Whether you’re a corporation or a small business owner, the IRS has paperwork that needs your attention. It is subject to a number of tax laws, such as federal and state taxes on sales, real estate, and equipment, payroll taxes for PEO clients, and employee withholding taxes. Knowing about these forms can help you avoid errors and save you time, money, and help you run a hassle-free business. On the IRS website, a single quick search yields more than 900 different results. You don’t need to be aware of the majority of these kinds because they are for very specific niches. However, there are 10 forms that you must be familiar with before filing your taxes or you will spend most of your time correcting IRS Forms so you could submit an error-free return.

1. Form 1040

Forms 1040, 1040EZ, and 1040A will be the key tax forms you pay attention to. This is the form where you should focus on totaling all of your sources of income and recording all of your deductions. There are 70 different lines on the two pages that make up the longest version of this form.

People with very straightforward tax situations can use Form 1040EZ. This form should be used if you are not claiming any tax deductions or credits. Remember that you must have a total taxable income of less than $100k. Because this form is very simple, you can complete this form without a professional’s assistance.

2. Form W-2

One crucial tax document, the W-2, lists the exact sums paid to your employees for a given calendar year. Additionally, it lists all statutory deductions and taxes deducted from employees’ pay for the same time frame.

Paystubs and Form W-2 should not be confused. The documents range in the time period they cover, but they do share one thing in common: they provide information about an employee’s compensation and deductions. Paystubs are given out at the end of each payment period, while W-2 forms are sent out annually.

3. Form W-3

It is submitted by the employer to detail the tax deductions made from employee wages. The form is also used to determine whether you owe the IRS money and need to file taxes. This form calculates federal payroll taxes and deposits them on a quarterly basis.

4. Form W-9

In order to verify a person’s name, address, and taxpayer identification number (TIN) for employment or other income-generating activities, the Internal Revenue Service (IRS) uses a W-9 form. Either a resident alien or a person who meets the criteria for U.S. citizenship may request the confirmation. The w-9 form requests a taxpayer identification number and its certification.

5. Form I-9

Verify an individual’s identification and employment authorization using Form I-9 before hiring them for a job in the US. Each person a U.S. employer hires for employment in the country must have a fully filled-out Form I-9. Both citizens and noncitizens fall under this. The form must be filled out by both employers (or approved employers’ agents) and employees.

6. Form W-4

The IRS Form W-4 is a tax form that employees must complete in order to calculate their tax liability. The form is used by both employers and employees to determine how much income tax will be deducted from pay.

How much income tax an employee will pay on their salary is determined by Form W-4. The employee completes this form and gives it to their employer. This data is then used by the employer to compute their taxes, which are ultimately paid to the IRS.

7. Form 1120

This form is utilized by domestic firms to:

• Report their earnings, profits, losses, credits, and deductions.

• Calculate their tax obligation.

8. Form 1065

In order to record their revenue, gains, losses, deductions, credits, etc., partnerships must file an information return using Form 1065.

A partnership “passes through” any earnings or losses to its partners but does not pay taxes on its revenue. On their tax returns or other information returns, partners must include partnership items.

9. Form 941

Employers use Form 941 to:

• Report any taxes that were deducted from an employee’s paychecks, such as Social Security or Medicare taxes.

• Payment of the employer’s share of Social Security or Medicare tax.

10. Form 4506-T

To obtain information about tax returns, use Form 4506-T. Taxpayers who use a tax year that starts in one calendar year and ends in the next must submit Form 4506-T in order to obtain a return transcript.

Final Words

To properly submit your taxes, it’s imperative that you keep up with these forms. You must be aware of the repercussions of filing late. Living in constant fear of an audit when your taxes are due is the last thing you should be doing.