The tax deadlines depend on the tax returns being filed. See below for common tax return filing deadlines for calendar year taxpayers:

First things first, try not to stress out over IRS correspondence. Although it is important to respond timely and accurately to notices received from the IRS, not all of these notices are legitimate balances due or audits of taxpayer returns. The IRS sends correspondence for a myriad of reasons that may not have a negative impact on you as a taxpayer. This includes requests for more information, notification of delays in processing returns and identity verification. We have found the IRS to be incorrect in many cases; so, it is recommended that you get with your tax professional immediately to assess the severity of the correspondence and to assist with timely resolution. The worst thing you could do is ignore the correspondence. Rarely does it fix itself and burying it away could cost you a significant amount more in penalties and interest by not resolving it up front.

One of the easiest and most flexible business entities to form is an LLC. An LLC provides asset protection while having the flexibility to be taxed as a sole proprietorship, partnership or S corporation. Each option has its benefits whether it is simplicity in operation, flexibility in ownership structure or tax avoidance strategies. There is no “one size fits all” option and as such, it is recommended that you sit down with your tax professional to evaluate what is the best fit for your needs.

For tax purposes, the statute of limitations is generally three years from the date you file the tax return or two years from the date you actually pay the tax that is due. Generally, you are advised to retain your tax records for three years and to retain your employment tax records for four years. The following are instances where the general rule does not apply:

• You claimed a loss from worthless securities or bad debt deduction (7 years)
• You underreported income that is more than 25% of gross income on the return (6 years)
• You did not file a tax return or you filed a fraudulent tax return (Indefinitely)

Certain important business records should be retained permanently:

• Business ledgers
• Check registers
• Annual reports
• Business meeting minutes
• By-laws and amendments
• Business organizational documents
• Real estate and asset records (at least three year after disposition)

The following business records can be retained for seven years as a best practice:

• Accounts receivable and payable ledgers
• Invoices
• Expense reports
• Bank statements
• Credit card statements
• Human resource files

Financial statements are commonly required by investors, lenders and regulators. These stakeholders require differing levels of assurance in the preparation of the financials statements. Some allow for client-generated financials to be provided while others require businesses to engage accounting firms for the preparation of compiled, reviewed or audited financial statements. There is a significant difference in the level of assurance and level of work that is required to be performed in assuring accurate financial statement presentation between these options. The following is a simplified table that compares the differences: