Accounting News and Notes

Duluth/Atlanta CPA Saves. Taxpayer $26,000 plus in Previously Assessed IRS Tax Penalties 

Tax Representation is not for those who choose to represent themselves as just as Believers have Jesus Christ to be an Advocate with us with our Heavenly Father (Job 16:19), so should all taxpayers seek to work with a CPA who is well versed with tax representation issues. Recently we had the opportunity to retain a new client who had utilized the services of someone who was not a CPA nor familiar with IRS tax representation issues. Though it took some number of months to address adjudicate the issue, we recently received notification that the IRS abated over $26, 000 in Tax Penalties that had previously been assessed a taxpayer. 

Don’t be misled by services telling you can settle by services telling you can settle for pennies on the dollar, as this is partly but mostly not based in absolute truth as often tax penalties such as the above can were abated 100%. However the IRS will not abate any monies during an Offer in Compromise process unless a taxpayer qualifies, which in itself is a facts, strategy and procedural process. No CPA can guarantee what anyone will do much less the IRS, care should be taken to ensure that the client is well apprised on the reasonable scenarios that may occur and frequently well able to advise that tax payment rather than representation is the best process. 

Below are articles that you will want to refer to often to help guide you in addressing IRS Representation issues as you address Installment Plans, Back Taxes or an Offer in Compromise. 

Solving Atlanta IRS Tax Issues
Don’t fight the IRS but work with them to resolve your tax problems. Discover a myriad of legal ways the IRS is eager and willing to work with you to resolve any unpaid debts, penalties, and interest. To learn more http://www.hiscpa.com/working-with-the-irs.html

Paying Your Taxes – Withholding & Extensions for Metro Atlanta Taxpayers
Paying your taxes made easy. This section will enable you to quickly grasp the general guidelines of tax law requiring that you pay taxes as you earn money. As well, extensions and their uses and limitations are disclosed and discovered. Visit http://www.hiscpa.com/paying-taxes.html

How to Avoid an IRS Audit for Atlanta Taxpayers
Discover simple steps that you can do to help prevent an IRS audit. Though the tax code is at times very difficult to understand and comply, these basic simple steps will help you avoid an IRS audit. See http://www.hiscpa.com/avoiding-audits.html

Solving IRS Tax Problems: Submitting an Georgia Offer in Compromise
When all else fails and if you qualify, the IRS and Georgia both have a program which will enable you to work to solve the severest tax problems. Visit http://www.hiscpa.com/offer-in-compromise.html

Utilizing IRS Installment Plans for Metro Atlanta Taxpayers to Pay Your Past Due Taxes
The IRS has long been in the business of helping taxpayers get back into the system to ensure that taxpayers are able to pay their taxes over time. For those who do not qualify for an Offer in Compromise or to pay the taxes and interest in full, while seeking penalty abatement, an Installment Plan is a prudent and wise choice and alternative to get your past taxes due paid and current. See http://www.hiscpa.com/installment-plans.html

 John Dillard, CPA of His CPA, PC (A Duluth CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    (All Rights Reserved) 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. To discover John Dillard’s Published Books and their vision visit  http://www.john-dillard.com/

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.

Suwanee/Duluth/Gwinnett/Atlanta CPA on Advises on Back Taxes and Tax Problem Resolution for Atlanta Taxpayers 

For those in the midst of addressing IRS tax issues and trying to evaluate between an Offer of Compromise or an Installment plan, frequently the options look bleak, as often they are. However there is good news for those who are desirous to look “outside the box” in looking to solve your IRS tax problems. Knowing the ins and outs of varying programs will do much to help you know what is in your best interest. My best advice is to encourage personal or business taxpayers who owe more than $10,000 to the IRS or GA/State is to seek out a CPA who is well experienced in such matters. Below is a sample letter that might be sent on behalf of a business client seeking to address unpaid payroll taxes, unfiled reports and Civil Penalty Assessments: 

IRS, Atlanta GA 39901 

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to address all the monies they presently have open with the IRS, including both payroll taxes and income taxes.  I am willing/eager to supply you with any information that you might need in order to process their case and to pay any and all outstanding monies.  

I have previously forwarded a copy of their previously filed 2009 corporate income tax return. I also in my prior letter forwarded, a copy of their detailed fixed asset schedule as of 12/31/09,their 2009 financial statements and Form 433B for your review. 

Enclosed please find a check for $3,000 to be applied as follows:

Form 941 for 1-31-09        $ 1000.

Form 941 for 3-31-10           2000.

Total Check Enclosed        $3000. 

