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
 
 

COMMON QUESTIONS CLIENTS ASK ABOUT CORPORATE TAX RETURNS

WHICH CORPORATIONS REQUIRE A CORPORATE TAX RETURN?


Corporate tax returns are needed for businesses who have incorporated as either a C-Corporation or S-Corporation. Corporate structures can have significant tax advantages since these structures allow the corporation to pay tax on profits instead of the owner. We can help you assess the best structure for your business to reach the goals and tax effective outcomes you desire.

HOW IS A CORPORATION TAXED?


C-Corporations pay tax on all profits, minus any deductions. S-Corporations have the option to choose to be taxed as a corporation or as a partnership where the business is treated as a “pass-through entity”. Under the latter the profits are passed on to the owners and taxes are collected via the individual partners’ personal tax returns.

WHEN IS A CORPORATE TAX RETURN DUE?


Corporate tax returns are typically due on March 15th each year, however, corporations may request a six-month extension. If your corporation has more than $10 million in assets you must file the tax returns online. We can file online on behalf of your business, but all the paperwork must be filed electronically. Corporations are also able to make installment payments in April, June, September and December.

 

ENSURE YOUR BUSINESS MEETS ITS OBLIGATIONS

We will help you understand your corporate tax obligations and file the necessary forms and returns to ensure your corporation is compliant.

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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. 

 
 

Information and Documents for Corporate Tax Returns

 

To complete your corporate tax return you need to include personal details such as the name, address, employer ID number, date of incorporation, and the total assets. 

The corporate financial officer will need to supply details about the corporate income including:

  • Gross receipts
  • Cost of goods sold
  • Dividends
  • Interest
  • Rents
  • Royalties
  • Capital gains
 

BE PROACTIVE WITH YOUR CORPORATE TAX RETURN

We will advise and guide you through the records you need to keep to ensure all the necessary information is available for filing your corporate tax return.

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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.

 
 

UNDERSTAND YOUR TAX POSITION

We will prepare and file your corporate tax return while proving guidance and advice on how to optimise your tax position.

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ADDITIONAL SERVICES WE CAN HELP YOU WITH

 
 

TAX ADVISORY


Tax issues involve structuring, tax planning, payroll, accounts, income tax, state taxes, federal taxes, international taxes, succession planning and more. We provide proactive, tailored tax advisory services to really help your business grow.

 

BUSINESS TAX REVIEW


We provide you with a comprehensive business tax review to provide you with proactive, effective, and actionable tax advice for your business. This gives you the knowledge required to understand and make effective tax management decisions.

 

WE GIVE YOU PEACE OF MIND

Whether you are running a US corporation domestically or as a foreign owner, it is important to get proper advice and the specialised knowledge required to prepare your returns effectively. We take care of the entire process of preparing and filing your corporate tax return so you can focus on your business.

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NEWS AND UPDATES

 

US Taxpayers given some Reporting Relief on certain Foreign Trust Investments


10th Mar 2020
Jurate Gulbinas

Section 6048 requires US taxpayers to make an annual report regarding financial or asset transfers in relation to the receipt of distributions from foreign trusts Taxpayers can be penalised if they...

 

Making a check-the-box election as a foreign corporation


4th Mar 2020
Jurate Gulbinas

This article relates to foreign business founders with an active business, who are moving to the US There is a risk that foreign earnings may be double taxed when your organisation is taxed as a US...

 

Online Business with No Physical Presence May Be Liable for US Sales Tax


29th Nov 2019
Jurate Gulbinas

In our previous article on the topic of sales tax in September 2018, titled “Understanding Sales Tax in the US” Click here to read the post, we discussed the ways in which US states themselves...

 

US Taxpayers given some Reporting Relief on certain Foreign Trust Investments


10th Mar 2020
Jurate Gulbinas

Section 6048 requires US taxpayers to make an annual report regarding financial or asset transfers in relation to the receipt of distributions from...

 

Making a check-the-box election as a foreign corporation


4th Mar 2020
Jurate Gulbinas

This article relates to foreign business founders with an active business, who are moving to the US There is a risk that foreign earnings may be...

 

Online Business with No Physical Presence May Be Liable for US Sales Tax


29th Nov 2019
Jurate Gulbinas

In our previous article on the topic of sales tax in September 2018, titled “Understanding Sales Tax in the US” Click here to read the post, we...