Step 1 of 13
Client Information
Complete this section for every engagement. All other sections auto-populate client name and tax year.
👤 Owner / Taxpayer
🏢 Business Information
📅 Tax Year & Preparer Notes
🏦 Direct Deposit / Refund
Step 2 of 13
Entity Selection
Select all entity types that apply to this client. Sections will activate based on your selections.
🏢 Select All That Apply
💡You can select multiple entities. A high earner may have an S-Corp, a sole proprietorship, rental properties, and W-2 income all in the same tax year.
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Schedule C
Sole Proprietor / Single-Member LLC
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S-Corp / 1120-S
LLC Electing S-Corp Treatment
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Partnership / 1065
Multi-Member LLC / General Partnership
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Rental / Sch E
Residential or Commercial Rental
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W-2 Employee
Wages from Employer in Addition to Business
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Investments
Stocks, Crypto, Dividends, Capital Gains
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Issues 1099-NEC
Paid Contractors $600+ — Must File 1099s
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Estimated Taxes
Pays Quarterly Estimated Taxes (1040-ES)
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Business Vehicle(s)
Form 4562 / Standard Mileage or Actual
📌 High Earner Indicators
⚠️Check all that apply. These flags affect estimated tax calculations, deduction phase-outs, and NIIT (Net Investment Income Tax) exposure.
Schedule C — Sole Proprietorship
Business Income & Expenses
Sole proprietor or single-member LLC not electing S-Corp. All income flows directly to Form 1040, subject to self-employment tax.
💵 Gross Income by Source
Line 1 — Gross Receipts or Sales
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📦 Cost of Goods Sold (if product-based)
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📤 Part II — Business Expenses
Standard Deductible Expenses
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Other Expenses (Part V)
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🏠 Home Office Deduction (Form 8829)
ℹ️Use the simplified method ($5/sq ft, max 300 sq ft) or the regular method (actual expenses × business %). Enter square footages below.
Home Office Deduction
$0.00
Enter square footages to calculate
🚗 Standard Mileage Calculator (2025 Rate: $0.67/mile)
Mileage Deduction
$0.00
Enter mileage to calculate
📊 Schedule C Summary
Gross Income
$0.00
Total Expenses
$0.00
Net Profit / (Loss)
$0.00
SE Tax Estimate (15.3% × 92.35%)
$0.00
QBI Deduction Estimate (20% of net)
$0.00
Subject to income limits — verify eligibility
S-Corporation — Form 1120-S
S-Corp / LLC Electing S-Corp
Income and deductions at the entity level. K-1 flows through to the owner's Form 1040. Reasonable compensation W-2 required.
🏛 Entity Details
💵 Revenue
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📤 Deductions (Entity Level)
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💼 Officer / Shareholder W-2 & Distributions
⚠️IRS requires S-Corp shareholder-employees to pay themselves reasonable compensation before taking distributions. Distributions are NOT subject to SE tax; W-2 wages ARE subject to payroll taxes.
W-2 to Distribution Ratio
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IRS expects W-2 to reflect reasonable compensation. Low ratio may trigger audit.
📊 Shareholder Basis Tracking
⚠️Distributions in excess of basis are taxable as capital gains. Losses are only deductible to the extent of basis. Track basis every year.
Estimated Year-End Basis
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Includes K-1 income/loss. Final basis calc requires full K-1 data.
📋 K-1 Summary (Your Share)
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📊 S-Corp Summary
Gross Revenue
$0.00
Total Deductions
$0.00
Ordinary Income / (Loss)
$0.00
Partnership — Form 1065
Partnership / Multi-Member LLC
Income passes through to each partner's K-1. No entity-level federal income tax. Partnership agreement governs profit/loss allocation.
🤝 Entity Details
📋 K-1 Data (Your Share — Schedule K-1 Form 1065)
📋Enter figures from the K-1 you received from the partnership. If the K-1 is not yet available, note that as an open item.
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📊 Partner Basis & At-Risk
Rental Income — Schedule E
Rental & Passive Income
Each rental property is tracked separately. Add as many properties as needed. Net loss is limited by passive activity rules unless the client qualifies as a real estate professional.
