OMSAI.com FAQ

Business Taxes:

1.1 Company Info:

1.2 Financial Statements:

1.3 Expenses Sheet:

1.4  Payroll Expenses:

1. Information Needed from Client to do the Business Taxes.

1.1 Company Info:

For company info either SS-4 (Federal Tax id) Copy, For S corporation 2553 form etc.

Or State Incorporation Papers.

1.2 Financial Statements:

Ideally the Client should give the financial Statements (Balance Sheet, and profit Loss statements).

We need

a. Balance Sheet at the beginning of the year and End of the year.

Assets (checking accounts, cash, inventory) =liabilities+owner's equity.

b. Profit loss statement for the year.

c. last year tax return to complete schedule L, M1 and M2.

d. partners basis's sheet: cash contributions, distributions, withdrawals.

e. all the partners names, addresses, SSN numbers.

1.3 Expenses Sheet:

 If the client has not given we need to create one based on the info we have.

Ask the client to fill the below Expenses sheet. Expenses should be given category wise for the whole year. The below excel sheet can be used as reference.

I90_Expenses_excel.xls

For list of Business Expenses the Client can use the following word documents also. He can use below two word documents to fill the I90_Expenses_excel.xls

I108_VEHICLETRAVELENTERTAINMENT.doc I107_BUSINESSPROFESSIONALDEDUCTIONS.doc

1.4 Payroll Expenses:

1.4.1. The w-3 form should have total Wages paid to all employees.

1.4.2. The FICA (Social Security and Medicare taxes) for Employer part can also be calculated from W-3 form.

The same info can also be found from 941 forms for 4 quarters.

1.4.3. Federal Unemployment tax can be found from yearly 940 reports.

1.4.4. State Unemployment tax, insurance: We need reports for all 4 quarter for each state to find this info. Example for Virginia this is called VEC form.

1.4.5. Payroll info (Verify this and make sure this matches with the Financial Statements given by the Client). Else we need to adjust the Financial Statements.

1.4 Vendor Payments:

1099 Copies and 1096 Copies should be given. Else fill the info in the

I90_Expenses_excel.xls.

Please see this document and the attachments for most common business expenses. You can use the below forms as reference. Please call us if any questions www.omsai.com. Its always better to use only ony business account
(Check card) for all your business expenses. This will help in the year end tax filing and record keeping purposes. Please check our new business checklist in this FAQ.

For Sole Proprietorship, Partnerships or Coporations these the basic expenses that can be deducted.

(1) Schedule C. See attachment for complete Schedule C.

(2)1120 S


From tax software:

Tax Tips:

1. If you expect to receive 1099 in future, its better to pay estimated taxes for federal and state every quarter to avoid paying penalty. If you have any questions feel free to call us.

2. Its always better to take less exemptions when filling out W-4 with the employer. In that way you don’t end up paying taxes at the year end and also chances of getting a refund increases. Please fill out a new form W-4 with your payroll department and decrease the number of exemptions claimed.

3. Defer your taxes by opening a Retirement Account like Roth IRA or Traditional IRA. If need help in opening an Retirement Account or need more information, Please call us and we can help you setup one. Else you can contact your bank they should have some kind of Retirement Account. You have till April 15 this year,  to contribute to your Retirement Account for the previous year.

attached files: I90_Expenses_excel.xls, f1040sc.pdf, I324_Business Taxes DocumentsNeededfromClient.doc, f1120s.pdf, I108_VEHICLETRAVELENTERTAINMENT.doc, I107_BUSINESSPROFESSIONALDEDUCTIONS.doc