Is it hard to do end of the year taxes for an s-corp?

Question

If we have more than 300,000 in sales, and are closing the business at the end of the year? I just hate paying someone 200 an hour for a few hours of work...

Answer 1

I'd hire a CPA, and did when we had an S-corp. I prepare personal income taxes, so am reasonably knowledgeable about basic tax law, but still had a CPA do the return for the S-corp, and consider it money well spent.

Answer 2

I had surgery a year ago,, the doctor that did the surgery no doubt made it look easy. For a person that has filed out a 1120S form it is not very hard,, but for someone that does not know tax law or anything about the form,, it would be a nightmare. Maybe you could shop around for someone to do your return.. or if you think you want to try,, you should be able to find some tax software that will include the 1120S and K1 forms for around $100.
When you dissolve your S corp,, don't forget to file papers with the state you are incorporated in to dissolve the corp legally. It will cost a few bucks to do it,, but save in long run.

Answer 3

ummm well if u have not filed an extension yet...you will already ahve some penalties ...also how did the shareholders file their tax returns personally since with an s-corp the k-1's (where the inc/loss is staed for each s/h) needed to be reported on the s/h personal return...
as far as difficulty...how much do you understand about individual returns? if u can do those with a bit more time you very well could do the corp return....but there are several schedules involved as well as you need to have last years return aso that you can do the balance sheet for this yr

and make sure if you are closing the corp...that you do so with the secretary of state as well...most think that by checking the final box on the tax return that the corp is closed...this is not the case it must be filed all on its own...good luck to you

Answer 4

It isn't hard if you are already familiar with Form 1120S, but the nature of your question implies that you are not. Based on that and on the fact that the business is shutting down, I would HIGHLY recommend having a tax professional help prepare the final return. In the 1120S instructions, the IRS estimates that it takes an average of 80 hours to learn about, prepare, and assemble the 1120S and related forms, then it takes an average of 28 additional hours just to do the same for all of the Schedule K-1s that have to be given to the shareholders.

Bottom line: it would probably be worth the money (and the time savings and lower stress for yourself) to have a tax pro take care of everything; they can probably even help you file the necessary forms to dissolve the corporation. Good luck! :-)

Answer 5

Not if you keep good records. They are due March 15th, You can file for an extension if necessary.

Answer 6

depends.
you can do it if you try