Atlanta CPA Gets Back $81,000 refund from IRS for Atlanta Client
Atlanta CPA Gets Back $81,000 refund from IRS for Atlanta Client
John Dillard CPA of His CPA PC just received notice today that the IRS has issued a check to refund one of his Atlanta based clients over $81,000. “Though it took a bit longer than expected,” the client was able to deposit the monies back into their accounts and to gain a refund from the IRS which ultimately resulted in a tax savings to a client of approximately $62,000 in tax savings dollars.
The IRS has long had a process where a company who was an LLC or a C Corporation and who desires to be an S Corporation to make an election to do so. This process is documented and performed by the filing of IRS Form 2553, which is the Election to be a Small Business Corporation. To file for S Corporation status the easy way, this election should be filed within 75 days of incorporation date (if an new company) or within seventy-five days of the tax year to which it relates. S Corporations status allows for the legal avoidance of “double taxation” as C Corporations have to pay taxes first at the corporate level on any retained profits and then again at the shareholder level when monies are paid out to owners in either the form of dividends or salaries. LLC’s continue to be responsible to pay FICA/Medicaid taxes on all of their net earnings out of the business, whereas an S Corporation are only required to pay these FICA/Medicaid taxes on salaries paid out to all employees, including active employee owners. Care should be exercised as tax law requires that all active employee owners take a fair and reasonable salary given position and profit.
If you fail to make the seventy-five day time requirement the IRS has long had a process where one you can formally appeal requesting the S Corporation date you prefer. Care should be taken when performing this procedure and working with a CPA is your best bet to ensure that your S Election request is granted. Talking with the IRS about any substantive tax issue that it is widely recommended that you sign a Power of Attorney, which if Form 2848, to have your CPA talk to the IRS on your behalf, which will dramatically and exponentially ensure a higher success rate than going it alone.
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. 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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