I had a CPA do my corporate taxes last year. I did not have a good experience, so I am doing them myself this year. In the course of working through my return via TurboTax Business, I discovered a problem with my 2013 return.
Last year, I ran a balance sheet from my accounting software for the CPA. I still have the email attachment, and the report saved in my accounting software, so I know what I sent him.
(the following are made up numbers, just for illustration)
The balance sheet I supplied shows Assets of $10,000, and Liability of $0.
On my 2013 Schedule L, he has the $10,000 listed under Cash (Line 1) and under Total assets (Line 15). Then he has $1,000 listed under Capital Stock (Line 22), and $2,582 listed under Loans from Shareholders (Line 19).
I don't know if it's common or necessary to include capital stock as a liability? He never indicated he was adding this to my balance sheet.
Edit: just to clarify (I don't think it affects the answers I have received). We never talked about Capital stock, and he never said he was going to put this on the balance sheet (it's not on mine). What I don't know is if this is something my corp is required to have, and thus it needs to appear on the balance sheet, or if he just confused me with another client and threw it in.
In any case, the $2,582 came literally out of nowhere. I did lend my corporation $5,000 to get things started, but I paid that back in full two months later (in 2013). I've looked through all of my correspondence with him and there is no mention of any loan other than the $5,000.
So I clearly have a mistake on my 2013 return. I contacted the CPA and he does not have supporting documentation for those numbers (just the final return). He also says that the amount does not affect my taxes and that we can update it to the correct amount on this year's return.
Is he correct? Do I just need to enter the correct values for the balance sheet this year, and all will be well?