I have enclosed copies of the 2009 W-2’s in question for which taxpayer advised me that they had timely filed. Accordingly please abate the previously assessed penalties. I look forward to working with you to satisfactorily address all open client monies and to get all of their returns filed. 

Sincerely, John C. Dillard, CPA, PC, Partner in Charge

Psalm 33:5  The LORD loves righteousness and justice; the earth is full of his unfailing love.

 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/    http://www.john-dillard.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 

His CPA PC…A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits. Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it! 

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.

Christian CPA for Corporate Taxes/Offer in Compromise/Back Taxes

How His CPA, PC became a Christian CPA Firm

At His CPA PC we strive to do business the old fashioned way giving our clients much more than they thought they needed. In our ever changing economic times, it is even more important to stay ahead of the power curve in addressing your business issues, trends, and tax planning. John Dillard, CPA the firm’s founder desired to develop a firm which lived out the “Golden Rule” in serving others and the community. By offering this information gratis, Mr. Dillard’s desire is to heighten the understanding of his fellow business owners and taxpayers and to contribute back to the community in which he lives and works.

For the individual or business taxpayer who has run afoul of the IRS and is dealing with seemingly overwhelming tax issues, there are words of wisdom to successfully resolve your tax problems, how to pay your taxes on a timely basis by properly utilizing withholding, estimated payments, and extensions. Though there are many things we can do to help you avoid tax problems and unnecessary penalties, we can also help you discover the general guidelines and rules of how to qualify for and process an Offer in Compromise. This is a process where both the Internal Revenue Service and the State of Georgia will reduce your bill to what you can afford to pay based upon detailed tax regulations, procedures, and careful compliance.
We work closely with you to help resolve tax issues, penalties, back returns, liens, levies and garnishments. Our keep it simple style in dealing with technically difficult and sensitive issues are embodied in our ability to keep you well informed of the progress on your account as it works its way through the tax system. Call us today to be sure that all of your rights are protected and that you pay only your lowest legal possible tax.

Serving as an Award Winning CPA for Decades

http://www.hiscpa.com/article3.html Gwinnett/Duluth CPA Teaches Personnel Keys to Managing Business Growth
http://www.hiscpa.com/article6.html Alpharetta/Roswell CPA Teaches the Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html Norcross/Sandy Springs CPA on Tracking Marketing Statistics for Your Georgia Business
 
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/    http://www.john-dillard.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

 Serving Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming, Los Angeles, Chicago, Houston, Philadelphia, Phoenix, San Antonio, San Diego, Dallas, San Jose, Detroit, Indianapolis, Jacksonville, San Francisco, Columbus, Austin, Memphis, Baltimore, Fort Worth, Charlotte, El Paso, Milwaukee, Seattle, Boston, Denver, Louisville, Washington D.C., Nashville, Las Vegas, Portland, Oklahoma, Tucson, Albuquerque, Long Beach, Atlanta, Fresno, Sacramento, New Orleans, Cleveland, Kansas City, Mesa, Virginia, Omaha, Oakland, Miami, Tulsa, Honolulu, Minneapolis, Colorado Springs, Arlington, and Beyond.

Lawrenceville/Snellville/Buford CPA on IRS Installment Plans/Back Taxes/Offer in Compromise

While you are in the throes of handling IRS tax issues and trying to evaluate between an Offer of Compromise or an Installment plan, frequently the options look bleak, as often they are. There are options for taxpayers to look “outside the box” in looking to solve your IRS tax problems. Knowing the ins and outs of varying programs will do much to help you know what is in your best interest.

 IRS Form 9465 for IRS Installment plans are essentially long range, but are frequently the most convenient way to solve an IRS tax bill short term. However this option is frequently the worst option financially as interest and penalties continue to be assessed thus ensuring that you continue to owe even more additional monies rather than less. Before looking to set up an IRS Installment Plan, you look to other options available such as a loan from a bank, friends or family members.

Job 16:19
Even now my witness is in heaven; my advocate is on high.

