5 tips to ensure that you use the right tax forms
In order to ensure that you are using the right tax forms for your business you need to do some research. Using the right tax forms for your business also depends on what type of business you have. Certain businesses are required to file personal income tax forms to file their taxes for both business and personal dealings, while other businesses need to file forms that are strictly for businesses and must file their own personal return separately.
To ensure that you are using the right tax forms for state income taxes you first need to know if your state collects income taxes. After doing that research you need to do some research to find out the different tax forms and choose the one that is right for your business. To find out which tax forms are right for the state your business is conducted or incorporated in you can check with your State Tax Commission by mail or by phone or you can find this information on the State Tax Commissions website.
Consult with a tax preparer. Tax preparers will be able to tell you which forms that your business must file. They will know what state forms you will need and what federal forms you will need. They will also be current on the newest tax laws so if there have been any changes in the forms that you need to file they will also be aware of them. Along with the correct tax forms the tax preparer will also know which Schedules and/or attachments your business will need to file with your return. When choosing a tax preparer you will want to use one who is located in your home state so that they are current with your state's tax laws, this is to your advantage because they will not have to research what forms you need.
Buy tax software for business use. Many tax software programs have software for business, as well as for personal use. Tax software is helpfully because it will pick the exact tax forms, schedules and attachments that your business will need based on the information you provide. But before choosing tax software you need to be sure that your company can use tax software to prepare your taxes, most software is not designed for companies who make over a certain amount of money.
Attend income tax seminars or classes for the type of business that you run. These seminars or classes will provide you with everything you need to know about preparing your taxes, including what forms you will need to have to file your federal income taxes, state income taxes and any other taxes that may apply when it comes time to file. These classes also give you other important information regarding taxes and your business so they are good to take.
Do some research online about the different tax forms you might need. You can find out almost everything you need to know about filing tax returns on finance websites. Some of these articles will give you the different forms you are most likely going to need to file based on what type of business you are running.
Just keep in mind that not all business are going to need to file the same forms, so while you might be running a small business and so is your neighbor depending on certain factors you might be filing two different forms. If you still have questions you can contact your State Tax Commission or the Internal Revenue Service to find out more about tax forms that you need to file.