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  1. #1
    Join Date
    Nov 2018
    Posts
    2

    Default How to File Past Tax Returns for a Business

    Hi everyone,

    I have a business but I have never filed taxes on/for the business...
    I, this year 2018, requested an EIN for the business. I set up an LLC and I want the LLC to be taxed as an S-Corp.

    I did (and continue to) make money for the past 2 years in my business...

    How do I go about filing back taxes for 2016 and 2017?
    Do I just download the forms for 2016 & 2017 and complete them and mail them into the IRS?

    I don't want to cause myself an audit or any IRS headaches... but I do want to be legal and file taxes properly for the past two years.

    Looking forward to hearing from you all and thanks in advance!

    K

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Taxes for 2016 and 2017

    You'll only be able to use the LLC/S Corp for 2018.

    For 2016 and 2017 you have two options:

    1 - If you filed any personal income tax returns at all, you can file amended returns and add Schedules C and SE along with any other business tax forms.

    or

    2 - If you filed no returns for those 2 years you'll have to start from scratch.

    You'll pay penalties for those two years in addition to your tax.

    I strongly suggest you pay a tax pro to handle the back taxes and help you set up what you need for the current year. You'll probably have a penalty for not filing estimated tax for 2018.

    If you have state and/or local income taxes, take care of them, too.

    Your headache will come when you have to write the checks to the IRS. Other than that, as long as you have kept careful documentation of purchases, sales, expenses, that'll probably be that.

  3. #3
    Join Date
    Nov 2018
    Posts
    2

    Default Re: Taxes for 2016 and 2017

    Thanks adjusterjack, I found this very helpful!

    I am actually currently planning on selling this business in 2019. When I sell this business and the buyer wants to see the business tax returns during due diligence, i.e. he may be getting a loan to buy this business.
    What will I have to give him/bank? For example, if my business was a traditional LLC, then the business taxes would be my 1040 and Sched C. Well, I would not want to give a stranger nor his bank my personal (1040) tax return.
    If I file my LLC as S-Corp and file the 1120S, would that suffice for him to give to his bank for his loan?

    Thanks again!

    K

  4. #4
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Taxes for 2016 and 2017

    Quote Quoting Kc2018
    View Post
    Thanks adjusterjack, I found this very helpful!

    I am actually currently planning on selling this business in 2019. When I sell this business and the buyer wants to see the business tax returns during due diligence, i.e. he may be getting a loan to buy this business.
    What will I have to give him/bank? For example, if my business was a traditional LLC, then the business taxes would be my 1040 and Sched C. Well, I would not want to give a stranger nor his bank my personal (1040) tax return.
    If I file my LLC as S-Corp and file the 1120S, would that suffice for him to give to his bank for his loan?

    Thanks again!

    K
    All that would be needed is the Schedule C and the Schedule SE. Therefore you can likely avoid giving them the whole tax return. You can also redact your SSN any pages of the return that you give them.

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