Roseville and Sacramento Accountant for Small Business Amended Tax Returns
Cook CPA Group
As the owner of a business, managing your taxes can seem like an entirely new job. It is important to understand the filing requirements that the Internal Revenue Service has set for the type of business you operate. For example, if you are running a partnership, filing a tax form for corporations is a serious error. If you believe you filed an inaccurate tax form for your business, you should consult with an experienced Roseville small business accountant today.
The tax return accountants at Cook CPA Group can help your business rectify any errors in a previous tax filing. We recognize the difficulty of operating a successful business and managing your tax liability, and we are here to help you alleviate the process. To schedule a free consultation with one of our diligent CPAs, call Cook CPA Group at (916) 724-1665, or contact us online.
When to File an Amended Business Tax Return
If you believe you made an error when filing taxes for your small business, it is important to understand when you may need to correct that mistake. If there is a serious issue with your business tax return, the IRS will typically mail you a notice that instructs you to amend your return. If you received a message like this, do not panic; it does not automatically mean that you are going to be audited. However, you should be aware of some common filing errors so that you can avoid receiving a notice from the IRS entirely.
One common error that is committed when filing a business return is to fail to claim tax credits. This mistake hurts taxpayers far more than it hurts the IRS. A tax credit is a reward for businesses that meet certain criteria. For example, if you employed a disabled worker, your business may accumulate tax credits.
Tax credits are preferable to deductions because a tax credit is deducted from your business income before gross income and taxes are calculated. Alternatively, a tax deduction will decrease your net taxable income. When you claim a tax credit, not only does your business profit, but so do your employees and the United States economy.
One new tax credit that you should know about is the family leave credit that was established as part of the 2017 Tax Cuts and Jobs Act (TCJA). Your business may be entitled to a family leave credit if you have a policy that permits qualifying employees to utilize a minimum of two weeks of paid family leave in addition to other vacation or sick days they are entitled to. Additional tax credits your business may be able to claim include:
- Implementing environmentally friendly business programs
- Research and development credits
- Renovating your business properties to accommodate disabled people
- Alternative motor vehicle credit (using hybrid vehicles)
- Health care credits
- Work opportunity credits
Failing to claim a tax credit that your business earned could leave thousands of dollars on the table every year. That is why you should speak with an experienced accountant to help you determine whether you can amend your business returns to claim credits from previous tax years.
Filing the wrong tax return is another mistake that is often committed by business owners. For example, filing a tax return for a corporation requires Form 1120x; if you file a Form 1040X for sole proprietors, you have made a serious mistake. This is an understandable error because the IRS has several different forms depending on the type of business you are operating. However, you should file an amended return as soon as possible despite whether you committed an honest filing mistake.
Another issue that a business owner should avoid is misclassifying their employees. If a person works as a full-time employee and their employer determines the particulars of their work day, they should not be classified as an independent contractor. This type of error may trigger serious tax consequences.
There are many other problems that could require a business owner to file an amended return. To learn more about amending tax returns, you should consider speaking with an experienced California small business accountant. Our firm can ensure that you file using the correct forms, and we will work tirelessly to discover any tax credits that your business may claim.
Our Sacramento Tax Return Accountants are Ready to Work with You
If you need assistance amending tax returns for your business, you should consult with an experienced Sacramento tax return accountant today. The accounting team at Cook CPA Group possesses years of accounting experience, and we would be honored to utilize that experience to serve you. Filing amended tax returns is an intricate process, but we are here to guide you through it. To schedule a free consultation to discuss your tax situation, call Cook CPA Group at (916) 724-1665.