Reporting your income and calculating your federal and state taxes owed each year can be a monumental project for many individuals and business owners.  From making sure you have all prior year tax forms that arrived in the mail to gathering records and receipts for your business as well as staying on top of new tax laws that come out each year, this is a time-consuming process that you probably don’t have time for.  At Holbrook Accounting, we simplify the annual tax reporting process by providing you with a customized checklist of items needed to properly complete your personal taxes and to take advantage of any new programs that may benefit you. Business owners that have utilized our bookkeeping services will have their business tax reporting flow naturally from the electronic books and records that have been kept up-to-date.  By following our process you will increase the chances that your taxes are completed on time and that your tax outcome will be to your maximum benefit. 

During our initial conversation with new clients, we ask key questions to begin gathering the right information, including:

• Are you married?  Do you have kids?
• Do you work as an employee in one or more jobs and have you received all your W-2s?
• Any investment income such as interest income reported on a 1099-INT, dividend income on a 1099-DIV or capital gains on a 1099-B?
• Any retirement or social security income that was reported on forms 1099-R or SSA-1099?
• Did you own any rental properties and have you recorded the rental income and expenses for the year?
• Did you have any ownership in a business, either under your name or registered with the state?  How were the income and expense items recorded for the year?
• Did you receive any K-1s showing your portion of income from a corporation, partnership or trust?

We are fully capable of completing your taxes remotely.  Documents are exchanged using secure links and when tax returns are completed for your review you can sign off on them electronically. We store your tax returns and supporting documents as PDFs in a secure and private manner and you can request copies anytime.

Our team has the credentials and software tools to handle a variety of individual and business tax situations. We specialize in preparing taxes for those involved with investments, real estate holdings, self-employment activities, and a variety of business structures. We also help with year-round tax planning so that you are well positioned for tax season.

We can assist with the following types of business structures:

• C-Corps & S-Corps: Corporations are separate entities from their owners, also called shareholders, and file separate tax returns with their own tax filing deadlines.  C-Corps file a Form 1120 and S-Corps file a Form 1120-S.  S-Corps are a very popular business structure and the profit or loss of the corporation is passed through to the business owner’s personal taxes through a Form K-1. With an S-Corp, profit or loss is allocated to the shareholders based strictly on percent of ownership. The C-Corp tax deadline for tax years ending December 31 is the same as the personal tax deadline, April 15.  However, the deadline to file the S-Corp tax return is March 15 since the K-1 is needed to complete the business owner’s personal taxes.
• Partnerships: Partnerships have two or more partners and file a separate tax return called Form 1065.  These entities allow for more flexible allocation of profit, loss and ownership of capital across the partners. The profit or loss of the partnership is passed through to the partners on a K-1 and is reported on their individual tax returns.  Like the S-Corp return, the deadline to file a partnership return is March 15.
• LLCs:  These are state entities not recognized by the IRS.  Single member LLC income and expenses are often reported as part of an individual tax return, but the owner can also opt to report the LLC as a corporation.  An LLC with two or more owners will typically report as a partnership.
• Trusts & Estates: These special entities are overseen by a trustee or fiduciary and file Form 1041. Income and expenses can be passed through to beneficiaries through a K-1 and they must report these items on their individual taxes.  The normal filing deadline for calendar year estates or trusts is April 15.
• Foreign-Owned Entities: Corporations, Partnerships and LLCs can be owned by non-US residents, and these types of entities have special requirements in terms of estimated tax payments and “reportable transaction” disclosures that must be complied with to avoid potentially large IRS penalties.

The tax experts at Holbrook Accounting have the educational background and a proven process to simplify your year-end tax reporting and take this major annual project off your plate as efficiently as possible.