Accounting · Financial planning

Do it yourself taxes

Anonymous

April 13th, 2016

We are an early stage venture (C-Corp registered in Delaware). We had some very modest revenue in 2015 and finished the year with a small loss. We did not have too many transactions (revenue or expense) and maintained everything is a small spreadsheet.

While the tax deadline was March 15, we did file for extension and paid the IRS our estimated taxes. Now we are deliberating whether to file the taxes on our own.

Anyone has any experience/opinion/concerns about it?

If you have filed your C-Corp taxes on you own - any recommendation for tools or services to use (TurboTax, hr block, or alike)?

Avery EA Tax Professional and Xero Specialist

April 13th, 2016

Can I do my own taxes is in the same realm of "Can I fix my own car, do my own plumbing or electrical work"...the answer is yes if you invest in a few specialized tools and do the reading and research. Its also good to know when a project is over your head though...and thats before you take the whole car apart and need to go to work in the morning.

The "in over your head" question in this case is this: Corp taxes were due for 2015 calendar year corporations on March 15. You are posting this question on April 13th. If you've already figured out how to file your own extension and pay your estimated taxes...you're well on your way to being a DIY tax preparer.

If the above dates have just filled you with dread, hire a professional and do not attempt this at home.

Gabriel CFP Partner at Abacus Wealth Partners

April 13th, 2016

You are too late to get an accountant to do it for you.  Turbo Tax Business should be fine.  Don't get mired in this kind of stuff in future.  In July (a quiet time for accountants) establish a relationship with a CPA.  Have her review your 2015 filing and get you on a track to capture the information you will need for 2016.

Cheers

Parag Mehta Enterpreneur, Management professional, IT & Technical Support

April 13th, 2016

taxact.com is little more simple and helpful than turbotax online.. the sooner you file less your penalties will be .. YMMV with online tools.

as Avery and Gabriel already mentioned C Corp taxes are due March 15th of each year,

Peter Weiss President at American Outlook, Inc.

April 13th, 2016

Assuming your fiscal year end was December 31 (the default unless you specified differently when you got your taxpayer ID number or TIN) Gabriel and Avery are right - you already missed the deadline.  The good news is that if you did not make money last year there is no financial penalty assuming you get the return done within a few months; even if you made a little money the penalty is not severe, again assuming you file soon.

There are a number of elections and choices you make on the first tax return.  If you have ambitions to grow the company substantially or bring in outside investors you should find an accountant who understands business accounting and taxes and have them do the return, at least for this year.  since you'll be doing this in May or June (a slower time) you should be able to find someone who is not too expensive.  

If you are planning to go for VC or institutional money do not do this yourself - it will cost you when they do their due diligence.