The return records the year. The planning decides what it says — and that has to happen before December 31.
Goldenthal & Suss Consulting P.C. provides tax planning and return preparation for closely held businesses — S corporations (Form 1120-S), partnerships and multi-member LLCs (Form 1065), and C corporations (Form 1120) — along with the New York and New Jersey returns that go with them. Planning covers entity selection, reasonable compensation for S-corporation owners, pass-through entity tax elections, depreciation and asset purchases, retirement plans, and the timing of income and deductions. Because the firm is audit-focused, returns are prepared with the same documentation standard an examiner would apply.
Most tax-saving decisions for a business must be made during the tax year: whether and when to buy equipment, how much S-corporation owners pay themselves in wages versus distributions, whether to establish or fund a retirement plan, whether to elect into a state pass-through entity tax, and whether income and expenses can be shifted between years. We schedule planning in the fourth quarter for that reason.
Both states offer an elective entity-level tax for partnerships and S corporations — New York's PTET and New Jersey's BAIT — that lets owners effectively deduct state tax at the federal level despite the individual SALT cap. Whether the election saves money depends on the owners' residency, income, and the current federal cap, and New York's election must be made early in the tax year. It is a decision to model, not a default.
A return is only as good as the support behind it. We tie the return to reconciled books, document positions that require judgment, and flag items — officer compensation, shareholder loans, vehicle and travel deductions, related-party payments — that examiners routinely question. That makes the return more defensible and the business's financial statements more credible to lenders at the same time.
For calendar-year businesses, partnership (Form 1065) and S corporation (Form 1120-S) returns are due March 15, and C corporation (Form 1120) returns are due April 15. Each can be extended six months with Form 7004 — to September 15 for pass-throughs and October 15 for C corporations. An extension extends the time to file, not the time to pay any tax owed.
It depends on the owners' residency and income, the federal SALT cap in effect, and the business's cash position, since the entity pays the tax. For many owners it produces a real federal saving, but not for all. The New York election is annual and has an early deadline in the tax year, so model it during the prior year's planning.
The IRS expects S corporation shareholders who work in the business to take wages comparable to what the business would pay someone else for the same services, before taking distributions. There is no fixed formula; it is judged on duties, time, industry, and comparable pay. Setting it too low is one of the most common S corporation examination issues.
Sources & review
Federal due dates are statutory (weekend/holiday rolls to next business day). NY PTET election Jan 1–Mar 15 of the tax year (tax.ny.gov/bus/ptet); NJ BAIT elected annually by original PTE-100 due date. OBBBA SALT cap $40,000 for 2025 / $40,400 for 2026, PTET left intact. Reviewed 2026-10-01. Thresholds and deadlines change — confirm current requirements before relying on them.
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