- May 13th, 2013
- John Dillard
- A Christian CPA/Our Faith Walk, Income Tax Preparation of Corporate & Personal Income Taxes
Staying away from the most common pitfalls taxpayers make is critical to your personal financial success. Careful discernment and wise application of tax law is an essential and critical part of avoiding otherwise avoidable IRS notices, penalties, responsibilities, IRS audits and amendment of prepared returns.
Colossians 3:23 Whatever you do, work at it with all your heart, as working for the Lord, not for men.
As a Body of Believers, we are commanded to give unto Caesar what is Caesar’s. As such and based on the premise of the U.S. tax system, we as taxpayers are solely responsible for the initial filing of our returns and the fair and just filing of our lowest legal possible tax. Avoiding these top pitfalls that many fall prey to will be an integral step in the proper preparation of your return. To assist taxpayers in the process it is the predominant role of the CPA adviser to be aware of tax law, details of changes from year to year and to ensure that not only a legally prepared return is completed but also that only the lowest legal possible tax is paid. The below is a sample inquiry that might be forwarded to an client to ensure not only a smooth tax preparation process but also that you best interests and tax law are always appropriately applied and considered:
For your Personal Return:
-I did not see any cash contributions for charities whereas you had some last year.
-Did you ever pay the state income taxes on the prior amended personal income tax returns as these will be deductible on Schedule A of your personal return as an itemized expense. Per my notes you owed GA $1000 and that you are making monthly payments. Please confirm if this is what you are paying on. As the interest and penalties are not tax deductible, we need to prorate what State Tax has been paid. Please advise regarding the above and then when the payments started, monthly amount, when they will be complete and total to be paid total via state payment plan.
-Please use the below link for the valuation of your donated items to Goodwill and send to me detailed itemization reflecting these totals
-It initially appears as if we might be able to claim Earned Income Credit (for lower income years), which is a credit available if your children live with you full time and if you are the only one who can claim them. Please review/advise.
Tentatively it looks like that you will be due refunds from IRS of approx. $2500 and from GA $400. The larger refund from IRS is due to your lower income year and your possible qualifying for the Earned Income Credit. Please review advise.
Like our faith in God, prudent planning, wise application of the law and staying the course are always a judicious path to follow.
Hebrews 6:17-19 Because God wanted to make the unchanging nature of his purpose very clear to the heirs of what was promised, he confirmed it with an oath. God did this so that, by two unchangeable things in which it is impossible for God to lie, we who have fled to take hold of the hope offered to us may be greatly encouraged. We have this hope as an anchor for the soul, firm and secure.
Serving Lawrenceville/Snellville/Norcross/Roswell as an Award Winning CPA for Decades
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And this is only some of the information available on our web site. You also have at our blog a host of other varied and timely tax and business management issues you can use.
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) 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 Christ 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.