Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

My S Corp has gone out of business but I still need file my

2012 return and can't afford...
My S Corp has gone out of business but I still need file my 2012 return and can't afford to hire an accountant.

My accountant agrees that Turbo Tax for business would be a good solution under the circumstances.

I have an MBA degree and have done a lot of the bookkeeping myself over the years. Since I took accounting in the MBA (25 years ago) I believe I am familiar with the basic principles.

In house I have used the accrual method of accounting since it gives me a clearer picture of my financial situation.

However in the past my accountant "converts" my data to cash accounting. I believe this has been to minimize my tax burden. (which falls on me personally)

I think as far as income and expense I am fairly clear how to make the adjustment.

Do I need to adjust the balance sheet also? Would I just "back up" the accounts receivable and payable about 30 days for example?

BTW There will undoubtedly be a significant loss for the S corp for 2012.
Show More
Show Less
Ask Your Own Tax Question
Answered in 8 minutes by:
8/31/2013
jgordosea
jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3,161
Experience: I've prepared all types of taxes since 1987.
Verified

Greetings,

 

For a cash basis corporation there should not be any balance in either receivables or payables.

 

Reduce the income by the receivables balance to get to the cash basis income.

 

Reduce the corresponding expense items by the payables balance to get to the cash basis expenses. (But I have seen some just make one gross adjustment to get to the correct net expenses without being concerned on the correct total in expense categories since for tax purposes so long as the net is correct the correct tax will be computed .)

 

That should give you income and expense that was paid or received during the calendar year for cash basis reporting. Not sure what you used to track income and expenses but some accounting programs allow you to simply toggle between cash and accrual basis for reports.

 

One concern would be that if this is to be a final return that the balance sheet when final will be almost, if not all, zero amounts. Perhaps there will still need to be a 2013 return if there were balances at 12/31/2012 that were not resolved until 2013.

 

Please ask if you need more discussion or clarification.

Thank you.

Ask Your Own Tax Question
Customer reply replied 4 years ago

Thank you I think that makes it pretty clear.


 


I use Quickbooks Pro 2007 so I would imagine it would have this toggle feature.


 


I also have a question about Turbo Tax. Are you well-versed in Turbo Tax for Business/Corp. If so I could ask it as new question.

You are welcome.

 

I do have familiarity with Turbo Tax for Business (but be forewarned that reconciling balance sheets in the program often is an indicator of issues in the accounting that may or may not be able to be resolved with a discussion online).

I have been an Intuit Tax Expert for three of the last five years.

 

You can put my name in the question so other experts let me answer for you. Site rules do say that should be posted as another question. There is a category for Financial Software that I am a qualified expert here, as well as Tax.

 

Again, thank you.

jgordosea
jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3,161
Experience: I've prepared all types of taxes since 1987.
Verified
jgordosea and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask jgordosea Your Own Question
jgordosea
jgordosea
jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3,161
3,161 Satisfied Customers
Experience: I've prepared all types of taxes since 1987.

jgordosea is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

3,161 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Whats the best tax software to file personal and business
Whats the best tax software to file personal and business taxes. we started our firm last year and we have very few clients we would like to pay per tax file because we have about 30 clients only.What… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
502 satisfied customers
I just prrhced the Business turbo tax I it is the wrong one
I just prrhced the Business turbo tax I it is the wrong one for me. I see you have a 60 return policy … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
What are the forms for reporting Rental Income to the IRS on
What are the forms for reporting Rental Income to the IRS on foreign properties - we collect each month? Is this filed separately from our personal returns?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,068 satisfied customers
Reporting pension and social security income on both Forms
Reporting pension and social security income on both Forms 1040 and 1041? … read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
37 satisfied customers
Do you have a recommendation for tax software that I can
Do you have a recommendation for tax software that I can efile with that actually looks like the forms that I would use to file federal tax, been doing paper and am familiar with that look, tried turb… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,791 satisfied customers
Under the new tax plan if my federal adjusted gross income
Under the new tax plan if my federal adjusted gross income is $77,230.00 how much are my federal taxes? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,791 satisfied customers
I have purchased Turbo Tax for a partnership but the one I
I have purchased Turbo Tax for a partnership but the one I received is just for an individual. I need it for a partnership. Please send it to me as soon as possible. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,791 satisfied customers
FOR GUILLERMO: What line on the 1040 income tax return is
FOR GUILLERMO: What line on the 1040 income tax return is used to determine the sponsor's income for Form I-864? Is it line 22: TOTAL INCOME? Or, line 37, ADJUSTED GROSS INCOME?… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
37 satisfied customers
For a CPA about tax rules on pass through entities and
For a CPA about tax rules on pass through entities and partnerships: I have a pass through entity - an LLP (Limited Liability Partnership) with 2 partners. The entity had operated for years as a sole … read more
Carter McBride
Carter McBride
LLM
239 satisfied customers
TURBO TAX SAYS THE IRS OWES ME 1000$ FOR 2016. THEY SAID
TURBO TAX SAYS THE IRS OWES ME 1000$ FOR 2016. THEY SAID THIS IN FEB1 . IN AUG8TH I RECIEVED A FORM FROM IRS SAYING MY SCHOOL HAD NOT SENT A 1098T NOT TRUE BUT IT SAID SCHOLARSHIPS AND GRANTS INSTEAD … read more
emc011075
emc011075
Tax advisor and Enrolled Agent
Bachelor\u0027s Degree
2,739 satisfied customers
Am I on the right path to decreasing my tax burden on the
Am I on the right path to decreasing my tax burden on the income made in commission for unpaid quarterly taxes?The break down is the following for me and frank :so far Eric nurse w-2 full-time earning… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
37 satisfied customers
What are the rules for a utma account. California. Can i pay
what are the rules for a utma account JA: Because laws vary from place to place, can you tell me what state this is in? Customer: california JA: Has anything been filed or reported? Customer: no JA: A… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,068 satisfied customers
I can't find my 2016 Turbo tax return. Help! Dell. None
None since I completed my tax return. All returns from previous years on stored in Documents. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,791 satisfied customers
Can I report rental income in my tax return on a property
Can I report rental income in my tax return on a property thar is owned by my father? He does not live in the US is not a US citizen and can sign a document to allow me to receive the rental… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Adjusted individual tax return for 2014(Iowa),says no
Adjusted individual tax return for 2014(Iowa),says no response to letter of inquiry,disallowed health insurance. deduction.says my wife and I owe$600.00.she called # and was told to show proof of insu… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
37 satisfied customers
I successfully filed my 2016 return with Turbo Tax. Now the
I successfully filed my 2016 return with Turbo Tax. Now the only file references that I find are " Usaved Turbo Tax document" which does not open. Anyway I can get to this doc for use or view? … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Rules on Rollovers (Return of a non-taxed IRA Distribution).
Rules on Rollovers (Return of a non-taxed IRA Distribution). Over 70-1/2 years old) … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
ON A 1041 FORM IS THE TAX FIGURED ON ADJUSTED TOTAL INCOME
STEPHANIE, ON A 1041 FORM IS THE TAX FIGURED ON ADJUSTED TOTAL INCOME MINUS THE 4050 EXEMPTION? … read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
37 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x