Getting Ready for an IRS Audit
Atlanta CPA: Getting Ready for an IRS Audit: The First Step Towards a Successful IRS Audit Experience
Help in Appealing Tax Issues. Need Help Filing of Old Tax Returns? IRS Tax Penalties Got You Down?
New Testament tells us Jesus is our Intercessor with God so should taxpayers seek out a CPA who is well versed in IRS tax representation issues.
“My intercessor is my friend as my eyes pour out tears to God” Job 16:20
We all need help with our Faith Walk, so do taxpayers need an CPA who advocates, supports and defends you before the IRS being sure that you pay only your lowest legal possible tax. Don’t fall for adds promising roses by settling for penalties on the dollar, addressing tax representation issues is not a one size fits all. The below is sample letter we might send to the to a tax client to get ready for an IRS Audit Appeals meeting:
In getting ready for the audit meeting on next week….
Due to the volume of changes being made I suggest that your internal controller/bookkeeper comes to my office to go over the new financials ASAP. Many of the changes can be worked on and completed while the rest of the below data is being prepared. I suggest bringing to this meeting all of the below:
• A new balance sheet and profit and loss for both years reflecting all of the changes discussed and need including:
• The recording of the new business purchase and the depreciation and amortization of intangibles for both years (be sure to bring a copy of the agreement to the meeting).
• Adjusting sales for dollars not yet reflected.
• Adjusting expenses for any dollars/copies of business expenses not yet reflected. It will be essential to bring these business receipts to the meeting. Business expenses and their adequate documentation is key to running a successful business. Learning the ins and outs of what is required will both raise the efficiency of how you run your business and ensure that you always have proper documentation in the event of an audit. See http://www.hiscpa.com/business-expenses.html
• Please bring to the meeting copies of all year-end bank statements and reconciliations.
• Please bring to the meeting of the year-end inventory detail and cost by item at the end of the year.
• Please bring a copy of the detail of open Accounts Payable at year at the end of the year.
• Pease bring a copy of where the business was sold along with how that entry was recorded on the company’s books, being sure to separate out from sales any gain or loss on the transaction.
• Information as reported on the business sale will change dramatically when the changes above are noted as they are presently listed on IRS Form 4797/Sale of Business Property.
• Work with your bookkeeper/controller to record all open Promissory Notes to reflect all Debt that the company has. I recommend having a Promissory Note covering all of the detail (all individual loans received and all individual loans made by payment) for each year being sure to list each and every detailed item and then showing the year-end balance.
• For all Promissory Notes I suggest you attach copy of loans and repayments and narratives detailing any direct payments (from the company to an outside lender On the company’s books you would want to ensure that these monies were coded against the loan account).
• I suggest you not show any Shareholder Distributions for the company for either of the years and that all of these monies be coded back to the loan account.
• Cleaning up the balance sheet liabilities to properly reflect debt as the income corporate return reflected $20K of Corporation Loan which you advised did not exist. We help Atlanta business owners compile and understand their internal books and records. We provide accounting and bookkeeping solutions to Atlanta entrepreneurs and business owners with guidance to help ensure your business success. Visit http://www.hiscpa.com/bookkeeping-accounting.html
Need Help With Your Atlanta Back Taxes, Tax Problems or an Offer in Compromise? http://www.youtube.com/watch?v=bPjPAnGVzZw
Need Help With Atlanta Tax Problems and IRS Representation? http://www.youtube.com/watch?v=friIW_yjQcE
His CPA PC (A Christian Atlanta CPA Firm) www.HisCPA.com We serve clients that are located in Atlanta GA, Gwinnett County, Duluth, Lawrenceville, Snellville, Dunwoody, Lilburn, Decatur, Tucker, Suwanee, Cobb County, Forsyth County, Berkeley Lake, Dacula, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross & Beyond as a Faith Based CPA Firm.
Your Rights as a Taxpayer
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