Tax Forms Required for Limited Liability Corporations

Tax forms required for a Limited Liability Corporations (LLC) depend on the location of the business, the number of owners, for profit or not-for profit status and the number of employees if any. In the United States the tax documentation required for a LLC is determined by the U.S. Internal Revenue Service (IRS). Various sections of the Internal Revenue Code and Treasury Regulations. This article will outline the primary forms required by U.S. based LLC's for tax filing with the Internal Revenue Service. Each section will deal with specific types of LLC''s.

Single operator or partnership LLCs

A Limited Liability Corporation with one owner and/or operator is the most simple in terms of tax filing forms. The reasons this is so is because income earned through a single owner/operator LLC is not subject to withholdings or separate business filing classification. Consequently the only documents needed for such a business are the one's associated with an individual tax filing and/or sole proprietorships. Some of the tax forms required are provided below.

• Form 1040 (Individual, Joint or Household Tax Filing Form)

• Form 8829 (Expenses for Business Use of Your Home)

• Schedule C (Sole Proprietorship Profit or Loss addendum to 1040)

• Schedule A (Individual, join or household itemized deductions if any)

Limited Liability Corporations with several owners have different filing requirements. These LLC's require different tax forms in addition to standard tax forms such as the form 1040. The tax forms that can be used for an LLC Partnership are listed as follows:

• Form 1065 (U.S. Return of Partnership Income)

• IRS publication 541 may also be of assistance when filing as a partnership

• Form 4562 (Property related documentation of depreciation)

Corporate LLCs

If a Limited Liability is an S or C corporation, the company will be treated as a separate business entity in terms of tax filing requirements.

• Form 1120 (U.S. Corporation Income Tax Return)

• Form 1120S (U.S. Small Business Income Tax Return)

At times during the tax year an LLC corporation may change its structure either from an S corporation to a C corporation or via election of new officers. In both these instances and in other cases, the IRS requires formal filing of the event. For elections and change of business structure the following forms are required.

• Form 2553 (Election by Small Business Corporation)

• Form 8832 (Entity Classification Election)

Not for profit LLCs and LLCs with employees

In addition to the forms required for either the sole owner, partnership or corporation, Limited Liability Corporations with employees require additional tax forms to be file in regard to social security tax withholdings, Medicaid and Medicare tax, retirement deductions etc. A few of the forms commonly filed in regard to employees are the following.

• Form W2 (Employee pay and tax reductions)

• Forms 940 & 941 (Employee tax withholdings within an LLC Partnership)

• Form 1099 (Income paid out as interest, dividend or miscellaneous proceeds)

Companies that are not for profit operations such as 501(c)(3)'s may have employees and be subject to filing the above employee related forms but have different income reporting forms than for profit entities. The primary tax form filed by not for profit LLC's is as listed.

• Form 990 (Return of Organization Exempt form Income Tax)

How to file IRS tax forms

Tax filing for LLC's can be submitted in paper to the appropriate IRS Service Center for one's 

jurisdiction or online via tax preparation software or tax service provider.

To file taxes for an LLC first determine what type of LLC the business is. Either the LLC is a single owner/operator, partnership, corporation or non-profit business. An Employer Identification Number (EIN) may be needed for some LLC Partnerships and LLC Corporations. The EIN can be applied for online via the U.S. Internal Revenue Service and is also required for LLC's managing retirement and benefit plans.

Once the type of LLC has been determined one can download the individual forms and instructions directly from the Internal Revenue Service website if the business is located and operated in the United States by an individual subject to U.S. taxation. Referring to sections of the Internal Revenue Code or Treasury Regulations may only be needed in complex tax situations and my require the assistance of a tax professional for interpretation.

The information in this article has been sourced from the U.S. Internal Revenue Service and can help determine which forms are needed for tax filing. However, the advice and/or consul of the Internal Revenue Service, tax attorney, accountant or tax services agent may also be helpful. If in doubt regarding any of the tax filing procedure or questions arise regarding a specific taxation issue, ex-self employment taxes consult the IRS instruction manuals for the various forms required and then contact a tax professional and/or other reliable tax information source if additional questions remain.

Forms to File if You Can't Pay Your Income Tax

Forms to file if you can't pay your income taxes include payment extension, filing extension, installment payments, bankruptcy circumstances, and the tax return with its additional forms if applicable. Generally if tax can't be paid it is a good idea to file the applicable form relating to your specific situation. 

