Business or Profession
IRS Activity Code
This information can be found at
www.naics.com if necessary. The IRS activity code is important for reporting on
your tax returns. This allows the IRS to assess your income and expense ratios against other companies in your industry. For example, realtors will have higher mileage
deductions than retailers.
Business City, State, Zip
Business EIN, or NA
LLC Formation Date, or NA
S Corp Election, or NA
Are there multiple owners or partners in your business? Your spouse will count as a partner if they have any ownership interests in the business as well. If
this applies to you, please detail the other owners with addresses, social security numbers and ownership percentages-
Did you start your business in 2017? If so, did you transfer any equipment, tools, computers, office furniture, etc.
from personal use to business use? Please describe below including values at time of transfer-
Did you have startup costs such franchise fees, equipment purchases, attorney fees, formation fees, etc.? If so,
please describe them below-
During 2017, did you purchase any equipment, office furniture, client lists, etc.? If so, please provide copies of invoices or sales
agreements, and summarize below-
If your business owns a vehicle that you use personally, you might have to consider that benefit taxable income. Unless your business needs a vehicle for nearly
100% business use, you are typically better off owning it personally and getting reimbursed through an Accountable Plan. Please read our tax articles about this at-
There might be situations where charging your company a lease rate for the use of your automobile provides a better tax position than the mileage
deduction / reimbursement.
If you use QuickBooks or MS-Excel for your accounting records, please make sure your bank reconciliations are completed and all transactions are categorized.
Double check your entries after reviewing the rest of the categories in this submit form. Then upload the data file to
client portal. If you are sending a QuickBooks file, please send
us the raw or backup file and NOT the accountant copy. You can also use our Send A File which allows you to securely send your data file without having a client portal. Please ensure your name is in the file such as SmithJoe-ABC Company.xlsx.
If you use online accounting software such as Xero or Wave, or our least favorite, QuickBooks Online, and you feel comfortable giving us access,
please use firstname.lastname@example.org as the email address for the invitation.
Note: If we have to make entries or clean up your accounting records, additional time will be spent in preparing
your tax returns and there will be a small fee added for this service.
Even if you use accounting or bookkeeping software, please review and complete pertinent areas of this Business Worksheet to provide the information not contained in your accounting records.
Sales / Income
* All 1099s must be separately reported on your tax return and tied to your business. If a 1099 is received in your SSN but you use an EIN to file your
tax returns, we will nominate this income from your SSN to your EIN. In all cases, please send all copies of your 1099s so we can properly record these.
Did you receive a 1099-K from a merchant service such as Amazon or Paypal? These forms typically only include gross sales. If you received one, please
describe any personal activity, returns, chargebacks or refunds that are erroneously included on the 1099-K below-
Jan 1, Beg Inventory
Dec 31, End Inventory
The IRS is a bit out of touch (shocking, we know), but to ensure accuracy and proper reporting on your tax returns
here is the list of common expenses in the order that appears on your Schedule C. Additional expenses follow this list.
Meals and entertainment when visiting with a client or prospect is deductible at 50 percent. Please provide the entire amount
spent, and we will reduce the amount according to IRS rules. Meals and entertainment at 100 percent is reserved for things
like company parties and meetings.
Utilities (not home office)
Wages (see below)
The IRS requires paid tax professionals and CPAs to ask all taxpayers who deduct travel, meals and entertainment expenses if they
have proof or supporting evidence of the expense and the business connection.
* Do you have proof of your travel, meals and entertainment expenses?
Shared Expenses (Mileage, Home Office, Cell Phone)
Shared expenses are those expenses that you use both personally and for business. The most common are mileage for your personal automobile, home office expense,
cell phones and internet. It is nearly impossible to consider your automobile, cell phone and internet to be 100% business use unless you own two automobiles,
cell phones, etc. There are two situations for reporting shared expenses. First, if you are a corporation or partnership using this form to submit your
business activities then you must use the Accountable Plan expense reimbursement form. Here is the button for the Accountable Plan submit form-
Second, if you a single member LLC, a husband and wife partnership or a sole proprietor we need two additional forms for deducting automobile expenses and
mileage, and the business use of your home (home office). Once you complete this Business Worksheet, you will be directed to our home page of Online Submit
Forms, or you can click on the fancy buttons below to open a separate browser window-
In addition to the automobile expenses and home office, please tell us the business portion of your cell phone and internet expenses.
