Sole Proprietor / LLC “Tax Ready” Documents
Please submit no later than March 15 (or the day after Labor Day, if extended)
The following guide helps you determine which information Accountability Services will need to prepare your Sole Proprietor / LLC Tax Return(s).
To avoid additional time & cost for your preparation, be sure to ONLY upload PDF, Word or Excel files. JPG (photos), Mac or Google files are difficult or impossible to convert and can delay your preparation.
A. Tax Preparation Agreement
B. Financial Reports
After accounts have been reconciled, we need 3 reports saved in an EXCEL workbook (with 3 tabs) from your accounting system:
- Balance Sheet – Previous Year Comparison (12/31 from last fiscal year and the year before)
- Profit & Loss Statement for the last fiscal year, 1/1 to 12/31. Be sure to provide any foreign sourced (non-USA) revenue.
- General Ledger report of all transactions by account for the last fiscal year, 1/1 to 12/31
Note: Run these reports on a cash basis (unless required to file on an accrual basis). We can provide easy instructions on how to run these, so if in doubt, send our Tax Team a request.
- If you are unable extract these reports, upload your .QBM modular / portable file to your folder and send a separate Service Request to email@example.com with your username & password. Do not upload an accountant’s copy.
- If we have online access to your accounting system, we will log in to secure the Excel reports upon receipt of your executed Tax Preparation Agreement.
- If you do not use QuickBooks, provide information in Excel, organized in Profit & Loss Statement format.
- If you do not use QuickBooks, provide detailed Fixed Assets purchases for the year.
C. Payroll Information
We need copies of all W-2s generated for each employee, along with the W-3 or Payroll Summary report.
D. Business Home Office Information
(Applicable if a portion of your home is used exclusively for business)
- Square Footage: total of ALL sf of your home (if changed from last year)
- Square Footage: total of your office only (if changed from last year)
- List of home expenses: utilities, repairs, HOA dues, rent, etc. **NOTE: If you want to simplify your home office recordkeeping, you may be eligible to take the new flat deduction
E. Business Vehicle Information
- Mileage: total of ALL miles driven for the year
- Mileage: total of all miles driven for business only
- Vehicle year, make, model
- Vehicle expenses (gas, car washes, insurance, lease payments, interest on loan, maintenance)
- Invoice for new vehicle purchase showing trade-in value, sales tax paid, purchase price
F. Do you need to prepare and send your 1099s to your independent contractors / vendors?
We can do this for you. Please send a request to firstname.lastname@example.org and we’ll get that going!
G. Other Tax Forms and Information
- Tax Preparation Agreement
- W-2 Forms
- Your IP PIN: Identity Protection Personal Number, if the IRS sent you one
- Copy of your Driver’s License (state-mandated requirement)
- Proof of Economic Impact Payments received for both spouses. Copy of Notices 1444, IRS transcript, or bank statements, etc. as proof of exact amounts received and dates received
- Proof of Child Tax Credit Payments received. Copy of IRS Information letter 6419, or transcript or bank statements as proof of exact amounts received and dates received
- 1099 Forms (Ex: 1099-NEC, 1099-MISC, 1099-INT, 1099-R, 1099-B, 1099-S, etc.). Full copy of your year-end Investment statements. Please submit the entire package.
- 1099-LTC for Long Term Care (also send all medical expenses – see #36)
- 1099-K from your merchant services companies
- Provide crypto currency transaction reports, including income, expenses, and original cost basis.
- If you have stock options through your employer: provide the Realized Gain (Loss) Year End report, or Supplemental Stock Plan Lot Detail report
- Pension distributions: explicitly indicate on any 1099-R if it is a distribution from a State or Federal pension
- If your Form 1099-R forms indicate that the taxable amount is “unknown” provide supporting details (examples: Qualified Charitable Donations, Court-Ordered distributions, etc.)
- K-1 Forms from estates and trusts
- K-1 Forms from S-corporations and partnerships: If this is the first year we are preparing your tax return, we must receive your basis schedules. You or your former CPA should have this information.
- K-1 packages from Trusts, Publicly Traded Partnerships, etc. Please provide the complete package including the cover letter from the partnership; compliance for these K-1s is complex –and expensive for you, as the taxpayer.
- All foreign income from foreign financial institutions, corporations, self-employment, etc
- Form 1098-Mortgage Interest
- Real Estate Taxes paid
- If you refinanced a property (home, investment property, etc.), we will need a copy of the Closing Statement
- Form 5498 related to your tax-free IRA, SEP retirement, or Health Savings Account (HSA) contributions
- Copy of your Auto License Renewal Form showing RTA (Seattle area) tax paid for autos
- Proof of quarterly estimated tax payments you made specifically for last year. We need either (1) copy of the EFTPS / IRS report, or (2) copies of cancelled checks. DO NOT include taxes applied from last year’s tax return. We need all dates and individual amounts paid each date.