Due diligence and wisdom should be exercised when doing your cash flow and to plan long term to ensure that you will be able to fulfill the financial commitment you make in a Formal IRS Installment Plan. For example, if you owe taxes for the 2008 tax year and have not yet filed your 2009 returns and have not yet done adequate tax planning for 2010, setting up an Installment Plan with the IRS might be one of the worst things you can do. Care should be exercised to both, get all of your 2009 returns filed first and then to evaluate your 2010 taxable income to ensure that you will have the taxes and monies to pay all of the tax years in question. Failing to do so can be especially problematic as one of the rules of being on an Installment Plan is that you have to stay current on all of your filings and payments for the duration of the payment period, or the IRS will void the Installment Agreement and reinstate collection efforts. Carefully evaluating all of your options allows you to have a much less problematic agreement and avoid unnecessary headaches, professional fees, and additional fines, penalties and interest. As with all IRS representation issues it is prudent to retain a CPA who is well-experienced in such matter as well as to have an Advocate to speak on your behalf. Below is sample of such an advocate letter that might be used to ensure your rights as a U.S. taxpayer are ensured:

Taxpayer Advocate Office,                                

Ogden, UT 84402 

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to process 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 have attached for your convenience a copy of our most recent correspondence to the IRS Offer in Compromise Office in Atlanta detailing the issues of the case and requesting to take the case to Appeals if necessary. The crux of the area of disagreement is below and detailed in the attached letter. The taxpayers are desirous of getting “back into the system” as a compliant taxpayer ASAP.
I look forward to working with you to help you process and close their file and please do not hesitate to call me should you have any questions. 

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/    http://www.john-dillard.com/ 

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it! 

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

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.

Atlanta/Gwinnett/Duluth CPA Provides Top 10 Tax Tips to Successful IRS Representation/Audit Resolution/Tax Advocacy 

Having been a CPA for the better part of three decades and having worked with thousands  and thousands of tax returns over that time I have learned that there are several key areas of representation issues where taxpayers struggle and most often fail at addressing key tax representation issues. 

Top Ten Tax Tips to Successful IRS Representation

1. Business Tax Returns Not Prepared by a Qualified CPA. Don’t underestimate the importance of the CPA designation. Remember, those three letters are awarded only to those individuals who have passed a rigorous two-day uniform national examination. In addition, CPAs are distinguished from other accountants by stringent state licensing requirements. Most states require CPAs to have at least a college degree or its equivalent, but several also require post-graduate work. The most frequently improperly prepared returns I see are business returns signed by a prepare who is not a duly licensed and certified CPA.

2. Improper Entity Selection. Your initial choice of entity is perhaps the most important tax, financial and legal decision you might ever reach. Being well versed in these areas is essential to a wise and prudent decision. Carefully considering the tax effects of your entity choice is essential to getting your business off on the right foot. Being careful to avoid, if at all possible, the double taxation of C Corporations and then selecting the right entity for your business from both a tax and legal perspective is critical. Frequently it is tax advantageous for business setting up initially as an LLC or a C Corporation to make a tax election to convert to an S Corporation for tax purposes, by filing IRS Tax Form 2553. 

3. Automobile Mileage Logs. Generally I recommend that all clientele buy their vehicles personally and then turn in expense reports to get reimbursed for their business miles using the IRS’s statutory mileage rate.  Primarily this is an advantage because it almost always results in a larger tax deduction than if the car were purchased and depreciated in the corporate name. IRS tax law requires all taxpayers to keep a day-by-day log to support the business miles claimed and personal miles utilized. I have found that the easiest place to track and record this information is on my business calendar. 

4. Integrity & Value. I had always felt it was my mission to witness to those I came in contact with in both my business and social contacts, but God continued to lay it on my heart that He wanted much more. God is calling wants us to be much more overt, but loving, to share the love of God and to live our live with Integrity and Value for not only the work we do but most importantly with the lives we intersect. As Believers we should all constantly search for opportunities as we are Taking Christianity Into the World. 

5. Handling Your Own Audit. A satisfactory and successful audit process will include many factors and variables consisting of, first and foremost, calling your CPA. A CPA, who is familiar with you, your business and tax law is far more apt to successfully close an audit with no changes. Your Certified Public Accountant is the absolute best choice to address your audit and to better represent you and your business’s issues to the IRS using both the law and knowledge of your business to your best advantage. 

6. Determining Valid Business Deductions. It should be clear from an independent observer that a deduction was incurred for the furtherance of the business, and was a “necessary” expenditure of the business.  This would include all expenditure of the company. For all expenditures $75 the IRS requires that a receipt is required.   

7. Poor Financials & Record Keeping. Each and every hour of a business owner’s day, there are a series of insignificant and important thoughts and directions that directly impact the profitability of a business. Continually you are faced with making a positive impact towards bringing your business closer or further away from your goal. A company’s financial statement is the measuring stick by which you are able to gauge a company’s progress along the business continuum and are able to accurately measure the distance between where you are and where you want to be. 

