This chapter explains the business taxes you may have to pay and the forms you may have to file. It also discusses taxpayer identification numbers.
Table 1-1 lists the benefits of filing electronically.
Table 1-2 lists the federal taxes you may have to pay, their due dates, and the forms you use to report them.
Table 1-3 provides checklists that highlight the typical forms and schedules you may need to file if you ever go out of business.
You may want to get Publication 509, Tax Calendars. It has tax calendars that tell you when to file returns and make tax payments.
You may want to see:
Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040: U.S. Individual Income Tax Return 1040-ES: Estimated Tax for Individuals Sch C (Form 1040): Profit or Loss From Business Sch C-EZ (Form 1040): Net Profit From Business Sch SE (Form 1040): Self-Employment Tax taxmap/pubs/p334-001.htm#en_us_publink100025023
See chapter 12
for information about getting publications and forms.
This section explains three types of taxpayer identification numbers, who needs them, when to use them, and how to get them.taxmap/pubs/p334-001.htm#en_us_publink100025024
Generally, use your SSN as your taxpayer identification number. You must put this number on each of your individual income tax forms, such as Form 1040 and its schedules.
To apply for an SSN, use Form SS-5,
Application for a Social Security Card. This form is available at Social Security Administration (SSA) offices or by calling 1-800-772-1213. It is also available from the SSA website at www.socialsecurity.gov
The IRS will issue an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. In general, if you need to obtain an ITIN, you must attach Form W-7,
Application for IRS Individual Taxpayer Identification Number, with your signed, original, completed tax return and mail both to the following address.
Internal Revenue Service
P.O. Box 149342
Austin, TX 78714-9342
The exceptions are covered in detail in the instructions for Form W-7. If you must include another person's SSN on your return and that person does not have and cannot get an SSN, enter that person's ITIN. The application is also available in Spanish. The form is available from the IRS website at www.irs.gov
or you can call 1-800-829-3676 to order the form.
An ITIN is for tax use only. It does not entitle the holder to social security benefits or change the holder's employment or immigration status.
You must also have an EIN to use as a taxpayer identification number if you do either of the following.
- Pay wages to one or more employees.
- File pension or excise tax returns.
If you must have an EIN, include it along with your SSN on your Schedule C or C-EZ.
You can apply for an EIN:
- Online by clicking on the EIN link at www.irs.gov/businesses/small. The EIN is issued immediately once the application information is validated.
- By telephone at 1-800-829-4933 from 7:00 a.m. to 10:00 p.m. in your local time zone.
- By mailing or faxing Form SS-4, Application for Employer Identification Number.
You may need to get a new EIN if either the form or the ownership of your business changes. For more information, see Publication 1635, Understanding Your EIN. taxmap/pubs/p334-001.htm#en_us_publink100025029
In operating your business, you will probably make certain payments you must report on information returns. These payments are discussed under Information Returns, later in this chapter. You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. You must include the payee's identification number and your identification number on the returns and statements.taxmap/pubs/p334-001.htm#en_us_publink100025030
If you have employees, you must get an SSN from each of them. Record the name and SSN of each employee exactly as they are shown on the employee's social security card. If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. This may occur if the employee's name was changed due to marriage or divorce.
Form W-4, Employee's Withholding Allowance Certificate, is completed by each employee so the correct federal income tax can be withheld from their pay.
If your employee does not have an SSN, he or she should file Form SS-5 with the SSA. taxmap/pubs/p334-001.htm#en_us_publink100025031
If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. If you must report payments to an organization, such as a corporation or partnership, you must get its EIN.
To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification.
A payee who does not provide you with an identification number may be subject to backup withholding. For information on backup withholding, see the Form W-9 instructions and the General Instructions for Forms 1099, 1098, 5498, and W-2G.