The following information is to remind you of law changes, problem areas and information we will need to prepare your 2009 business tax return.
Problem Areas
The IRS has placed an increased emphasis in a court case this year on actual physical inventory on hand at December 31. Please make sure to physically count your inventory, retain the records and provide us with the accurate total cost of inventory on hand December 31, 2009. Do not include consignments you are holding from other people in this number. In the event of an audit you must be able to provide copies of physical count sheets, so we are this year placing an increased emphasis upon obtaining correct year-end physical inventory amounts.
We also want you to make sure that your corporate minutes are maintained on an annual basis - we do not maintain these forms for you, they are maintained by the officers of the corporation. Of course only S and C corporations are required to maintain minutes, LLC's have no such requirement.
Sales tax audits continue to increase. In general you must pay sales tax on any items you purchase that is not re-sold including office supplies, equipment, online and out of state purchases. You need to charge sales tax on any items you sell except for those customers whom you have a valid exemption certificate on file.
Tax Return 8-Point Information Needed
As usual we also need the following information to prepare your tax return for this year.
- Copies of any new bank loans obtained during the year.
- Copies of any federal or state tax correspondence received during the year.
- Copies of any equipment purchase invoices over $500.
- Loan payoffs, by loan number, of all business loans at December 31.
- Copies of your year-end bank reconciliation(s).
- 12/31/09 Year End Balances of Accounts Receivable $________, Cost of Inventory on Hand $________, Unpaid 941 Deposit for December $________, Unpaid Sales Tax for December $________.
- Year-end summary of business activity hard copy (Balance Sheet & Income Statement).
- Information on any changes in ownership, stock holding, locations or number of stores.
**We are now offering an easy to use online accounting software w/128 bit security. This program would allow the client and accountant to access the needed financials and allow the accountant to help our clients adjust or make financial entries. If you are interested please contact our office and ask about Accounting Relief.
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