Be Sure Your Corporate Income Tax Returns are Correct Before They Are Filed
When running your business it should be clear from an independent observer that all business deductions were incurred for the furtherance of the business. This includes advertising, administrative duties, overhead and other expenses incurred to produce or provide the product or service to be delivered. Direct expenses (typically called Cost of Goods Sold) incurred in those efforts will be most obvious, as the absence of this occurrence will result in a product not being delivered.
Frequently some expenses however, do not have the direct correlation to the business on the outside looking in. Thus, on many issues it is necessary to look at the intent or the reason why an expense was incurred. For example, the sponsoring of a marketing event is done by business to further its advertising efforts. By raising awareness of its participants and attendees, business’s often underwrite and support such events to raise name recognition, gain market share and to increase brand loyalty. Often times an experienced CPA can do much to ensure that your past returns are correct and to that end it is prudent to work with a CPA who will review, as a part of their initial startup) you past returns; the below is a sample letter that might be used to ensure that past returns are correct as filed:
In getting started on your returns I had the below questions….
You had advised that the 2010 Corporate Income Tax Return has not yet been done but yet on schedule E of your personal return it indicates that the corporate return has been done. Please review/advise.
I recommend that all of my corporate business be done in the name of the company, yet the below items were listed on your personal return as having been earned personally. You had advised that all business monies earned were done in the corporate name and deposited into the corporate name but yet you had listed on the below personal returns on your Schedule C the below monies.
John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author/CPA) for your business group or church congregation, you can contact him today at 770.814.9304. “Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”
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, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and 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.