensions and profit sharing plans
• Employee benefit programs
• Domestic production activities
• Other miscellaneous deductions

SPECIAL RULES FOR FOREIGN INVESTORS

If you are a foreign investor who owns a US corporation, you are required to file US corporate returns. Since foreign ownership can introduce complex tax issues it is important to engage a qualified and experienced international tax expert.

We provide advice to non-US residents who are starting, running, or transitioning a US corporation. To ensure your corporation is in the best position possible, it is important to talk to us as early as possible. This means you should seek advice when opening a business in the US as well as when filing taxes.

Under US tax law, non-residents may own shares in a C-Corporation. These shareholdings may subject you to double taxation of profits at the corporate level and at the personal level for dividends when these are paid out to shareholders. Alternatively, LLCs will pass on all the profit to the owner, who will then need to file personal tax returns with the IRS.

THE DEBATE AROUND USA TAX RATES

The United States has some of the strongest global markets, but some argue that it also levies the highest corporate tax rates among developed nations. There is debate on whether or not the US corporate tax rate is actually higher, especially when all of the deductions and credits are taken into account.