🏘 Rental Activity Status
📊 Rental Portfolio Summary
Total Gross Rents
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Total Expenses
$0.00
Net Income / (Loss)
$0.00
W-2 & Personal Income
Employment Income & Adjustments
W-2 wages, above-the-line adjustments, itemized deductions, and dependents. High earners often carry W-2 income in addition to business income.
💼 W-2 Income
| Employer Name | Box 1 — Wages | Box 2 — Fed WH | Box 4 — SS Tax | Box 6 — Medicare | Box 16 — State Wages | Box 17 — State WH | Delete |
|---|---|---|---|---|---|---|---|
Total W-2 Wages
$0.00
Total Federal Withheld
$0.00
Total State Withheld
$0.00
⬆ Above-the-Line Adjustments (Schedule 1)
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📋 Schedule A — Itemized vs. Standard Deduction
ℹ️2025 Standard Deduction: Single $15,000 · MFJ $30,000 · HOH $22,500. The system will calculate which is more beneficial.
Itemized Deductions
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Comparison
Total Itemized Deductions
$0.00
Standard Deduction
$15,000
Based on filing status
Recommended
Enter figures
👨👩👧 Dependents
| Name | SSN (Last 4) | DOB | Relationship | Months in Home | Child Tax Credit? | Del |
|---|---|---|---|---|---|---|
Investment Income
Capital Gains, Dividends & Crypto
Brokerage accounts, cryptocurrency, dividends, interest, and other investment income. High earners subject to NIIT (3.8%) on net investment income above threshold.
📈 Dividends & Interest (1099-DIV / 1099-INT)
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💹 Capital Gains / Losses (Schedule D)
ℹ️Short-term gains (held ≤1 year) are taxed as ordinary income. Long-term gains (held >1 year) qualify for preferential rates: 0%, 15%, or 20% based on AGI.
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Net Short-Term Gain / (Loss)
$0.00
Net Long-Term Gain / (Loss)
$0.00
₿ Cryptocurrency (Form 8949)
⚠️Every crypto-to-crypto swap, sale, or exchange is a taxable event. Mining, staking rewards, and airdrops are ordinary income. IRS question on Form 1040 must be answered.
| Coin / Token | Date Acquired | Date Sold | Proceeds | Cost Basis | Gain / Loss | ST/LT | Del |
|---|---|---|---|---|---|---|---|
| $0.00 |
Total Crypto Gain / (Loss)
$0.00
Mining / Staking Ordinary Income
$0.00
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💰 Other Investment Income
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📊 Investment Income Summary
Total Dividends & Interest
$0.00
Net Capital Gains
$0.00
NIIT Exposure (3.8%)
Check AGI
1099-NEC Issuance — Compliance Workflow
Contractor Payment & 1099-NEC Filing
Any business that paid an individual or unincorporated entity $600 or more during the year must issue a 1099-NEC. Due date: January 31. IRS penalties up to $330/form for late filing.
📋 1099-NEC Filing Checklist
👷 Contractor Roster
ℹ️Enter all contractors paid during the tax year. The system will flag anyone approaching or exceeding $600 and track W-9 and 1099 status. Rows highlight red when $600 threshold is met.
| Contractor Name | EIN / SSN | Address | Business Type | Total Paid | W-9 Status | 1099 Status | Notes | Del |
|---|
Total Contractors
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W-9 Needed
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1099s to File
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📚 W-9 Collection Guide
📋 How to Collect a W-9 from Contractors
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📅 1099-NEC Filing Deadlines & Penalties
Recipient Copy B Deadline
Jan 31
Must be postmarked or delivered by January 31
IRS Filing Deadline
Jan 31
Paper and electronic — same deadline for 1099-NEC
Penalty Range
$60–$330
Per form, based on how late. Intentional disregard: $660/form
Quarterly Estimated Taxes
Estimated Tax Payments
Business clients and high earners must pay quarterly estimated taxes to avoid underpayment penalties. This section tracks payments made and calculates safe harbor requirements.
🛡 Safe Harbor Calculator
💡To avoid penalties, pay the lesser of: (A) 90% of current year tax liability, or (B) 100% of prior year tax — or 110% if prior year AGI exceeded $150,000.
