Frequently Asked Questions
I recommend keeping tax documents 7 years for both. Individuals should keep tax returns and important paperwork for at least 7 years. Similarly, Corporations should keep tax returns, payroll records, and major financial statements for 7 years.
Keep things like corporate formation papers, big contracts, and real estate records forever.
How long should we keep copies of our Corporate and Individual tax returns and related records?
It depends. If it’s your primary residence, you may qualify for exclusions that reduce or even eliminate taxable gains. But rental or investment properties follow different rules.
Keeping records of your purchase price, improvements, and selling costs will help make the process easier and ensure your taxes are calculated correctly. Even if you don’t owe taxes, you may still need to report the sale.
Do I have to pay taxes when I sell my home?
Payroll taxes are amounts you withhold from employee wages and pay to the government, including federal income tax, Social Security, and Medicare. Employers are responsible for withholding, remitting, and paying their portion of taxes on time.
Filing requirements include forms like 941, 940, and W-2s, while state and local obligations may vary. Mistakes can result in penalties and interest, so many small businesses choose to use payroll services or accounting professionals to ensure compliance and save time.
What do I need to know about payroll taxes for my small business?
Most tax-exempt nonprofits must file an annual Form 990 with the IRS to report income, expenses, and other key financial information.
The type of Form 990 depends on the organization’s size and revenue: Form 990-N (e-Postcard) for small nonprofits, Form 990-EZ for mid-sized, and Form 990 for larger organizations.
Timely filing is essential to maintain tax-exempt status, and accurate recordkeeping helps ensure compliance and transparency.
What are the filing requirements for nonprofits?
It’s best practice to collect a W-9 from any vendor you plan to pay $600 or more in a calendar year for services. The form provides the vendor’s taxpayer identification information, which you’ll need to accurately prepare Form 1099 at year-end. Collect it before you make the first payment to help ensure compliance and avoid penalties.
As a small business, when should I collect a W-9 from a vendor?
When should I consult an expert?
Reach out to an expert whenever you’re unsure—getting guidance early can save time and stress.