- If you expect a refund, send us your checking account Bank Name, Routing #, Account #
- If you expect to pay and want the IRS to auto-deduct your tax from your checking account, send us your checking account Bank Name, Routing #, Account #
- Let us know if you are interested in having us calculate your maximum allowable retirement (IRA, SEP, or Roth contributions)
- Cost basis for Sales of Securities. If you had > 10 sales for the year, please download the transactions into an Excel worksheet. Click here to request a Securities template.
- Charitable donations (separately list cash from non-cash). Please provide receipts for (1) auctions, (2) vehicle donations, and (3) stock donations. Otherwise, we do not need your receipts. For cash gifts, send us a total. Be sure to include your annual total funding to a Donor Advised Fund. For non-cash gifts, Goodwill provides an easy to follow guide. Non-cash gifts require date of donation, fair market value, name of charity, and descriptions.
- Please provide a report or provide a list or amount of any Qualified Charitable Donations (QCDs) made from your IRA
- Form 1098-T: University or College educational expenses – if box 1 is blank, submit proof of payment
- Form 1098-E: Student Loan Interest paid (in your name)
- Form 1099-Q: Payments made from a Qualified Educational Program (e.g., 529 plan)
- If you bought a vehicle or made significant home improvements, or built a home last year, provide sales tax amounts on materials only (without labor)
- HSA contribution and distribution tax forms (Form 5498-SA and Form 1099-SA)
- Long term care insurance premiums
- Net out-of-pocket medical costs. We do not need your receipts; please provide only your totals for (1) Prescription medicines and drugs, (2) Doctors, dentists, nurses, (3) Hospitals, outpatient centers, nursing homes. Also send us your medical-miles driven.
- Dependent care statements with EIN and address of provider
- If you had a household employee (nanny, driver, aide, et al), provide copies of W-2s and all www.care.com/homepay paperwork
- Rental income + expenses for each property (QuickBooks Profit & Loss Statement and Balance Sheet). **ALSO: please specifically tell us if you spent 250 or more hours working on your rental last year. The definition includes: advertising, negotiating/executing leases, verifying tenant applications, collecting rent, daily operation, management, repair, purchasing materials, supervising employees and independent contractors.**
- Did your Rental business make any payments last year to vendors that would require you to file Form(s) 1099? (e.g., landscapers, painters, maintenance, web developers, attorneys). If ‘Yes,’ did you or will you file all required Forms 1099?
- How many days was each property rented? How many days did you use the property for personal use?
- Closing Disclosure or Settlement statements for all properties, purchased, sold, or rented for the first time last year.
- For properties sold: Form 1099-S, original purchase price, list with costs of improvements.
- Foreign Bank Account information and interest earned on those accounts. Failure to disclose can result in a $10,000 penalty! Click here to request a Foreign Bank Accounts turnaround worksheet.
- Gifts greater than $15,000 total to any one person during the year
- Any other tax forms and/or miscellaneous deductions
- Let us know if your marital status changed, new child, moved, etc.
- If you are a new client, if you haven’t yet done so, please provide a full copy of last year’s tax return with all schedules, and dates of birth for all family members.
Foreign Companies – if you personally 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 last year (USD)
- Name of Bank(s)
* We can perform the exchange rate conversions for you.
How do I submit my documents?
Tax documents can be submitted in digital or hard copy format.
Option #1: Digitally
Your Accountability Services CLIENT PORTAL provides a fast, easy, secure, password-protected system to safely and confidentially upload your tax documents and files.
- Go to the Tax Year > Source Documents folder
- Click the + Upload Files button
- Drag or browse files on your computer to Upload
Once you have uploaded ALL tax documents through your client portal, please notify us at email@example.com. Our tax team will let you know if we have everything we need from you to get started.
VERY IMPORTANT: Please DO NOT send files via email. We cannot guarantee the security or confidentiality of any files transmitted via email.
Option #2: Provide Accountability Services access to your system
If we have online access to your accounting system, we can log in to secure necessary financial reports upon receipt of your executed Tax Preparation Agreement.
Option #3: Drop-off, Mail or Fax
Accountability Services is more than happy to accept your printed documents or to receive them via fax.
Events or Situations that will drive up the cost of your tax return
- Lack of bookkeeping or poor bookkeeping (messy books), resulting in inaccurate or unintelligible financial statements
- Rental property
- K-1s from Publicly Traded Partnerships
- 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