Cell Phone (Business Use)
Internet (Business Use)
Health Insurance, HSA, LTC
Self-Employed Health Insurance (SEHI), Long-Term Care (LTC) and Health Savings Accounts (HSA) is a deduction to all small business owners, including coverage for spouse
and family. It is a direct deduction on page 1 of your Form 1040, and is not subjected to income thresholds and phaseouts associated with Schedule A
(good news). However, if these health related expenses DO NOT reduce self-employment taxes unless you have a Health Reimbursement Arrangement (HRA). Please
contact us if you have an HRA. For more information on the savings, use this link-
Also, if you are an S Corporation then these expenses must be handled by adding the amount to Box 1 of your W-2. Please let us know
if this applies to you, and we do NOT perform payroll services for you. For more information use this link-
Sorry, we have to ask. The rule is- if you paid more than $600 in rents, services (including parts and materials) or other income payments to
any individual or LLC in connection with your trade or business, you are required to complete a 1099-MISC. You also must submit it to the IRS and
mail a copy to the recipient. 1099s are typically required to be sent by January 31. Later submissions are allowed but might incur penalties.
1099-MISCs are not required to be sent to corporations.
Did you make payments that require filing a 1099?
If Yes above, have you filed the required 1099s?
If 1099s were required to be filed, and you want us to file them for you please list the recipients name, full address, SSN or EIN,
and the amount paid. Our normal fee is $30 for the first 1099, then $10 each thereafter.
S Corp Election
If you are not an S Corporation but you are earning more than $30,000 per year after expenses, you might want to consider
making an S Corp election. We can retroactively make this election to January 1 2017 and save 6 to 8 percent in taxes. Check out
our KnowledgeBase articles on the Taxpayers Comprehensive Guide to LLCs and S Corps at-
Do you have a SEP IRA or 401k plan? If so, please detail the contribution amounts made throughout the year, the type of
contribution (SEP IRA, 401k profit sharing, etc.), and the dates below-
If you and your spouse operate the business together, but the business is NOT an LLC, partnership or S Corporation, then it
might make sense to split the business activity evenly between taxpayer and spouse to maximize Social Security benefits. So,
if you are a sole proprietor and you want to split activities, describe each person’s role below-
Did you want us to compute the max SEP IRA or 401k contribution?
Do you want guidance on retirement plans?
Jan 1 Cash Balance
Dec 31 Cash Balance
Jan 1 A/R Balance
Dec 31 A/R Balance
Do you recognized income when you are paid (cash based), or when you invoice a customer (accrual based)? It is not uncommon nor is it incorrect
to use an accounting package such as QuickBooks to track open invoices and manage your Accounts Receivable, yet use a cash method of accounting.
Please describe your system below-
Loan Balances (if applicable)
Jan 1 Loan Balance
Dec 31 Loan Balance*
* Please provide an amortization schedule or some other document detailing the principal payment and the interest payment for the year.
During 2017, did you receive any new loans or payoff any loans? If so, please include a detailed payment schedule and describe the circumstances below-
During 2017, did you lend money or make any business loans? If so, please include a detailed payment schedule and describe the circumstances below-
Wages, Owner Draws, Cash Injections, Kids On Payroll
Did you have any employees in 2017 in which you ran payroll, withheld taxes and completed the filings? Please provide year-end summaries from the payroll
service you used (if it wasn’t the Watson CPA Group), and briefly note any comments or issues below-
What is the amount of owner draws or distributions that were paid to the owners in 2017?
Did you inject any cash from your personal funds into the business in 2017 (this is NOT the same as you paying for business expenses with personal funds-
that is technically a reimbursement)? If you transfered money or wrote a check from your personal funds into the business checking account, please tell us how much.
Did you pay your children a wage? If No, have you considered it? There are some excellent tax advantages by doing so. If Yes,
please provide the names of your children on payroll, and the work they performed below-
Did you pay yourself or any owner a wage and issue a W-2?
Did the company reimburse you for any expenses that you personally paid for? If so, please list below-
Did you collect any sales tax in 2017? Does your gross revenue above include sales tax collected? Are all filings current and paid for?
Please provide copies of your sales tax filings (if available) and describe below-
Reimbursements, Accountable Plan
The following questions are used to determine if your company should set up an Accountable Plan to reimburse employees and owners for
job-related or business expenses. There could be some tax advantages for handling these through an Accountable Plan versus taking a
deduction on your personal tax return. Learn more here-
Do you qualify for a home office deduction?
Have you deducted your home office on your prior personal tax returns?
Did the company reimburse you for a home office deduction?
Have you incurred any travel expense including business mileage?
Have you deducted mileage expense on your prior personal tax returns?
Did the company reimburse you for any travel expense or business miles?
Does the company own a vehicle that you use for personal use?
Please select the tax year that this information is associated with. In addition, please enter your name so we can group your submissions together plus your email address.
Click the Submit button below to securely and safely send this information to us. You can submit as many forms as needed. If you later discover an error- simply re-submit your
information and check the box below letting us know.
Is this submit form an update to a previous submission?
Tax Year 2017