Safe Harbor Rate
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Enter prior year AGI
Annual Safe Harbor Amount
$0.00
Safe Harbor Per Quarter
$0.00
🇺🇸 Federal Estimated Tax Payments (Form 1040-ES)
ℹ️2025 Federal Due Dates: Q1 Apr 15 · Q2 Jun 16 · Q3 Sep 15 · Q4 Jan 15, 2026
| Quarter | Due Date | Amount Due (Safe Harbor) | Date Paid | Amount Paid | EFTPS Confirmation # | Status |
|---|---|---|---|---|---|---|
| Q1 | Apr 15, 2025 | — | Pending | |||
| Q2 | Jun 16, 2025 | — | Pending | |||
| Q3 | Sep 15, 2025 | — | Pending | |||
| Q4 | Jan 15, 2026 | — | Pending |
Total Federal Paid
$0.00
Remaining / Overpaid
$0.00
Safe Harbor Status
Enter data
🐻 California Estimated Tax (Form 540-ES)
⚠️CA 2025 Due Dates: Q1 Apr 15 · Q2 Jun 16 · No Q3 · Q4 Jan 15, 2026. CA requires 30%/40%/0%/30% of annual estimated tax per quarter.
| Quarter | Due Date | CA % Required | Date Paid | Amount Paid | Web Pay Conf # | Status |
|---|---|---|---|---|---|---|
| Q1 | Apr 15, 2025 | 30% | Pending | |||
| Q2 | Jun 16, 2025 | 40% | Pending | |||
| Q3 | N/A — No CA Q3 | 0% | N/A | |||
| Q4 | Jan 15, 2026 | 30% | Pending |
Total CA Paid
$0.00
CA Estimated Tax (Full Year)
Enter estimated tax
Business Vehicles — Form 4562
Vehicle & Asset Depreciation
Track all business vehicles and depreciable assets. Standard mileage rate 2025: $0.67/mile. Actual expense method and Section 179 / bonus depreciation also available.
🏭 Section 179 & Bonus Depreciation Assets
💡2025: Section 179 limit $1,220,000 · Phase-out begins at $3,050,000. Bonus depreciation 40% for 2025 (phasing down). Listed property (vehicles, computers) subject to special limitations.
| Asset Description | Date Placed in Service | Cost Basis | Method | §179 Amount | Bonus % | Annual Depr | Del |
|---|---|---|---|---|---|---|---|
| $0.00 |
Total §179 & Depreciation from Asset Table
$0.00
Document Checklist & Upload
Required Documents
Based on your entity selections, the required document list is generated automatically. Upload via Dropbox or bring originals to your appointment.
📁 Required Document Checklist
📋Checked items are always required. Additional items appear based on your entity selections above.
Always Required — All Clients
☁️ Secure Document Upload
🔒Upload directly to Purnell Tax Solutions secure Dropbox. Files are encrypted and stored in our secure client folder. Do not email sensitive documents.
☁️ Upload Documents to Secure Dropbox
Opens in a new tab. Files go directly to Purnell Tax Solutions secure folder.
🤖 AI Document Processor
⚡Have bank statements, 1099s, or multiple documents to process? Use the AI Document Processor to bulk-upload and auto-extract all dollar figures into this organizer.
⚡ Open AI Document Processor
Supports PDF bank statements, 1099s, W-2s, and more. Auto-populates organizer fields.
📝 Document Notes
Advanced Topics · Complex Scenarios
Multi-State · Foreign Income · Digital Assets · FinCEN
Complete this section if any of the following apply: business or income in more than one state, foreign accounts or income, cryptocurrency or digital asset activity, RWAs, or digital nomad / remote-work situations.
🗂 Select All That Apply This Year
⚠️Each selection below activates a sub-section. Penalties for non-disclosure of foreign accounts and digital assets can exceed the underlying tax owed — never omit these items.
🗺 State & Territory Tax Overview — Business Nexus & Filing Obligations
📋Nexus means a taxable connection to a state. You can have nexus in a state where you never set foot — through employees, contractors, inventory, or economic activity (sales threshold). Each state where you have nexus may require a separate return and estimated tax payments.
States With No Personal Income Tax No PIT
✅Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming — no state personal income tax. Note: NH and TN tax investment income in some scenarios; WA has a capital gains tax on gains over $262,000 (2025).
States With Flat Income Tax Rate
ℹ️Arizona 2.5% · Colorado 4.4% · Georgia 5.49% · Idaho 5.8% · Illinois 4.95% · Indiana 3.05% · Kentucky 4.0% · Michigan 4.25% · Mississippi 4.7% · North Carolina 4.5% · Pennsylvania 3.07% · Utah 4.55%
High-Tax States — Key Business Rules
| State | Top Rate | Notable Business Rule | S-Corp / LLC Fee |
|---|---|---|---|
| California | 13.3% | 1.5% franchise tax on S-Corp net income · $800 min annual fee · Economic nexus at $500K sales | $800/yr minimum |
| New York | 10.9% | NYC adds up to 3.876% city tax · Steep S-Corp filing fee based on receipts | Up to $4,500/yr |
| New Jersey | 10.75% | Corporation Business Tax applies to S-Corps · Economic nexus $100K or 200 transactions | $375 min |
| Oregon | 9.9% | Commercial Activity Tax (CAT) on gross receipts over $1M · No sales tax | $150 min |
| Minnesota | 9.85% | S-Corp built-in gains tax exposure · No throwback rule | $0 min |
| Massachusetts | 9.0% | 5% flat + 4% surtax on income over $1M · S-Corp excise tax | $456 min |
| Hawaii | 11.0% | Highest top rate in the US · General Excise Tax (GET) on gross receipts (4% statewide) | $250 min |
| Illinois | 4.95% | Flat rate + 1.5% personal property replacement tax on S-Corp income | $75/yr |
Reciprocity Agreements — Live in One State, Work in Another
💡Reciprocity agreements let you pay income tax only in your home state even if you work in another. Key pairs: PA ↔ NJ · MD ↔ DC/VA/WV/PA · VA ↔ DC/MD/WV/KY/PA · IL ↔ IA/KY/MI/WI · IN ↔ KY/MI/OH/PA/WI · WI ↔ IL/IN/KY/MI. California has NO reciprocity agreements with any state.
US Territories — Special Tax Rules
| Territory | Tax Treatment | Key Rule |
|---|---|---|
| Puerto Rico (PR) | Has its own tax system (Hacienda) | Act 22/60: 0% capital gains for new residents who move to PR. Must file PR return. Bona fide resident test requires 183+ days. |
| US Virgin Islands (USVI) | Mirror code of federal tax | Files with USVI instead of IRS. Economic Development Commission credits available for qualifying businesses. |
| Guam | Mirror code | Guam residents file with Guam Department of Revenue and file federal return with Guam. Business income taxed by Guam. |
| CNMI (N. Mariana Islands) | Mirror code | CNMI residents file with CNMI Division of Revenue and Taxation. |
| American Samoa (AS) | Has own tax system | AS residents generally exempt from federal income tax on AS-source income. Files AS return only for AS income. |
Your State Filing Situation
🌍 Digital Nomad & Multi-State Filing
⚠️Domicile vs. Physical Presence: Your domicile (legal home) determines your primary state return. Physical presence — even temporary — can create a filing obligation in other states. California, New York, and New Jersey are particularly aggressive about claiming non-resident income.
Domicile & Residency Status
⚠️California Danger Zone: CA can assert residency (and tax ALL your income) if you maintained a domicile in CA, had a CA driver's license, registered vehicles in CA, or spent more than 546 days in CA over any 24-month period (Safe Harbor). Leaving CA does not automatically end CA tax obligations.
⚠️New York Danger Zone: NY's "convenience of the employer" rule can tax remote workers as NY residents even if they live elsewhere, if their employer is based in NY and remote work is for personal convenience rather than necessity.
State Income Allocation (Non-Resident)
S-Corp / LLC in Multiple States
📋An S-Corp or LLC may need to register as a foreign entity (pay registration fees) and file tax returns in every state where it has nexus — regardless of where it was originally formed. K-1 income is generally sourced where the business activity occurred, not where the shareholder lives.
₿ Cryptocurrency & Digital Assets — Form 8949 / Schedule D
⚠️IRS Position: Cryptocurrency is property, not currency. Every sale, trade, swap, or exchange — including crypto-to-crypto — is a taxable event requiring gain/loss calculation. The IRS now requires every 1040 filer to answer the digital asset question on Page 1 of Form 1040 regardless of activity.
IRS Form 1040 — Digital Asset Question
Transaction Summary by Category
| Asset / Platform | Type | Date Acquired | Date Disposed | Proceeds | Cost Basis | G/L | ST/LT | Del |
|---|---|---|---|---|---|---|---|---|
| $0.00 |
Total ST Gain / (Loss)
$0.00
Total LT Gain / (Loss)
$0.00
Ordinary Income (Mining/Staking/Comp)
$0.00
Ordinary Income Events (Taxed at Regular Rates)
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DeFi — Decentralized Finance Activity
⚠️DeFi activity creates taxable events the IRS is actively scrutinizing. Depositing into a liquidity pool may be a taxable swap. Removing liquidity triggers gain/loss calculation on both assets. Yield farming income is ordinary income at FMV at time of receipt.
NFTs — Non-Fungible Tokens
ℹ️NFT sales are capital gains (or losses). NFTs held as collectibles may be taxed at 28% collectibles rate if held long-term. NFTs created and sold by an artist are ordinary income (Schedule C). Royalties from NFT resales are ordinary income.
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Key Crypto Tax Rules Reference
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Wash Sale: Does NOT apply to crypto under current law (no statutory wash sale rule for digital assets — this may change). You can sell at a loss and immediately rebuy.
Cost Basis Methods: FIFO is IRS default. Specific ID (highest cost) can minimize gains — must be designated at time of sale, not retroactively.
Gifts: Gifting crypto is not a taxable event for the giver (but gift tax rules may apply above $18K annual exclusion). Recipient takes donor's basis.
Lost / Stolen / Rug Pull: IRS guidance is limited. Generally no deduction for theft of crypto unless from a transaction entered into for profit. Worthless token may produce capital loss.
Cost Basis Methods: FIFO is IRS default. Specific ID (highest cost) can minimize gains — must be designated at time of sale, not retroactively.
Gifts: Gifting crypto is not a taxable event for the giver (but gift tax rules may apply above $18K annual exclusion). Recipient takes donor's basis.
Lost / Stolen / Rug Pull: IRS guidance is limited. Generally no deduction for theft of crypto unless from a transaction entered into for profit. Worthless token may produce capital loss.
🏗 Real World Assets (RWAs) — Tokenized Securities, Real Estate & Commodities
📋What are RWAs? Real World Assets are traditional off-chain assets (real estate, Treasury bills, corporate bonds, commodities, private equity) that have been tokenized on a blockchain. The IRS treats the underlying asset's tax rules as controlling — the token is merely the delivery mechanism.
RWA Holdings & Activity This Year
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Tokenized Real Estate: Rental income from tokenized real estate is Schedule E income. Depreciation may be claimable. If held as a security token on a blockchain exchange, sale proceeds are capital gain/loss — report on Form 8949 same as crypto. Some protocols issue K-1s; confirm with the platform.
Tokenized Treasuries: Interest is federally taxable but generally exempt from state/local income tax — same as direct Treasury ownership. Track 1099-INT or equivalent disclosures from the protocol.
PFIC Risk: Foreign-based RWA protocols may hold assets through foreign entities that qualify as Passive Foreign Investment Companies (PFICs). PFIC reporting (Form 8621) is extremely complex. Flag any offshore protocol for preparer review.
Tokenized Treasuries: Interest is federally taxable but generally exempt from state/local income tax — same as direct Treasury ownership. Track 1099-INT or equivalent disclosures from the protocol.
PFIC Risk: Foreign-based RWA protocols may hold assets through foreign entities that qualify as Passive Foreign Investment Companies (PFICs). PFIC reporting (Form 8621) is extremely complex. Flag any offshore protocol for preparer review.
🌐 Foreign Income — FEIE, FTC, and International Compliance
⚠️US persons are taxed on worldwide income. Citizens and permanent residents (green card holders) must report all income regardless of where it was earned or where the bank account is located. Tax treaties may reduce or eliminate double taxation in specific countries.
Foreign Earned Income (Form 2555 — FEIE)
💡Foreign Earned Income Exclusion (FEIE) 2025: Up to $130,000 of foreign earned income may be excluded if you pass either the Bona Fide Residence Test (full calendar year abroad) or the Physical Presence Test (330 days in a 12-month period outside the US). Self-employment income earned abroad qualifies — but SE tax still applies to excluded income.
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Foreign Tax Credit (Form 1116)
ℹ️If you paid income taxes to a foreign government, you may claim a Foreign Tax Credit (Form 1116) as a dollar-for-dollar offset against US tax owed. You must choose between the FEIE and FTC — you generally cannot use both on the same income. FTC is typically better for high-tax countries (UK, Germany, France); FEIE is typically better for low-tax or no-tax countries.
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Foreign Passive Income
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Foreign Business Structures
🏦 FBAR & FinCEN — Foreign Account Reporting
🚨
FBAR penalties are severe. Non-willful failure: up to $16,117 per account per year. Willful failure: the greater of $161,166 or 50% of the account balance per year. Criminal penalties possible. The FBAR is filed separately from your tax return — directly with FinCEN by April 15 (auto-extended to October 15).
FinCEN Form 114 — FBAR (Foreign Bank Account Report)
💡Who must file: Any US person (citizen, resident, green card holder) who had a financial interest in, or signature authority over, foreign financial accounts with an aggregate value exceeding $10,000 at any point during the calendar year. Includes bank accounts, brokerage accounts, mutual funds, and some crypto held on foreign exchanges.
| Financial Institution | Country | Account Type | Max Balance (USD) | Account # | Signatory Only? | Del |
|---|---|---|---|---|---|---|
Aggregate Max Balance
$0.00
Enter account balances to determine filing obligation
Form 8938 — FATCA (Foreign Account Tax Compliance Act)
⚠️Form 8938 filing thresholds (2025):
Single / MFS living in US: $50,000 on last day OR $75,000 at any point
MFJ living in US: $100,000 on last day OR $150,000 at any point
Living abroad: $200,000 on last day OR $300,000 at any point (single) · $400K/$600K (MFJ)
Form 8938 is filed WITH your tax return (not separately like FBAR). Both FBAR and 8938 may be required — they are not interchangeable.
Single / MFS living in US: $50,000 on last day OR $75,000 at any point
MFJ living in US: $100,000 on last day OR $150,000 at any point
Living abroad: $200,000 on last day OR $300,000 at any point (single) · $400K/$600K (MFJ)
Form 8938 is filed WITH your tax return (not separately like FBAR). Both FBAR and 8938 may be required — they are not interchangeable.
Crypto on Foreign Exchanges — FBAR Exposure
📋
Current IRS/FinCEN position: Crypto held on a foreign exchange (Binance non-US, KuCoin, Bybit, OKX, etc.) may be subject to FBAR reporting as a foreign financial account. FinCEN proposed rules in 2021 that would require FBAR reporting for foreign crypto accounts — final rules pending as of 2025. Err on the side of disclosure — penalties for willful non-filing are catastrophic.
Prior Year Compliance
Final Review & Submission
Review & Submit to Purnell Tax Solutions
Review the summary below and submit your completed organizer. Kathy will review your information and contact you within 2 business days.
📊 Organizer Summary
Client
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Tax Year & Return Type
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Entities Selected
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Schedule C Net Profit
$0.00
S-Corp Ordinary Income
$0.00
Rental Net Income
$0.00
W-2 Total Wages
$0.00
Federal Estimated Paid
$0.00
1099-NEC to File
0
⚠️ Open Items & Flags
✅No open items flagged. Review sections above to confirm all fields are complete.
✍️ Client Certification
⚠️By submitting this organizer, you certify that all information provided is true, correct, and complete to the best of your knowledge. Your preparer will contact you if additional information is needed.