What the Tax Prep Documentation Generator actually produces

S-CORPORATION TAX PREPARATION CHECKLIST — 2024 [INCOME DOCUMENTATION] ☐ W-2 Forms for owner salary ($85,000) — for Form 1120-S, Schedule E ☐ 1099 forms (clients, vendors, other income sources) — Schedule 1, Line 1 ☐ Bank statements (all accounts, year-end) — income verification ☐ Sales/revenue records or accounting software reports — Schedule 1, gross income ☐ Shareholder loan documentation — Schedule L (balance sheet) ☐ Shareholder distributions summary (2024) — Schedule M-2 ☐ Beginning and ending retained earnings — Schedule M-2, L [PAYROLL & COMPENSATION] ☐ Q1, Q2, Q3 payroll summaries — RECEIVED ☐ Q4 payroll summary — MISSING, URGENT ☐ Quarterly payroll tax deposits (941 filings) — Form 941 reconciliation ☐ W-2 wages verification — Schedule A (Form 1120-S) ☐ Officer/shareholder compensation documentation — reasonableness test [BUSINESS EXPENSES] ☐ Equipment purchase invoice ($14,500) — Section 179/depreciation schedule ☐ Depreciation schedule from prior year — Form 4562, Schedule D ☐ Home office documentation — square footage, allocation percentage, utility bills — Form 8829 ☐ Health insurance premiums ($6,200) — S-Corp shareholder-employee deduction ☐ Rent/lease agreements and payments — deductible business expense ☐ Utilities, insurance, supplies receipts — general business deductions ☐ Professional services (accounting, legal) — deductible expenses ☐ Vehicle/mileage logs (if applicable) — Form 4562, Schedule C equivalent [SHAREHOLDER MATTERS] ☐ Shareholder loan repayment schedule — MISSING, MEDIUM PRIORITY ☐ Loan interest calculation — deductible on corporate return ☐ Shareholder capital contribution documentation — basis tracking ☐ Distribution history (dates, amounts) — Schedule M-2, L [CREDITS & DEDUCTIONS] ☐ Qualified Business Income (QBI) calculation worksheet — Form 8995/8995-A ☐ Estimated tax payments made in 2024 — Form 1120-S, Page 2 ☐ Business-use property documentation — depreciation basis ☐ R&D credits documentation (if applicable) — Form 6765 [COMPLIANCE & RECONCILIATION] ☐ Year-end bank reconciliation — MISSING, URGENT ☐ Fixed asset register — reconcile to Schedule D, Form 4562 ☐ Shareholder basis worksheet — for Schedule K-1 accuracy ☐ Corporate minutes or documentation of distributions — audit support ☐ Prior year 1120-S return (2023) — carryforward items verification ☐ State and local tax filings/registrations — nexus verification [FINAL VERIFICATION] ☐ All K-1 schedules reviewed by shareholder — Schedule K-1 (Form 1120-S) ☐ Estimated 2025 income and deductions — planning purposes ☐ Entity classification confirmation (S-Corp status current) — Form 2553 on file ☐ QBI deduction eligibility confirmed — W-2 wage/property limitations

DOCUMENTS RECEIVED — MARGARET L. OKONKWO (S-CORPORATION) — 2024 [INCOME CATEGORY] Owner W-2 Salary: $85,000 • Reported as business income for S-Corp purposes • Subject to payroll tax (FICA, FUTA, SUTA) • Required for Schedule A (Form 1120-S) — W-2 wages reconciliation [DEDUCTION CATEGORY] Health Insurance Premiums: $6,200 • S-Corp shareholder-employee health insurance deduction • Deductible on Form 1120-S (reduces corporate taxable income) • Does not reduce shareholder's self-employment tax (S-Corps exempt) • Allocate to Schedule J (deductions), Line 14 equivalent Equipment Purchase: $14,500 • Requires fixed asset capitalization and depreciation analysis • Potential Section 179 expensing election (up to $1,160,000 limit in 2024) • Alternatively: MACRS depreciation (5-year or longer per asset type) • Must complete Form 4562 and Schedule D (Form 1120-S) • Depreciation amount TBD pending invoice detail and asset classification Home Office Deduction: Claimed • Requires Form 8829 calculation and substantiation • Methodology needed: simplified method ($5/sq ft, max $300) or actual expense • Supported by: square footage, utility bills, rent/mortgage allocation • Deductible on Form 1120-S, reduces taxable income • Status: Supporting documentation not yet received [PAYROLL SUMMARY] Q1-Q3 Payroll Summaries: RECEIVED Q4 Payroll Summary: MISSING — Critical for annual reconciliation [TOTALS TO DATE] Gross Compensation: $85,000 Documented Deductions (confirmed): $6,200 + equipment TBD Estimated Deductions (pending): Home office (amount TBD)

