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Tax Tip Tuesday: Business Tax Returns Will Need More Information

Individual taxpayers reported less identity theft in 2017 versus the 2016 tax filing season. But the opposite is true for businesses, according to the IRS.

The IRS is asking tax professionals to acquire more information on their business return clients to help authenticate returns and prevent identity theft.

All of this data helps IRS determine that the tax return being submitted is the legitimate return filing and not an identity theft return. Some of the new information people may be asked to provide when filing their business, trust or estate client returns include:

  • The name and Social Security number of the company individual authorized to sign the business return — Is the person signing the return authorized to do so?

  • Payment history – Were estimated tax payments made? If yes, when were they made, how were they made, and how much was paid?

  • Parent company information – Is there a parent company? If yes who?

  • Filing history – Has the business filed Form(s) 940, 941 or other business related tax forms?

  • Additional information based on deductions claimed.

Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein

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