Are you filing all your tax returns?
As a sole proprietor or the owner of an LLC, you may think that the only tax return that you need to file is a schedule C on your personal tax return (1040). But is this actually correct? The IRS provides that the categories of tax returns that a business must file are
- Income tax
- Estimated taxes
- Self Employment tax
- Employment Tax
- Excise Tax
Income Tax
All businesses except partnerships must file an annual income tax return. Partnerships file an information return.
Estimated taxes need to be completed and filed on a quarterly basis. More on estimated taxes are covered in this post.
Self Employment tax
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.
Generally, you must pay SE tax and file Schedule SE (Form 1040 or 1040-SR) if either of the following applies.
- If your net earnings from self-employment were $400 or more.
- If you work for a church or a qualified church-controlled organization (other than as a minister or member of a religious order) that elected an exemption from social security and Medicare taxes, you are subject to SE tax if you receive $108.28 or more in wages from the church or organization.
Employment Taxes
If you own a business and have employees, you need to pay employment taxes. The following are the taxes that you need to pay on behalf of your employees.
- Social security and Medicare taxes
- Federal income tax withholding
- Federal unemployment (FUTA) tax
Excise Tax
This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following.
- Manufacture or sell certain products.
- Operate certain kinds of businesses.
- Use various kinds of equipment, facilities, or products.
- Receive payment for certain services.
Form 720 – The federal excise taxes reported on Form 720, consist of several broad categories of taxes, including the following.
- Environmental taxes.
- Communications and air transportation taxes.
- Fuel taxes.
- Tax on the first retail sale of heavy trucks, trailers, and tractors.
- Manufacturers taxes on the sale or use of a variety of different articles
Form 2290 – There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Report the tax on Form 2290. For additional information, see the instructions for Form 2290 .
Form 730 – If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering. Use Form 730, to figure the tax on the wagers you receive.
Form 11-C – Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering.