Form 3800

[Axecleaver]

This is my first year operating as an S-corp. In an effort to educate myself, I ran across Form 3800, General Business Credits (source: https://www.irs.gov/pub/irs-pdf/f3800.pdf) and it looks like a wonderfully diverse set of potential tax credits are available to small businesses like mine.

But, it's pretty opaque, and before I engage my CPA in discussion, I like to have a basic understanding so I'm not paying him for the simple stuff. Anybody with some advice on making the most of business tax credits? There's stuff in here for new hires, retirement plan expenses, alternative energy, etc.

Looks like some of this stuff is available to individuals, too, if they're operating as a sole proprietor.

[jwright]

One of the benefits of using a professional is that they are consistently exposed to and learning about the tax code; if you use a firm they will have specialists for different areas and you really get to take advantage of that depth of knowledge. 

What kind of business do you have? What industry? Do you have employees?  A lot of credits require documentation or due diligence before applying for the credit.  I work in real estate.  We have taken advantage of the historic rehabilitation tax credit, for example, but you have to submit paperwork to the powers that be before you do any work that would qualify for the credit.  We've also looked at the new markets tax credit and the filing requirements are tremendous.   

The tax credit for pension plan expenses is an easy one that doesn't require a lot of the legwork.  Up to $500 per year for the first three years your plan is in place.  You just need to show that you paid the administrative fees.

There are also state specific credits that you may qualify for - and a CPA will know which are available to your business.

[Axecleaver]

Thanks for your reply. I work with an independent CPA who has experience with small business owners. I agree that he may not have the breadth of experience that would be available in a larger accounting firm. He's been my accountant for 20 years, after I opened my first company back in 1996. I didn't want to show up to a meeting with him knowing nothing about this stuff, hence my question.

I run a public sector consulting company in NY. We do project management and technical work for government clients, often working with prime contractors. Company has four employees (including myself).

I'll take advantage of the pension plan credit, thanks! Will also ask about state specific credits. I know NY is big into energy credits, which doesn't apply in my situation. Likely to be others.