Award Winning CPA on Helping Clients With Offer in Compromise & IRS Tax Representation Issues
Proudly Serving Atlanta Tax Representation Issues for Over 30 Years
In light of the recent and dramatic downturn in the economy I have had to help many business owners and entrepreneurs file their final corporate/business and income tax returns to record the dissolution of their business. Whether you be a Partnership, Proprietorship, S Corporation, C Corporation, LLC or LLP there are certain steps and procedures that must be carried out in the closing of your business.
All business’s, per IRS rules and regulations, should file the last corporate income tax return for the business being sure to mark it as final. This would be a Form 1120 is a C Corporation, a Form 1120S if an S Corporation, a Form 1065 if a Partnership or multi-owner/member LLC, or a Schedule C as part of your personal return if either a Proprietorship or single member LLC. You would also want to be sure to notify the Secretary of State in all states where you business is either domiciled or legally registered.
Also you will want to be sure that you have filed all of the required payroll, sales tax reports, and business licenses. To gain a feel for these I suggest visiting:
Becoming a new Employer in Georgia Checklist
An easy to review source of many of the forms, applications, and procedures you will need to be apprised of to ensure compliance with a variety of taxing authorities. http://www.hiscpa.com/employee-checklist.html
Payroll Tax Withholding
Employers are required to withhold portions of each employee’s salary and pay additional taxes to local, state and federal governments. This article discusses the types of taxes that must be withheld or paid. http://www.hiscpa.com/payroll-tax.html
Frequently when working with the IRS or state to resolve past and current tax issues, it is necessary to retain a CPA to help and assist in both the filing and payment of these monies. To that end, I have supplied below a sample letter filing a power of attorney to address all of their tax issues and final disposition of their business.
401 West Peachtree Street
Atlanta GA 30308
I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to consider submitting an Offer in Compromise on their behalf. I am willing/eager to supply you with any information that you might need in order to process the Offer. I am working with the client to get their tax filings and payments current ASAP.
Please note that I have advised the taxpayers that after the acceptance of their Offer that they must stay in compliance by keeping all of their filings and payments current for five years. They have further been advised that in the event they do no maintain the above that the previously accepted offer would be voided and the previously abated monies would be reinstated.
Please suspend your file for forty-five days while I work to get from the client all of the information you have requested.
Please cease all collection efforts while this Offer is being considered for submission and I work with the client to get all of their filings and payments current.
Sincerely, John C. Dillard, CPA, PC, Partner in Charge
www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Offering Corporate and Personal Income Tax Returns, Offer in Compromise, Tax Advocacy, Tax Mitigation and Tax Compliance, Back Taxes, IRS Representation, IRS Appeals, IRS Collections, IRS Installment Plans & IRS Wage Levies