Tax Return
A form filed with the IRS reporting income, deductions, and tax liability.
A tax return is the form (or set of forms) filed with the IRS and state agencies reporting your income, deductions, credits, and calculated tax liability. The main federal form for individuals is Form 1040, due April 15. Businesses may file additional returns such as Form 1120 (C corps), 1120-S (S corps), or 1065 (partnerships).
Example
A sole proprietor files Form 1040 with attached Schedule C and Schedule SE, reporting $75,000 in business profit and paying $18,000 in combined income and self-employment tax.
Why It Matters for Your Business
Filing an accurate and timely tax return is a legal obligation—failure to file or filing inaccurately results in penalties, interest, and potential enforcement action.
Related Terms
More Taxes Terms
Adjusted Gross Income
Gross income minus specific deductions like retirement contributions.
Tax Audit
An examination of tax returns by the IRS to verify accuracy.
Capital Gains
Profit from selling an asset for more than its purchase price.
Capital Loss
Loss from selling an asset for less than its purchase price.
Tax Deduction
An expense that reduces taxable income.
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