Tax season arrives the same time every year — but the businesses that handle it smoothly are the ones that prepared throughout the year, not just in March. This checklist covers every significant tax obligation for Utah small business owners: income tax, payroll tax, sales tax, year-end documentation, and Utah-specific filings. Work through it in January and again in October to confirm nothing is missing before your CPA begins your return.
Part 1: Income and Revenue Records
Total revenue by category: Pull a revenue summary from your accounting software. If you have multiple revenue streams, confirm each is coded correctly.
1099-NEC and 1099-MISC received: Collect all 1099s received from clients. These must match your reported income — reconcile discrepancies before filing.
Reconcile bank deposits to revenue: Every deposit in your business account should tie to a recorded invoice or revenue event. Unexplained deposits become unreported income if not documented.
Interest and investment income: If the business holds interest-bearing accounts or short-term investments, pull year-end statements.
Rental income: If the business collects rent from subleases or property, confirm all rental income is recorded.
Cancelled debt: If any business debt was forgiven during the year, it may be taxable income — flag this for your CPA.
Part 2: Deductible Business Expenses
Operating Expenses
- Rent or home office deduction (Form 8829 for home office; ensure square footage calculation is documented)
- Utilities attributed to business use
- Insurance premiums (general liability, professional liability, workers' comp, health insurance for self-employed)
- Professional fees (legal, accounting, consulting)
- Software subscriptions and technology expenses
- Advertising and marketing (digital advertising, website, print)
- Bank fees and merchant processing fees
- Office supplies and postage
- Dues and subscriptions (professional associations, publications)
- Education and training (directly related to your trade or business)
Vehicle Expenses
Standard mileage method: Log total business miles with dates and purposes. IRS standard rate: 67 cents per mile (2024). Commuting miles are not deductible.
Actual expense method: Fuel, insurance, registration, repairs, depreciation — allocate by business-use percentage. Keep a mileage log to support the business-use ratio.
Choose one method and apply consistently — switching requires IRS approval.
Meals
50% of business meals with clients or employees are deductible. Log the business purpose, attendees, date, and amount for each.
Entertainment expenses are generally not deductible since the 2017 Tax Cuts and Jobs Act.
Travel
- Airfare, hotel, rental car, and ground transportation for business travel are 100% deductible.
- Keep receipts and document the business purpose for each trip.
- Mixed personal/business travel requires allocation — only the business portion is deductible.
Equipment and Assets
- List all equipment, furniture, computers, and vehicles placed in service during the year.
- Note purchase date, cost, and business-use percentage for each.
- Flag any items eligible for Section 179 expensing or bonus depreciation.
Part 3: Payroll and Contractor Records
W-2s issued: Confirm W-2s were sent to all employees by January 31 and filed with the SSA.
1099-NECs issued: Confirm 1099-NECs were sent to all contractors paid $600 or more by January 31.
Payroll tax deposits: Confirm all Form 941 deposits were made on time. Unpaid payroll tax is the most common IRS enforcement trigger for small businesses.
Quarterly Form 941s: Confirm all four quarters (Q1–Q4) were filed. Q4 is due January 31.
Form 940 (FUTA): Annual federal unemployment return; due January 31.
Utah Withholding Return (WT-1): Quarterly returns filed with the Utah State Tax Commission.
Utah SUI returns: Filed quarterly with the Utah Department of Workforce Services.
Health insurance premiums for owner: If you pay health insurance premiums as an S-Corp officer, confirm the premiums are included in W-2 Box 1 wages — required for the self-employed health insurance deduction.
Part 4: Sales Tax (If Applicable)
Utah sales tax returns filed: All monthly or quarterly returns filed on time with the Utah State Tax Commission. Late filing triggers minimum penalties even on zero returns.
Sales tax collected vs. remitted: Confirm the total tax collected during the year matches what was remitted to the state. Discrepancies require explanation.
Nexus review: If your business sells online or operates in other states, confirm you are registered and filing in every state where you have economic nexus. South Dakota v. Wayfair (2018) requires registration once you exceed each state’s economic nexus threshold.
Exempt sales documentation: If you made sales to exempt buyers (resellers, nonprofits), confirm you have valid exemption certificates on file.
Part 5: Utah-Specific Obligations
Utah Annual Report: LLCs and corporations must file an annual report with the Utah Division of Corporations. Due in the anniversary month of formation. Late fee: $10/month up to $50.
Utah Pass-Through Entity Tax (PTET) election: If your pass-through entity made the Utah PTET election for the tax year, confirm estimated PTET payments were made and the TC-20S, TC-65, or TC-40 reflects the election.
Utah income tax return: Flat 4.65% rate. Due the same date as the federal return.
Utah business license renewal: Most Utah municipalities require annual business license renewal. Kaysville and surrounding cities: confirm renewal is current.
Part 6: Retirement and Benefits
SEP-IRA contribution: Self-employed individuals may contribute up to 25% of net self-employment earnings (maximum $69,000 for 2024) to a SEP-IRA. Contributions can be made until the tax return due date, including extensions.
Solo 401(k): Employee contributions must be made by December 31; employer profit-sharing contributions may be made until the tax return due date including extensions.
SIMPLE IRA: Employee salary deferrals must be contributed within 30 days of the month of withholding.
Confirm contribution limits were not exceeded: Excess contributions are subject to a 6% excise tax.
Health Savings Account (HSA) contributions: If you have a high-deductible health plan, confirm HSA contributions are within the annual limit ($4,150 single / $8,300 family for 2024).
Part 7: Year-End Documentation to Gather for Your CPA
Income Documentation
- Business bank statements (all months, all accounts)
- Merchant account summary reports (Square, Stripe, PayPal, etc.)
- All 1099s received
- Accounts receivable aging report as of December 31
Expense Documentation
- QuickBooks/Xero year-end reports: Profit & Loss, Balance Sheet, General Ledger
- All receipts for items over $75 (best practice: all receipts)
- Vehicle mileage log
- Home office calculation (square footage, total home expenses)
- Loan statements showing principal and interest allocation
Payroll Documentation
- Payroll summary by employee
- All Form 941s for Q1–Q4
- W-2s and 1099s as issued
Entity Documents
- Prior-year tax return (if new CPA)
- Operating agreement or shareholder agreement
- Any changes in ownership percentage during the year
Common Year-End Tax Moves to Consider
Before December 31
- Accelerate deductible expenses into the current year if income will be lower next year
- Defer invoicing to push income into January if you expect to be in a lower bracket next year
- Purchase and place qualifying equipment in service to claim Section 179 or bonus depreciation for the current year
- Make retirement contributions (for plans with December 31 employee-contribution deadlines)
- Review your estimated tax payments — underpayment penalty accrues on any shortfall
Before Your Return Due Date (With Extension)
- Make SEP-IRA or Solo 401(k) employer contributions
- Fund an HSA if eligible
- Review any QBI deduction planning opportunities
Call (801) 927-1337 or email admin@cpaone.net to schedule your year-end tax planning review. We work through this checklist with every client to ensure nothing is missed and every available deduction is captured before your return is filed.
About the Author
Missy Dennis, CPA | Partner | FJ & Associates, PLLC | Kaysville, Utah
Missy holds a Master of Accounting degree from the University of Utah and is a licensed Certified Public Accountant. She is committed to providing clear, accurate, and actionable guidance so clients can navigate complex financial decisions with confidence. With more than twenty years of public accounting experience, Missy Dennis specializes in: tax preparation and tax advisory; bookkeeping strategy alignment; estate and trust taxation; audit and consulting services; low-income housing tax credits; non-profit accounting; and small- and mid-sized business advisory.