8. Utilization of a Payroll Service. Payroll is the largest and most burdensome administrative responsibility for a business owner. Whether you have one employee or a thousand, both the IRS and your state has a myriad of payroll reports and deadlines for which you are required to complete. Unfortunately there is not a one-stop shop to pay and report all of the varying deadlines and taxes. However, there is a solution that makes the reporting of payroll dramatically more seamless than if you strive to go it on your own. 

9. Using Tax Software.  If you have ever performed your own major surgery without being a duly licensed and trained doctor or if you have ever attempted to fly to the moon without being either a highly skilled pilot or astronaut then you might want to fly full steam ahead. As a CPA I have learned and continue to learn that I do not know what I do not know and that buying technology to help me get there faster is akin to using speed dial to dial wrong numbers faster. Just as the tools of a skilled surgeon will not enable me the skills, knowledge, verve and wisdom of a Board Certified Physician, neither will a software program make you a skilled CPA:  Never Underestimate the Value.

10. Talking to the IRS. Most often it is advantageous for the CPA alone to meet with the IRS so as to remove any emotional issues, which might otherwise surface and dampen the ability to successfully and quickly resolve the process. Frequently when taxpayers strive to handle their own audit by themselves they fail to sense and adequately address the issues the IRS request; thereby causing themselves unnecessary hardships and economic loss. 

Tour our on line articles to help you get informed about IRS Representation Issues

http://www.hiscpa.com/irs-selection.html Atlanta/Marietta CPA Teaches How Audits Are Selected
http://www.hiscpa.com/irs-audit.html Gwinnett/Forsyth CPA Advises on How to Handle IRS Audits
http://www.hiscpa.com/working-with-the-irs.html Atlanta/Cobb Christian CPA on IRS Representation
http://www.hiscpa.com/paying-taxes.html Gwinnett/Suwanee CPA on Paying Your Taxes and Extensions
http://www.hiscpa.com/avoiding-audits.html Duluth/Cumming/Forsyth CPA on How to Avoid IRS Audits
http://www.hiscpa.com/offer-in-compromise.html Atlanta/Cobb CPA Advises on Offer of Compromise, Back Taxes and IRS Problem Resolution 

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/    http://www.john-dillard.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 

His CPA PC…A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits 

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

Atlanta/Lawrenceville/Snellville CPA on Surviving an IRS Audit of Your Business & Personal Income Taxes

If you just opened your mailbox and much to your chagrin you have received an IRS notice. Your immediate reaction is one of fear and dread as your pulse races and you are not certain of what to do next. Although most certainly your initial reaction will be as described, there is a different path to resolving all audit issues to yours and the IRS’s satisfaction and to close your audit with no additional monies due, assuming of course your return has been properly prepared. Below is a sample letter we might receive from a taxpayer in the throes of addressing an IRS tax audit:

I’m looking for someone to help me with my 2008 & 2009 Business and Personal income tax returns that were audited and we ended up owing the IRS over $45K. If you would agree to take a look at my tax returns and to see if you could help address this IRS tax audit. Any help you can give would be greatly appreciated or maybe even if you can recommend someone in this area if you don’t serve this area.  Thanks and God’s Blessings,

Below is my response:

A successful audit process will include many factors and variables consisting of, first and foremost, calling your CPA first. Your tax adviser is the absolute best one to address your audit and to better represent you and your business’s issues to the IRS using both the law and knowledge of your business to your best advantage. The first step to address after a return is selected for audit, aside from calling your CPA, is to review the return in detail. Try to evaluate, from an independent perspective, your return, carefully evaluating what an IRS agent might be seeking most to review. After you have done this initial step you should then evaluate your documentation to see if you might need to accumulate any additional information to collaborate and support your return. During this process you should not discover anything new as all of these issues should have been adequately addressed before your return was prepared, signed, and forwarded to the IRS. However this process is critical to ensure that there are no holes in your paperwork, which might later cause you difficulty.

A Christian CPA Firm: Never Underestimate the Long-Term Value

Serving Lawrenceville/Snellville/Norcross/Roswell as an Award Winning CPA for Decades

http://www.hiscpa.com/article3.html Gwinnett/Duluth CPA Teaches Personnel Keys to Managing Business Growth
http://www.hiscpa.com/article6.html Alpharetta/Roswell CPA Teaches the Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html Norcross/Sandy Springs CPA on Tracking Marketing Statistics for Your Georgia Business 

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/    http://www.john-dillard.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.