Dear Margaret, Thank you for providing the initial documentation for your 2024 S-Corporation tax return. We have received your owner salary information ($85,000), health insurance premium records ($6,200), equipment purchase receipt ($14,500), and Q1–Q3 payroll summaries. This is a strong starting point, and we appreciate your organization. We want to highlight a few important tax items from what you've provided. Your health insurance premiums of $6,200 are deductible on your corporate return and reduce your business taxable income. The equipment purchase of $14,500 is a significant asset that requires capitalization and depreciation scheduling—depending on its nature and your income level, you may be eligible to expense it entirely under Section 179, or we may depreciate it over time using MACRS rules. We'll confirm the best approach once we review the purchase invoice detail. Your home office deduction is also a valuable deduction, though we'll need to confirm whether you're using the simplified method ($5 per square foot, capped at $300) or actual expenses to maximize your benefit appropriately. To complete your return accurately, we need three critical documents. First, please provide your Q4 2024 payroll summary so we can reconcile your total W-2 wages for the year and properly report them to the IRS. Second, send us your year-end bank reconciliation—this ensures all income and expenses are properly accounted for and prevents timing issues. Third, if you have any shareholder loan activity (advances to or repayments from the company), we need a repayment schedule to properly reflect these on the corporate balance sheet and determine if any interest should be deducted. For your home office deduction, please send us either (1) a detailed list of actual office expenses (utilities, rent allocation, insurance, maintenance) with supporting receipts, or (2) confirmation that you'd prefer the simplified method along with your dedicated office square footage. We'll also need the equipment purchase invoice to confirm the asset type and cost basis for depreciation purposes. Our target completion date is [DATE]. Please send the missing items by [DATE - 5 business days] to stay on schedule. Once we receive these documents, we'll prepare your Form 1120-S corporate return and your Schedule K-1 for your personal return within 5 business days. As an S-Corporation shareholder, you should also be aware that your basis in the company is tracked through your capital contributions, distributions, and allocated losses or income—we'll send you a basis worksheet with your final return package for your records. Please don't hesitate to call with any questions. We're here to help. Best regards, [Preparer Name]

MISSING DOCUMENTS — PRIORITY LIST [URGENT — Required for Filing] 1. Q4 2024 Payroll Summary • Description: Payroll register or payroll processor report for October–December 2024 showing gross wages, federal/state tax withholdings, FICA taxes, and net pay • Purpose: Verifies total W-2 wages to be reported on Form 1120-S, Schedule A; reconciles with W-2 copies and quarterly 941 filings • Deadline: Within 5 business days • How to Obtain: Request from payroll processor (ADP, Guidepoint, QuickBooks Payroll, etc.) or retrieve from accounting software; alternately, compile from last pay stub of Q4 2. Year-End Bank Reconciliation • Description: Complete reconciliation of all business bank accounts as of December 31, 2024, showing opening balance, deposits, withdrawals, outstanding checks, deposits in transit, and ending balance • Purpose: Verifies accuracy of reported income and expenses; ensures all transactions are captured; supports Schedule L (balance sheet) and income schedules • Deadline: Within 5 business days • How to Obtain: Obtain December 2024 bank statement; reconcile against accounting records using bank reconciliation feature in QuickBooks, Excel, or manually [MEDIUM PRIORITY — Required for Accurate Return Preparation] 3. Shareholder Loan Repayment Schedule • Description: Documentation of any loans from shareholder to corporation or advances repaid in 2024, including date advanced, amount, interest rate (if any), and repayment dates/amounts • Purpose: Supports Schedule L (balance sheet), determines deductibility of shareholder-paid expenses, and calculates basis adjustments; interest is deductible on Form 1120-S if properly documented • Deadline: Within 7 business days • How to Obtain: Review business checking account deposits (shareholder contributions), loan agreements, and canceled checks; compile spreadsheet with dates and amounts [MEDIUM PRIORITY — Required for Deduction Substantiation] 4. Equipment Purchase Invoice/Receipt • Description: Complete invoice or receipt for the $14,500 equipment purchase showing item description, purchase date, cost, and asset classification • Purpose: Determines whether Section 179 expensing applies, establishes depreciation basis and recovery period, and supports Form 4562 and Schedule D (Form 1120-S) • Deadline: Within 7 business days • How to Obtain: Retrieve from vendor email, purchase order system, or accounting software; alternately, request duplicate invoice from vendor [MEDIUM PRIORITY — Required for Home Office Deduction] 5. Home Office Documentation • Description: Either (a) detailed list of actual home office expenses (utilities, Internet, rent/mortgage interest allocation, insurance, repairs, maintenance) with 2024 receipts and year-end statements, OR (b) confirmation of dedicated office square footage and election of simplified method • Purpose: Calculates deductible home office expense on Form 8829; allocates to Schedule J (Form 1120-S) • Deadline: Within 7 business days • How to Obtain: Gather utility bills, rent/mortgage statement, homeowner's insurance bill, maintenance receipts; measure dedicated office space in square feet; or confirm preference for simplified method ($5/sq ft, max $300)