Can you help me with the Balance sheet per book and Schedule M-1?
I used an accountant firm for my initial 2015 Corporation Income tax return(1120). They did a Profit & Loss and Balance sheet for that year.In the schedule K they put cash for the accounting method but in the balance sheet they did says accrual basis.I had a a net income of $ 82425.In the Schedule L they put 795.00 as a Cash, 56130 as “trade notes and accounts receivables” and 56130 for “less allowance for bad debts”. This give me a total asset of 56925. I paid 10251.00 federal taxes. Give me a retained earning of 46674. When I use this information for the 2016 Income tax the Tax Act give an error.The beginning and end of the year is out of balance. Any help?
I’m sorry to hear that you are having issues with this schedule. Unfortunately I do not have much experience with completing this schedule. If you want to try and figure it out on your own, there is an article that I wrote that includes a section on how to complete schedule M-1. You can find it here: https://fitsmallbusiness.com/how-to-complete-form-1120s/
I would strongly suggest that you find another CPA/Tax accountant who can fix this for you. Check out how this article on how to locate a tax pro:https://fitsmallbusiness.com/how-to-find-a-quickbooks-proadvisor/
Finally, feel free to email me directly and I can give you a couple of referrals. You can reach me at firstname.lastname@example.org.
Good luck on getting this issue resolved.