If you need more time to make payments but don't qualify for financial hardship a form 9465 may be used in some cases. However, if you are simply in doubt of how much tax you owe due to a need to gather information after April 15th a tax extension with estimated taxes due and paid may be more appropriate. Some of the forms that may apply to your situation are listed below:

IRS Form 1127
'Application for extension of time for payment of tax due to financial hardship':. Must be filed by April 15th tax filing deadline. 1040's may not be required when this form is filed however qualification and payment extension time is limited to financial hardship and a maximum of 6 months. Additional and/or supplementary information is required with this form.

IRS Form 656
'Offer in Compromise': This is an offer made to the IRS for individuals and/or households in the process of filing for bankruptcy. Form 656-B contains instructions and guidelines for filing Form 656. A sizable application fee is required for this form and a percentage of the offer amount may also be required.

IRS Form 9465
'Installment Agreement Request': Applications that are approved by the IRS are given a monthly amount due to the IRS. These installments are billed monthly with interest following approval of the installment agreement.

IRS Form 4868
'Application for Automatic Extension': Some payment is still due with application for filing extensions. Remaining balances may be charged penalty fees and interest lower than the standard penalty percentage if not part of accurately estimated tax due as per Form 4868 instructions.

IRS Form 2350
'Application for automatic extension for U.S. Citizens and Residents Residing Overseas': and similar to a form 4868. Specific time of extension requested is listed on the form itself and an interest penalty is incurred for late filing of the extension form.

IRS Form 1040
'U.S. Individual Tax Return': This form is filed with Form 9465 and contains income and adjustment information for the applicable tax year. Some forms such as tax filing extensions explicitly do not require a 1040 at the time extension is filed for.

Form and late payment related tips:

• English and Spanish, the Spanish forms have 'SP' at the end of the form number. For example, Form 4868 would be Form 4868-SP for Spanish.

• Application for installment has a fee associated with it and also charges interest on the remaining balance. For small amounts the interest plus the fee could increase the amount of tax owed significantly.

• Installment payments can be made online for free through the 'Electronic Federal Tax Payment System (EFTS)'. However, payment for new users of this system may not be instant because pin numbers and identification codes are sent via mail.

• Tax filing extensions are different from tax payment extensions. Tax filing extensions still require payment of taxes.

• Personal statements that are considered valid by the U.S. Internal Revenue Service may lead to a waiving of late payment penalty according to Form 2350's instructions.

• If tax can be paid within four months of the April 15th deadline it is more affordable and not necessary to file a form 9465.

Late payments on tax owed to the U.S. Internal Revenue Service usually end up costing more than the initial tax with interest, penalties and fees. Information on tax filing penalties can be viewed at this IRS penalties and interest charges link. Paying on time may be the better option if it is possible. However, in circumstances where payment in full cannot be made by the tax filing deadline, one or more of the above forms may need to be accurately completed and sent to the appropriate IRS service center. 

These service centers are divided by region. In any case, when in doubt and to confirm you are using the right form contacting an IRS service center or tax professional can be of assistance. The IRS contact information can be viewed at the following link for additional information. http://www.irs.gov/help/article/0,id=96730,00.html

Source: http://www.irs.gov

When to Use the IRS 8332 Tax Form

Knowing when to use the form 8332 tax form applies to separated or divorced couples with children, or relatives for whom the non-biological parents are legal guardians. Form 8332 is a U.S. Internal Revenue Service (IRS) document used when filing taxes.

The form involves the right to claim children as a tax benefit on annual tax filing with the Internal Revenue Service (IRS). Specifically, the IRS Form 8332 can 1) transfers rights of exemption and 2) revoke rights of exemption for either a current tax year or future tax year(s).

Form 8332 is used when specific tax criteria are met by both the parents, and the children. The form is titled 'Release/Revocation of Release Claim to Exemption for Child by Custodial Parent' by the Internal Revenue Service.

An example scenario when form 8332 is used is as follows. Children A and B spend over 183 nights at Parent A's primary residence, however Parent A and Parent B have agreed that Parent B will claim both the children as exemptions on their tax return. In order for this to take place the following criteria must be met.

• Both parents must be legally defined as such i.e. guardians or custodians
• Transfer or revocation of rights is authorized via form 8332 or divorce decree
• The parent completing form 8332 is the custodial parent
• Children claimed qualify as dependents
• The parents do not live in the same home and are legitimately separated

When to use the 8332 tax form is also influenced by the time at which the parents became separated and/or divorced. According to form 8332, prior to 2009 form 8332 wasn't absolutely necessary to claim children as an exemption, however it was thereafter and prior to 1984.

