What to submit no later than February 15 (or August 12 if extended)
Tax Preparation Agreement
Financial Reports authorized by management / owners of the company. After accounts have been reconciled and Management / Owners agree that the financial statements provide a fair representation of the business results for the year, we need 4 reports saved in an EXCEL workbook (4 tabs) from your accounting system:
- Balance Sheet – Previous Year Comparison (12/31/2021 and 12/31/2020)
- Profit & Loss Statement for 1/1/2021 – 12/31/2021. Be sure to provide foreign sourced (non-USA) revenue
- Breakout report – Sales by State, if applicable
- General Ledger report of all transactions by account (Last fiscal year 1/1/2021 to 12/31/2021)
Note: run these reports either on cash or accrual basis – depending upon the basis your company reports financial data to the IRS. We have easy instructions on how to run these, so if in doubt, send our TaxTeam a request!
Also: please send us FINAL reports. Changes submitted to Accountability Services after you initially submit your reports may not be able to be made if too close to the filing deadline. Additional charges apply for re-work required as a result of any changes you make to your financial statements.
- If your system is hosted either at Swizznet or QuickBooks Online and we have access, we will log in to secure the Excel reports upon receipt of your executed Tax Preparation Agreement and ‘green light’ notification that your books are reconciled, closed and ready for us to begin work.
Note: We expect tax law changes in 2022. Throughout this year’s preparation process, we may need to ask you seemingly ‘silly’ questions related to certain revenue streams and business transactions. We are committed to optimize your situation to get the best tax result for you and your company.
Does your US company own a Foreign company?
Is your US company owned by a Foreign company?
If yes, scroll down 2 more sections for more information.
Other Supporting Documentation and Information (US and Foreign):
- Forms W-2 for all employees, along with the W-3 or Payroll Summary report
- Information pertaining to changes in ownership (dates, percentages, new owner names/addresses/SSNs)
- For any Officer’s Salary paid that was less than $56,500 for last year, please send us a paragraph description of the calculation or methodology you used to determine the salary
- Percentage of time each Officer devoted to the business
- Summary of Employee Benefits offerings (Health Insurance, Retirement, etc.)
- Advise us of any address change for business or K-1 owners
- Please send us your answers to these 2 new questions on the tax return related to your vendors:
Did your business make any payments last year that would require you to file Form(s) 1099?
If ‘Yes,’ did you or will you file all required Forms 1099?
9. If first year filing as an S-Corporation, copy of the S Election Acceptance letter from the IRS
If not yet sent, please send us copies of all governing documents (including updates from last year) along with the following information:
- Operating Agreement or Bylaws
- Redemption Agreements
- Merger or Purchase / Sale Agreements
- Shareholder Agreements, including Loan and Buy-Sell Agreements
- Accountable Reimbursement Plan
- Fixed Asset Capitalization Policy
- Percentage of time each Officer devotes to the corporation
Foreign Companies – if you (personally) or your company own 10%+ stock in a foreign company, please also provide:
- Foreign entity comparative Balance Sheet (in Excel) translated to English and USD*
- Foreign entity Profit & Loss Statement (in Excel) translated to English and USD*
- Copy of the foreign tax return(s), translated to English
- Exchange rate utilized
- Summary of all intercompany transactions by type
- Description of all intercompany transactions and methods utilized to determine amounts
- List of all payments paid to shareholders (dates, amounts, payee) along with GL account name(s)
- Let us know where manufacturing or services occur? In US? Or in the foreign country?
- Bank Information for which you have signatory authority:
Name of Bank(s)
Highest balance in 2021 (USD)
* We can perform the exchange rate conversions for you. We like to give our clients cost savings opportunities for things they can do themselves.
New clients to Accountability Services for Tax Year 2021 – please provide a full copy of last year’s tax return with all schedules, if not yet provided.
How do I submit my files?
You have several options for submitting your tax documents.
Option #1: Digitally
To protect your confidentiality and to give you a handy way to share documents and files safely, you may upload your tax records to your client portal. Unlike email, this method of file-sharing and storage is highly secure and password-protected.
To access your portal, login under Client Portal at www.accountabilityservices.com. Go to Client Portal > Login.
It’s quick and easy to upload your documents:
- Go to the Tax Year > Source Documents folder
- Click the + Upload Files button. You can also Drag files, or Browse files
- Navigate to your files on your hard drive and Upload
Once you have uploaded ALL of your tax documents to your client portal, please notify us! Send an email to TaxTeam@accountabilityservices.com. At that point, we will know we have everything from you and we can start.
IMPORTANT NOTE: Please DO NOT send files to us via email. We cannot guarantee either the security or the confidentiality of any files you transmit via email.
Option #2: We will Access Your Portal
If we have online access to your accounting system, we will log in to secure the financial reports upon receipt of your executed Tax Preparation Agreement.
Option #3: Drop-off, Mail or Fax
You can always deliver your documents and information to us via traditional, hard-copy ways.
Events or Situations that can drive UP the cost of your tax return
- Lack of bookkeeping or poor bookkeeping (messy books), resulting in inaccurate or unintelligible financial statements
- Prematurely providing financial statements that the owners did not sign-off / approve ahead-of-time
- Rental property
- Sale of other property
- Correcting mistakes made if you previously self-prepared
- Form 3115 for changes in accounting method (examples: Missed Depreciation or going from Accrual to Cash, etc.)
- Form 8824 for deferred gains on like-kind-exchanges (example: exchanging one rental for another, etc.)
- Forms 5471 and 5472 for those owning stock in foreign privately-held corporations
- Forms 114 and 8938 for disclosure of foreign bank accounts and asset reporting