Answers · S corporations
What Records Should an S Corporation Keep?
A defensible S corporation return starts with reconciled books, payroll, assets, loans, distributions/contributions and basis records.
How it works
The rule, and what it turns on.
Year-end close should verify all material balance-sheet accounts and owner transactions.
Example
Tie W-2 wages to P&L, loan balances to statements, fixed assets to invoices and distributions to equity/basis.
Common mistakes
What we see go wrong, and what we do instead.
- P&L-only tax prep.
- No basis schedule.
- Personal expenses in business accounts.
A better approach
- Use a standardized S corp year-end close checklist.
Authority
Where this comes from, so you can check it.
IRC §6001; Treas. Reg. §1.6001-1; IRS Publication 583; IRS Small Business Recordkeeping guidance. IRC §§1361-1379; Form 1120-S and instructions.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
Also asked
The same question, the other ways people put it.
- What Financial Statements Are Needed for an S Corporation Tax Return?
- Common S Corporation Bookkeeping Mistakes
- Common S Corporation Tax Return Mistakes
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