Tax Returns

Tax Returns Prepared by Accountants Knowledgeable in Day Trading, Stock and Tax Software

Traders Accounting is a resource to many individuals looking for knowledge on trader status and taxation. We are industry-leaders for the active trader and have experience preparing income tax returns for active day traders. A traditional accountant or box store front tax firm may not have the expertise necessary to deliver results that specifically cater to the day trader.

There are hundreds of forms and schedules designed to provide information to the IRS. It can be challenging for the average tax payer to determine which form or schedule is used to report what information. Below are some of the forms and schedules that we see when preparing our clients' returns.

Form 1040 U.S. Individual Income Tax Return

The Form 1040 is filed to report income, deductions, credits, etc., which are attributable to individuals. The form is generally due on April 15, 2010 but, can be extended six months. An extension of time to file the return is not an extension of time to pay the tax due. Also, filing for an extension of time is not an audit trigger. A hastily prepared and inaccurate income tax return filed by the original due date is much more likely to be audited than a carefully prepared one filed by the extended due date.

Form 1065 U.S. Return of Partnership Income

The Form 1065 is an information return filed to report income, expenses, credits, etc., which are attributable to partnerships such as General Partnerships, LLCs taxed as partnerships, and Limited Partnerships. The form is generally due on the 15th day of the fourth month following its year end but, can be extended five months. Filing for an extension of time is not an audit trigger. A hastily prepared and inaccurate income tax return filed by the original due date is much more likely to be audited than a carefully prepared one filed by the extended due date.

Form 1120 U.S. Corporation Income Tax Return

The Form 1120 is filed to report income, expenses, credits, etc., which are attributable to a C Corporation. The form is generally due on the 15th day of the third month following its year end but, can be extended six months. An extension of time to file the return is not an extension of time to pay the tax due. Also, filing for an extension of time is not an audit trigger. A hastily prepared and inaccurate income tax return filed by the original due date is much more likely to be audited than a carefully prepared one filed by the extended due date.

Form 1120S U.S. Income Tax Return for an S Corporation

The Form 1120S is filed to report the income, expenses, credits, etc., which are attributable to an S Corporation. The form is generally due on the 15th day of the third month following its year end but, can be extended six months. An extension of time to file the return is not an extension of time to pay the tax due. Also, filing for an extension of time is not an audit trigger. A hastily prepared and inaccurate income tax return filed by the original due date is much more likely to be audited than a carefully prepared one filed by the extended due date.

Form 5500-EZ Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan

Form 5500-EZ is used by one-participant plans to satisfy annual reporting and filing obligations. A plan whose only participants are married couples can also qualify to file this form. The form is generally due on the last day of the seventh calendar month after the plan year end but, can be extended 2½ months. Filing for an extension of time is not an audit trigger. A hastily prepared and inaccurate return filed by the original due date is much more likely to be audited than a carefully prepared one filed by the extended due date.

Form 1041 U.S. Income Tax Return for Estates and Trusts

Form 1041 is generally used to report the income, deductions, etc., which are attributable to an estate or trust. The form is generally due on the 15th day of the fourth month following the year end but, can be extended five months. Filing for an extension of time is not an audit trigger. A hastily prepared and inaccurate income tax return filed by the original due date is much more likely to be audited than a carefully prepared one filed by the extended due date.

Form TD F 90-22.1 Report of Foreign Bank and Financial Accounts

Form TD F 90-22.1 is filed to report a financial interest in, signature authority, or other authority over financial accounts in foreign countries. The form is generally due on or before June 30th of the succeeding year.

Form 4797 Sales of Business Property

Form 4797 is filed as an attachment to other forms such as Form 1040, Form 1065, and Form 1120. The form is used to report gain or loss from various types of transactions. We commonly see the form used by taxpayers who have elected the Mark-to-Market method of accounting.

Form 6781 Gains and Losses Form Section 1256 Contracts and Straddles

Form 6781 is filed as an attachment to other forms such as Form 1040, Form 1065, and Form 1120. The form is commonly used to report gain or loss from section 1256 contracts and straddles under section 1092. We commonly see the form used by taxpayers who trade regulated futures contracts.

Schedule D Capital Gains and Losses

The Schedule D is filed as an attachment to other forms such as Form 1040, Form 1065, and Form 1120. The form is generally used to report gain or loss from the sale of capital assets. We commonly see the form used by taxpayers who have not elected the Mark-to-Market method of accounting.

Schedule C Profit or Loss From Business (Sole Proprietorship)

The Schedule C is filed as an attachment to other forms such as Form 1040. The schedule is generally used to report the profit or loss from a sole proprietorship. We commonly see the schedule used by taxpayers who qualify as "traders in securities" and do not trade through a legal entity.

Schedule E Supplemental Income and Loss

The Schedule E is an attachment to other forms such as Form 1040. The schedule is generally used to report income or loss from rental real estate, royalties, and pass through entities. We commonly see the schedule used by taxpayers who are members of a partnership or who own rental properties.

Schedule K-1 Share of Income, Deductions, Credits, etc.

The Schedule K-1 is filed as an attachment to forms such as Form 1065, Form 1120S, and Form 1041. It is used by pass through entities to communicate the amount of income, deduction, credits, etc. the entity passed through to the members/shareholders/beneficiaries/etc. We commonly see the forms issued to members of LLC's taxed as partnerships.