Duluth, GA/Gwinnett County CPA on Resolving Tax Issues with the IRS
Duluth, GA/Gwinnett County CPA on Resolving Tax Issues with the IRS
Two basis tenants are at the center of most every tax issue. As U.S. citizen’s law requires us, to pay our just and fair tax. Though we, while making the calculation of the tax itself to determine the determination of the actual tax amount owed, the responsibility to file and pay your just legal taxes is not voluntary and is required by law. Most tax issues that I have seen over the years while practicing as a CPA in Atlanta for almost thirty years, stem predominantly from not addressing a tax issue, as it occurs. Though we often might feel that the enemy is the IRS, as indeed they do deliver the message. However, the true bane of most tax problems is procrastination. I have recapped below some of the most common IRS tax problems and issues that when ignored become much more problematic than they would be if they had been dealt with initially.
-New Business Start-Ups. Many of tax problems and deficiencies occur as a result of a taxpayer who starts a business and chooses not to initially work with a CPA, until they “can afford it”. Frequently I have been called on after the fact to pick up the pieces and to bring order from error. One such case involved a taxpayer who had been preparing their own personal tax return, which also reflected the operating results of two separate business entities they operated. The taxpayer has also utilized a tax software program that seemingly guided them through the steps to preparing a return. As the taxpayer was not a CPA there were unaware of all of the nuances surrounding the questions generated by the software as they prepared the return. As such, the taxpayer inadvertently failed to understand the inquiries applicability thereby creating three substantive errors on their return, which triggered an audit. Without a CPA’s representation, the taxpayer went to the audit meeting by and came out of it with a $18,000 assessment. Subsequent to this meeting a deadline to produce additional needed information was also missed and the IRS then generated an assessment of $98,000, an $80,000 increase from the original assessment. Tax law is difficult to understand and often even more onerous to use wise and judicious discernment in its application and representing yourself before the IRS is a recipe for disaster.
-Payroll Tax Issues/Reporting. There have been untold times in the past, where taxpayers have advised me that they plant to do their own payroll. To me this is akin to committing financial and administrative suicide as the many varied reporting forms, methods due dates dazzle and confuse ever their most ardent follower. One of our past clients opted to perform their own payroll only to shortly thereafter receive a notice from the IRS detailing a $7,000 penalty as a result of the taxpayers failure to understand and comply with reporting and payment rules and guidelines. Accordingly it is widely suggested that all business owners should utilize the services of a payroll service to ensure seamless and efficient handling of all of their payroll responsibilities and duties.
-An IRS Audit. If you receive and IRS audit your best first call will be to the IRS. Frequently I have been brought in well after the first notice of audit letter is received from the IRS only to learn that a taxpayer who opted to “go it alone” created more tax assessments that the IRS did originally. One of our cases involved a taxpayer who was picked for a random audit based upon an item that appeared high given the taxpayers income. When the IRS letter was initially received by the client it has a detailed request for data for which the client did not feel necessary to compile and went in the meeting both unrepresented and unprepared. Needless to say, the IRS disallowed all of the deduction in question and handed the taxpayer a large monetary assessment. After this has occurred, the taxpayer then picked up the phone can called us. Upon receiving the notice and a copy of the return the client had prepared personally, we then began to work with the client to pull together all of the information required. In so doing, we focused not only on the nature of the request, the order and straight forwardness of the documentation, tax law requirements and ensuring that to an independent observer, the tax agent, the documentation was in order and satisfied all tenants of tax law. It was in the ordering and planning of the documentation that the case was presented and then accordingly closed by the IRS with no additional assessments due.
John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.
“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html
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