Duluth CPA Firm Advises Business Owners How to Lower Their 2009 Tax Bill
Duluth CPA Firm Advises Business Owners How to Lower Their 2009 Tax Bill
Below is a sample letter we might sent to a taxpayer as well as a checklist of items to evaluate when planning for your 2009 tax bill to both the IRS and Georgia/state. Being well aware of these items will do much to prevent unnecessary tax surprises:
In Working on Your 2009 Tax Planning Please:
-Please forward a copy of your year to date pay stub showing this year’s total gross wages and withholding.
-Please advise of any substantive changes you anticipate occurring when comparing your 2008 Personal Tax Return to 2009 Actual Results.
-When you forwarded the detail of your financial data recap for the year you separated out payroll from taxes. Were all of these monies to pay wages and payroll taxes for the business owner or were they for other items and personnel. Please forward a recap of the detail of these items.
Especially as we close the tax year, we need to take a look at your financials to do some tax planning for the year. Below please find recapped below a list of the items we will need in order to properly evaluate and plan for your year-end taxes as well as address any year-end tax planning ideas.
As the end 2009 approaches, it’s time to think about what can be done to minimize the amount of taxes paid to the IRS by your business. Although tax planning should be a year-round process, there are several year-end strategies you can take, particularly if you are an S Corporation.
Below is a checklist as the end of the year approaches:
- Keep your inventory as low as possible on December 31st. Since you are taxed based on the value of your goods in stock, it makes sense to minimize your inventory.
- If you are an accrual-based taxpayers may want to consider delaying end of December billing until early January. Since income is recognized when it is billed, you can delay the tax effects from 2009 until 2010.
- Locate and record all tax-deductible expenses and accounts payable before the end of 2009, rather than waiting until next year. This includes your personal expense report for December. Cash-based taxpayers must pay these expenses, while accrual-based taxpayers need only to receive and enter the bills.
- Setting up a qualified retirement plan. A defined-benefit plan can be a good way to reduce taxes while preparing for your retirement.
- Turn in an expense report and obtain reimbursement by years-end for any business expenses you might have incurred personally such as business mileage on your personal vehicle.
2009 Year End Planning Tips
Keep track of your business mileage, the rate for 2009 is 55 cents per mile. Please keep in mind IRS rules state that you must have kept a log of the miles you have driven to take this deduction.
Business owners should take additional steps to ensure the success of their businesses in 2010. If you expect a big change in your 2010 income, you should consult with an accountant now to minimize the tax impact. If you are a subchapter S corporation, you should plan to have the annual meeting of your Board of Directors as close to the new year as possible.
While this generic tax advice can be helpful to any small business, there are probably some specific steps your business can take to reduce taxes at the end of 2009. We have helped many small businesses in Atlanta and North Georgia minimize their tax liabilities and increase their profitability. We would be happy to sit down with you and discuss your situation. Please feel free to call or contact us.
John Dillard is an Christian Speaker/Author and an Atlanta CPA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!
Contact HIS CPA PC (A Christian Atlanta CPA Firm) today.
We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping.
Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock, Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.
Sphere: Related ContentRelated posts:
- Duluth CPA Firm Advises on 2009 Year End Tax Planning
- Atlanta CPA Advises on 2009 Year End Tax Planning Ideas for You and Your Business: Keep Your Tax Bill as Low as Legally Possible
- Duluth CPA Advises on Bookkeeping Issues for Atlanta Business Owners
- Duluth GA CPA Advises on Tax Return Preparation for Atlanta Business Owners
- Duluth GA/Johns Creek/Suwanee CPA Advises Atlanta Business Owners/Entrepreneurs on Bookkeeping & Financial Statement Issues
