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Tax Return Review

Small Business Tax Return Review Services

While 85% of the personal tax returns we review are at or above par, we find that less than 5% of all Corporate Tax Returns, Partnership Tax Returns, and personal tax returns that contain self-employment, independent contractor, or Schedule C income meet the minimum acceptable standards.  Within the first five minutes of our review, we typically find several thousand dollars worth of tax savings strategies that had been overlooked, several errors, and several instances of reporting items in a way that inflated your risk of being audited.

We will perform a thorough review of your previous year's small business tax returns, looking for many items that can be improved upon, including but not limited to:

  • Entity selection - Do you have your business organized as the most appropriate entity type (S Corp, LLC, C Corp, Partnership, Sole Proprietorship, etc) or can we help reduce your tax bills, reduce your audit risk, and improve your asset protection

  • Expense category balances - Do any of your expense category amounts appear too low, indicating that you may have overpaid your taxes?  Do any of your expense category amounts appear too high, indicating that your audit risk is higher than it needs to be?

  • Missing expense categories - Based on your industry, does it appear as if any expense categories were overlooked, indicating that you may have overpaid your taxes?

  • Miscategorization of expenses - Do any of your expenses appear to have been classified in the wrong expense category, indicating that you may have overpaid your taxes and your audit risk is higher than it needs to be?

  • Improper expense category terminology - Has improper wording been used for any of your expense categories, indicating that your audit risk is higher than it needs to be?

  • Profit vs. Salary Analysis - As the business owner, are you classifying too high a percentage of your profit as salary, indicating that you are overpaying your payroll taxes?  Are you classifying too low a percentage of your profit as salary, increasing your audit risk?

  • Asset capitalization analysis - Have your business assets been properly accounted for?  Did you own any assets prior to starting your business that you are now using in your business?  If so, we want to set these assets up in order to maximize your tax savings.

  • Depreciation analysis - Are you taking full advantage of depreciation rules such as Bonus Depreciation, Section 179 Depreciation, Accelerated Depreciation, etc. in order to minimize your tax bills while reducing your audit risk?

  • Balance Sheet Analysis - Has your accountant properly classified Officer Loans, Shareholder Distributions, Paid-In Capital, etc. in order to ensure that you do not face large tax bills when distributing monies to yourself, closing the business, or selling the business?

  • Cash Basis vs. Accrual Basis - Is your business reporting on the correct basis in order to minimize your tax bills?  Is your accountant reporting your activity properly based on your current reporting basis?

  • Cost of Goods Sold vs. Expenses - Is your accountant making the most efficient use of the Cost of Goods Sold classification versus the Expense Classification?

Upon completion of the above in-depth small business tax return review, we will provide you with a detailed report of our findings.  We will also review your previous year's personal tax returns at the same time we review your small business tax returns.

We take care of your books for you, so you can get back to the job of running your business and generating profits.
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We offer payroll solutions that meet your business's needs and enable you to spend time doing what you do best--running your company.
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We offer a variety of services to help make sure that you are taking full advantage of Quickbooks' many features.
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We're here to help you resolve your tax problems and put an end to the misery that the IRS can put you through.
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We offer one-on-one guidance and a comprehensive financial plan that helps manage risk, improve performance, and ensure the growth and longevity of your wealth.
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© Michels & Hanley CPAs, LLP 2021