ORP, OR LLC TAXES DUE? Win of the Month
A GIANT SAVE FOR AN AUDIT ON A SCHEDULE C BUSINESS
Tax Deadlines Outlined
filing with a Form 1040 on Schedule C have the same due dates as individual taxpayers. Partnerships, S-corporations, and multi-entity LLCs have a due date of March 15 for filing their 1120S and 1065 returns.
However, if you are self-employed, you will follow a quarterly payment plan to the IRS. Your four due dates are: April 15, June 15, Sept. 15, and Jan. 15. For businesses with employees, a
CASE SNAPSHOT
Client: Worried Landscaping Company Owner Type of IRS Issue: Audit
Form 941 is required to be filed quarterly on April 30, July 31, Oct. 31, and Jan. 31.
Tax Year in Question: 2018–2019 IRS Claimed Liability: $230,575.74 Savings: $190,098.01
Because business and individual tax
return due dates and deadlines are
different and vary vastly, it’s important that your calendar is up to date with all tax deadlines. For reference and more information, visit the IRS online at IRS.gov. Do not miss a deadline!
Our client, a successful landscaping company, based out of California, reached out to our team in a panic regarding an overgrown tax bill from an audit for tax years 2018 and 2019. The bill claimed he owed over $230,000 to the IRS. While he was amazing at creating a beautiful oasis for his clients, he struggled with the “office” and clerical end of the business. He had submitted his taxes on time, but by his own admission, in 2018 he “guessed” on some of his deduction claims. Of course, the IRS decided to take a closer look at his returns. Having really dug himself into a hole, he sought out our assistance. The IRS conducted an audit, and the auditor adjusted his returns. When his liability grew to over $230,000 with penalties and interest, he didn’t know what to do. After sitting down with our team, we learned he did NOT have good records. In fact, he didn’t have any records for 2018, thus we decided the best thing to do was to re-create his returns and see where things landed. Our tax return team paired up with our incredible team of bookkeepers to painstakingly go through bank statements, invoices, and emails to pull out all possible costs associated with his business, put them into order, and re-create his return. Due to the fact that the IRS was already conducting an audit for 2018 and 2019, our team re-created his 1040 returns for both years. Thankfully, for tax year 2019, he had hired a bookkeeping service, so the re-creation of that return was much simpler. After the audit was complete, we were able to reduce the IRS’ assessed balance of $230,575.74 down by $190,098.01! He only owed $40,477, which he happily paid as he said, “It means my business is healthy!” Our client has resolved to ensure his tax returns are properly completed and to stay in good standing with the IRS!
INGREDIENTS
• • • • •
24 oz frozen meatballs 16 oz spaghetti noodles 24-oz jar spaghetti sauce
2–3 slices of mozzarella cheese
Sliced black olives
DIRECTIONS
1. Cook frozen meatballs according to package instructions, then keep warm in oven on low heat. 2. In a large pot, bring water to a boil and add spaghetti noodles. Cook until tender and drain. 3. In a small pot, heat spaghetti sauce over medium heat until warm. 4. After everything is cooked, mix noodles and spaghetti sauce together, then put the mixture into a serving bowl. 5. Slice the meatballs in half and mix half of the slices into spaghetti. Top the spaghetti with the remaining meatball slices with the flat sides up. 6. Cut slices of mozzarella cheese into circles and place one slice on each of the flat-topped meatballs. Then, put one black olive over each cheese circle to form the eyeballs. Serve and enjoy!
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