The filing of form 8332 by the custodial parent can help remove any confusion or dispute between either parent and the IRS in regard to claiming children as exemptions in the tax filing process. In case of audit by the IRS and depending on the circumstances under which form 8832 is filed, the following documents may be required.

• Divorce decree issued by divorce court
• Marital separation agreement
• Guardianship documents ex. Court order of appointment
• Proof of income and/or expenses
• Adoption papers ex. Adoption certificate

To grant exemption rights for a current tax year only Part I of form 8332 needs to be completed. However, if rights of exemption are granted for the current and/or future years Part I and/or II are required to be completed as Part I is for the current year and Part II is for future years. Part III of form 8332 is reserved for custodial parents who wish to remove rights to exemption in future years only.

The custodial parent's signature, social security number and date of signing is required on the bottom of the form, and the non-custodial parent's name and social security number are required toward the top of the form however a signature is not required of the non-custodial parent.

Source: http://www.irs.gov (Internal Revenue Service)

Guide to Tax Filing Forms

A number of tax return forms may be needed for your tax return, but this depends on your unique tax situation and may only require a Form 1040 EZ tax return. The most common tax form for individual tax filers is the Internal Revenue Service (IRS) Form 1040 which belongs to the 1040 series.

The 1040 has different formats based on complexity of taxpayer financial information and is the primary tax filing form on which information from other forms is recorded. In addition to the Form 1040 are literally hundreds of other forms and publications for different aspects of personal finance as they relate to taxation. Examples of just a few of the many IRS tax forms are below:

• IRS Form 1040A, 1040EZ, 1040 (Individual Income tax return forms)
• Schedules A, C & D (Itemized deductions, Business profit or loss and Capital gains)
• Form 8829 (Home business expenses)
• Schedule SE (Income from self-employment)

There are different IRS tax return forms for different scenarios such as calculating and/or reporting tax credit, estate taxes, tax filing extension request, profit or loss from business or sale of assets and more. There a good chance if an activity involves money, there's a related reporting requirement in addition to an IRS form that facilitates this. In some cases, no forms are required to be filed with the IRS by the tax filer. For example, in years in which no income was received, and no other family or household income applies, a tax return may not have to be filed.

The difference between a 1040a and a 1040

The IRS tax return Form 1040 is an individual tax filing form but can also be used for households and married couples. The Form 1040 comes in three types making it a 'series'. These three types are the 1040EZ. The difference between these three forms is how much information goes on them.

The Form 1040 has the most information and the Form 1040 EZ has the least. Essentially, for tax filers with less complicated finances, the 1040A or 1040EZ can be used. There are also pre and post 1040's i.e. the 1040ES for estimating taxes and the 1040X for amending previously filed 1040s. Types of 1040s can be found at the IRS Forms and Publications page.

When choosing and completing a tax return Form 1040, the 1040 instructions can be quite helpful in illustrating what each line of the from means, and how to use it. The 1040 instructions also provide Schedule forms and worksheets so as to simplify the form search and acquisition for the tax filer. IRS Forms and publications can be acquired in 3 ways, via mail, via internet and via internet download. Some forms and publications may also be picked up at public government administered establishments such as libraries and tax assistance centers.

Knowing which tax return forms to use

To choose the right Form 1040 involves knowing what kind of income, deductions and credits you can report. For standard deductions, with one primary source of income from an employer, and no retirement accounts, mortgages, investments, educational expenses etc. a Form 1040A or EZ may be all that is needed. Essentially, identify your income source(s), then determine which deductions and/or credits you may qualify for. Following this, the form that best facilitates the reporting of this information is probably the better choice.

Some forms and their instructions may not include space to report income or credit that may reduce taxes. This is one of the reasons why it is important to use the correct forms. For example, if a U.S. citizen works overseas and qualifies in a reduction to Adjusted Gross Income through a Modified Adjusted Gross Income, a space may not be available on the Form 1040 to report this.

When there is no clearly marked space to report a tax deduction, adjustment or credit an IRS official should be contacted to determine the proper form to use and the ideal location to put the information. In some cases, information can be written onto the 1040.

Source: http://www.irs.gov (U.S. Internal Revenue Service)