Business Tax Preparation · Verified Directory
Business Tax Preparation — LLCs, S-Corps, Partnerships & C-Corps
Business returns are unforgiving — wrong entity election, missed K-1 deadline, or under-withheld estimates can cost more than the return itself. CPAZenith connects you with CPAs and EAs who file 1120, 1120-S, 1065, and complex Schedule C returns every season — and represent clients when the IRS comes calling.
What's included
What business tax preparation includes
Federal & state returns
1120 (C-Corp), 1120-S (S-Corp), 1065 (partnership/multi-member LLC), Schedule C — federal and every state you have nexus in.
K-1 issuance
Partner and shareholder K-1s issued by deadline. Every K-1 matched to ownership %, basis, and distribution tracking.
Quarterly estimates
1120-W, 1040-ES projections that hit safe harbor without overpaying — recalculated mid-year as numbers change.
Owner compensation strategy
Reasonable W-2 wages for S-Corp owners, 199A QBI optimization, retirement contribution layering.
IRS notice & audit support
Built-in resolution support — if the IRS questions the return, the prep firm represents you.
Extensions & late-file rescue
Form 7004 extensions and reasonable-cause letters for missed deadlines (penalty: $245/partner or shareholder/month).
IRS notices handled
Decode the letter — and the deadline
| Notice | What it means | Next step |
|---|---|---|
CP14 Balance due — first notice | The IRS says you owe tax. Interest and the failure-to-pay penalty are already accruing. | Verify the balance against your return, then pay, request an installment agreement, or dispute within 60 days. |
CP2000 Underreporter — income mismatch | Third-party documents (1099s, W-2s, K-1s) don't match what you filed. Not an audit — yet. | Respond by the deadline with corrected figures or supporting docs. Ignoring it triggers a statutory notice of deficiency. |
CP504 Final notice of intent to levy state refund | Account is in collections. The IRS can levy state tax refunds and will pursue further collection action. | Open a collections case: installment agreement, currently not collectible, or offer in compromise. |
LT11 / Letter 1058 Final notice of intent to levy — 30 days | The IRS can levy wages, bank accounts, and seize assets after 30 days. Triggers your CDP hearing rights. | File Form 12153 within 30 days to request a Collection Due Process hearing and pause levy action. |
Letter 525 / 915 Examination report (audit results) | Audit findings proposing changes. You have 30 days to agree, disagree, or request Appeals. | Get representation before responding. Appeals is almost always preferable to Tax Court if you disagree. |
Notice CP90 / CP297 Notice of levy on federal payments | IRS will levy Social Security, federal contractor payments, or other federal benefits. | Same 30-day CDP window. A pro can negotiate a collection alternative and request levy release. |
Resolution paths
Back taxes, installment agreements, OIC, penalty abatement & more
Back taxes & unfiled returns
File the last 6 years of missing returns first — the IRS won't entertain any resolution until you're compliant.
- Pull wage & income transcripts to reconstruct missing data
- File substitute returns over IRS-prepared SFRs (almost always lowers the balance)
- Stop the failure-to-file penalty (5% per month, capped at 25%)
Installment agreements
Monthly payment plans for taxpayers who can't pay in full but can pay over time.
- Guaranteed (under $10K) and streamlined (under $50K) plans skip financial disclosure
- Partial-pay installment agreement (PPIA) for balances you can't fully pay before CSED
- Setup fee waived or reduced for low-income taxpayers
Offer in compromise (OIC)
Settle for less than owed when reasonable collection potential is below the balance.
- Doubt as to collectibility — the most common path
- Calculated as net realizable equity + future income (12–24 mo. multiplier)
- About 30–40% acceptance rate nationally; far higher with proper Form 433 preparation
Penalty abatement
Reduce or remove failure-to-file, failure-to-pay, and accuracy-related penalties.
- First-Time Abatement (FTA) — automatic if clean compliance history for prior 3 years
- Reasonable cause — illness, natural disaster, reliance on a preparer, records destroyed
- Statutory exceptions for erroneous IRS written advice (Form 843)
Audit representation
Power of attorney (Form 2848) puts a licensed pro between you and the IRS examiner.
- Correspondence, office, and field audits — including TCMP and EITC exams
- Appeals representation if you disagree with the examination report
- Tax Court petition prep when settlement isn't possible
Currently Not Collectible (CNC)
Temporary collection hold when paying anything would create financial hardship.
- Stops levies and garnishments while in status 53
- Requires Form 433-F or 433-A financial disclosure
- CSED clock keeps running — balance can expire while in CNC
Who you hire matters
CPA vs Enrolled Agent vs Tax Attorney
| Type | Scope of practice | Best for | Typical cost |
|---|---|---|---|
| CPA | Unlimited IRS representation. Strongest on tax planning, business returns, and complex accounting. | Business owners, multi-entity filers, anyone whose case crosses tax + accounting + financial statements. | $200–$450/hr; $2K–$10K typical resolution engagement |
| Enrolled Agent (EA) | Federally licensed by the IRS, unlimited representation rights. Tax-only focus. | Personal collections cases, installment agreements, OIC, audit representation when no litigation risk. | $150–$300/hr; $1.5K–$6K typical resolution engagement |
| Tax Attorney | Licensed lawyer with tax specialty. Attorney-client privilege. Required for Tax Court litigation. | Criminal exposure (eggshell audits), foreign accounts (FBAR), Tax Court cases, complex appeals. | $350–$700/hr; $7.5K–$25K+ for litigation matters |
When to hire tax resolution help
Signals you shouldn't go it alone
- You formed an LLC or corporation in the last 12 months
- You crossed $50K in net profit (S-Corp election worth evaluating)
- You have partners or shareholders who need K-1s
- You operate in more than one state (nexus = filing obligation)
- You missed a quarterly estimate and want to avoid underpayment penalties
- You received a CP162 (late partnership/S-Corp return) or 1120 balance-due notice
Documents to prepare
What to gather before your first call
- Every IRS notice or letter received (front and back)
- Last 3 years of filed tax returns
- Wage & income transcripts (we can pull these via POA)
- Bank statements — last 3 months
- Pay stubs or P&L for self-employed (last 3 months)
- List of monthly living expenses (Form 433 categories)
- Asset list — home, vehicles, retirement accounts, business equity
- Form 2848 Power of Attorney (we prepare this)
FAQ
Common questions
When are business tax returns due?
S-Corps (1120-S) and partnerships (1065): March 15. C-Corps (1120) and Schedule C sole props: April 15. All extendable six months via Form 7004 — but extensions delay filing, not payment.
What does business tax preparation cost?
Schedule C / single-member LLC: $400–$900. Partnership 1065: $900–$2,500. S-Corp 1120-S: $1,200–$3,500. C-Corp 1120: $1,500–$5,000+. Multi-state, consolidated, or international filings cost more.
What if my business owes more than I can pay?
Pay what you can with the return, then set up an installment agreement immediately. For balances under $25K, online payment agreements are usually approved within minutes. Larger balances require Form 433-B financial disclosure.
Do I need separate preparation and resolution firms?
Not usually. Most full-service business CPAs handle both — they already have your books and entity history, which makes resolution faster and cheaper than starting fresh elsewhere.
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