Tax Preparation & Compliance

The modern Form 1040 is deceptively simple on its face but incorporates dozens of schedules and forms for comprehensive tax reporting. Our individual return services include: Core Form 1040 Preparation: • Schedule A — Itemized deductions (medical, taxes, interest, charitable) • Schedule B — Interest and dividend income reporting • Schedule C — Sole proprietorship income and expenses • Schedule D — Capital gains and losses • Schedule E — Rental, partnership, S corporation, and trust income • Schedule SE — Self-employment tax calculation Specialized Individual Returns: • Form 8949 — Detailed securities transactions • Form 4797 — Sale of business property • Form 6251 — Alternative Minimum Tax • Form 8606 — Nondeductible IRA contributions and Roth conversions • Form 8960 — Net Investment Income Tax (3.8% surtax) We ensure all elections are properly made, loss limitations are calculated (basis, at-risk, passive activity), and all available deductions are claimed.

Business entity taxation requires understanding complex attribution rules, reasonable compensation standards, and entity-specific requirements. We prepare returns for all entity types: C Corporation (Form 1120): • Corporate income tax at 21% flat rate • Accumulated earnings tax planning (IRC § 531) • Personal holding company analysis (IRC § 541) • Dividend planning and timing strategies S Corporation (Form 1120-S): • Built-in gains tax calculations for converted corporations • Shareholder basis tracking and reporting • Reasonable compensation documentation • Distributions vs. loan characterization Partnerships & LLCs (Form 1065): • Partner capital account maintenance • Special allocation documentation • Guaranteed payment treatment • Hot asset and Section 751 analysis Our business return preparation includes Schedule K-1 preparation and distribution, state filing requirements, and estimated tax payment calculations.

Operating across state lines creates complex filing obligations. Each state has unique rules for: Nexus Determination: • Physical presence analysis • Economic nexus thresholds (post-Wayfair) • Factor presence standards • P.L. 86-272 protections for solicitation activities Apportionment Methods: • Single sales factor states • Three-factor formula (property, payroll, sales) • Market-based vs. cost-of-performance sourcing • Throwback and throwout rules State-Specific Compliance: • Composite returns for nonresident partners/shareholders • Pass-through entity tax elections (SALT cap workaround) • State-specific credits and incentives • Combined/consolidated reporting requirements We maintain current knowledge of all 50 states' tax requirements and coordinate federal and state positions for consistency.

Global operations and foreign investments trigger extensive reporting requirements with severe penalties for noncompliance. Our international services include: Foreign Account Reporting: • FBAR (FinCEN 114) — Foreign bank accounts over $10,000 • Form 8938 — FATCA reporting of specified foreign assets • Form 3520 — Foreign trust and gift reporting • Form 8865 — Controlled foreign partnership reporting Controlled Foreign Corporations (CFCs): • Form 5471 — Information return for CFC shareholders • GILTI (Global Intangible Low-Taxed Income) calculations • Subpart F income analysis • Section 962 election for corporate rates on GILTI Foreign Tax Credits: • Form 1116 — Foreign tax credit computation • Credit vs. deduction analysis • Carryforward/carryback optimization • Treaty benefit coordination PFIC Compliance: • Form 8621 — Passive foreign investment company reporting • QEF and mark-to-market elections • Excess distribution calculations

Sometimes extensions are strategic; other times they're necessary. When prior returns need correction, we handle amendments efficiently: Extension Filing: • Form 4868 — Automatic 6-month individual extension • Form 7004 — Business entity extensions (varies by type) • State extension coordination • Estimated payment calculations to minimize penalties Extensions are filing extensions only—tax payments are still due by the original deadline. We calculate and coordinate payments to minimize underpayment penalties under IRC § 6654 (individuals) and § 6655 (corporations). Amended Returns: • Form 1040-X — Individual return amendments • Form 1120-X — Corporate return amendments • Superseding returns — Filed before original deadline • Protective claims — Preserve refund rights during litigation Common amendment triggers include missed deductions, incorrect filing status, overlooked credits, and IRS adjustments requiring corresponding state amendments.

Beyond standard individual and business returns, we prepare specialized filings requiring specific expertise: Estate & Trust Returns (Form 1041): • Distributable net income calculations • Trust accounting income vs. tax income reconciliation • Beneficiary K-1 preparation • Generation-skipping tax compliance Estate Tax Returns (Form 706): • Asset valuation and discounts • Portability elections • QTIP and marital deduction planning • Charitable deduction optimization Gift Tax Returns (Form 709): • Annual exclusion tracking • Lifetime exemption utilization • Split-gift elections • Valuation discount documentation Tax-Exempt Organizations: • Form 990 — Information return for exempt organizations • Form 990-PF — Private foundation returns • Unrelated business income (UBIT) calculations • Public charity vs. private foundation status Payroll Tax Compliance: • Form 941 — Quarterly employment tax returns • Form 940 — Annual FUTA return • Form W-2/W-3 preparation and filing • Form 1099 series reporting

Every return we prepare undergoes rigorous review to ensure accuracy and maximize your tax position: Multi-Level Review: 1. Preparer completes return with full documentation 2. Senior reviewer verifies calculations and positions 3. Technical review for complex issues and elections 4. Partner/manager sign-off on all returns Documentation Standards: • Workpapers supporting all significant positions • Audit trail for all calculations • Prior year comparisons for consistency • Election documentation and filing Error Prevention: • Diagnostic software review for common errors • Cross-reference verification (K-1s match partnerships, etc.) • Statute tracking for carryforwards • E-file rejection resolution protocols This process mirrors Big 4 quality standards while maintaining the personalized service entrepreneurs deserve. Every return reflects our professional standards and your specific situation.