Question

My tax preparer said the IRS requires my business checking acct balance..??.. Why?

Forum|Forum|5 years ago
April 5, 2021
1 reply
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My tax preparer has been doing my taxes for a few years but this year (for the first time) he said that the IRS requires my business checking account balance at the end of the year (S-Corp). He's being vague about why we have this new requirement so I'm looking for confirmation that this is really required by the IRS. Any advice is greatly appreciated!

M

MinhT1

The most probable reason is that your S-Corp is required to file a balance sheet (Schedule L) because it has total receipts of more than $250,000 or has a total balance sheet of more than $250,000.

And the ending balance of your business bank account is needed to fill out the balance sheet.

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