Atlanta/Alpharetta/Norcross CPA Teaches Atlanta Taxpayers How to Address Unpaid Income Taxes/Back Taxes 

I recently got a letter from the IRS saying that I owe tens of thousands of dollars in back taxes . I remembered that I worked a job that that was a From 1099/Independent Contractor but forgot to pay for the taxes back for 2006 to 2009. I would like to know if its possible to pay for this in a monthly payment and maybe try to get the payment lowered. reason will I picked you guys is because your faith in our Lord Jesus. I am a Christen  and have made Christ  the Lord of my life. I would like to talk to you guys on the phone. Call me at any time.

Below is my response: 

Setting up an Installment Agreement

Georgia/States & the  IRS will work with taxpayers to pay the monies owed over time. This option requires the taxpayer to file a form requesting that a specified amount be paid monthly over time. The IRS then has to accept the plan prior to it becoming effective. Though this is a practical way to address a larger balance over time it does not stop the assessment of penalties and interest which will continue to accrue until all monies are paid in full. Thus, it is most advantageous to consider procuring the funds from other sources as these finance/carrying charges are usually much less than that of the Internal Revenue Service.

Options for Penalty Abatement

The IRS can use a myriad of penalties and interest to encourage compliance, including information return penalties, non-filing, non-payment, estimated payment, and failure to deposit penalties. If you are assessed penalties for any reason you still have options. Both the IRS and states will work with you to address your outstanding taxes, interest, and penalties. One of the first defenses to explore is whether you have reasonable cause for your original failure to address you past returns and outstanding monies. If you are to be granted relief under these provisions you will need to be able to show that you have exercised ordinary business due diligence and care in calculating your tax obligations. You will need to be able to illustrate that obligations were generated when circumstances existed which were beyond your control contributed to the monies being owned and assessed.

Unfortunately the lack of knowledge of a law is not a valid defense that can be successfully used when attempting to request penalty abatement, as you are required to be prudent in addressing your obligations and responsibilities. Our tax system is one of voluntary compliance and tax penalties are the vehicle by which the IRS uses to ensure that you are financially motivated to file and pay your taxes as they become due. The IR S’s goal is to provide a consistent and fair methodology to assessing penalties to provide civil tax penalties to ensure ones tax obligations are satisfactorily addressed.

When evaluating penalty abatement issues the IRS will consider whether or not a penalty will cause a significant hardship such as a levy might impair a taxpayer’s ability to acquire needed medical care. As well a death, serious illness, or unavoidable absence may establish reasonable cause for considering penalty abatement. However items such as forgetfulness, ignorance of the law, and making a mistake are not generally allowed as reasonable cause in evaluating penalty abatement issues. The IRS will work with you to set up an installment agreement to pay outstanding monies as well as perhaps an Offer in Compromise if you qualify.

Serving Lawrenceville/Snellville/Norcross/Roswell as an Award Winning CPA for Decades

http://www.hiscpa.com/article3.html Gwinnett/Duluth CPA Teaches Personnel Keys to Managing Business Growth
http://www.hiscpa.com/article6.html Alpharetta/Roswell CPA Teaches the Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html Norcross/Sandy Springs CPA on Tracking Marketing Statistics for Your Georgia Business 

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/    http://www.john-dillard.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.

Tucker/Alpharetta/Atlanta CPA on Effective and Directed Communication to Address Atlanta IRS Tax Problems and Back Taxes

Dealing with the IRS in addressing tax issues requires several things including first a good CPA who is well versed in tax law, has a proven and well documented record of success in dealing with the IRS and a dogmatic pursuit of helping taxpayers ensure they pay their lowest legal possible tax. Below is a example of such a piece of correspondence geared towards addressing open and unpaid back taxes and developing pragmatic opportunities for all involved to resolve unpaid taxes:

Internal Revenue Service

Atlanta, GA 39901 

RE: Client_______________SS#_____________for the tax years___________

Enclosures: A Power of Attorney 

Dear Sir or Madam, 

I am following up to my previous letters to get a detailed record of account for the above referenced taxpayer detailing all of their payments and their outstanding balance. Please cease all garnishment efforts on the above referenced client. A garnishment will be a financial blow to the clients that I do not anticipate they will be able to recover from to address both their Georgia monies owed as well as the federal Offer of Compromise that is presently pending in the IRS Appeals Office. 

I am following up on the taxpayers open monies due Georgia and the IRS and to set up an Installment Agreement thereon. I have previously forwarded for your review a copy of the last piece of correspondence regarding their IRS Offer in Compromise. As you can see from the previously forwarded correspondence the taxpayer has no substantive assets, cash flow or funds of any type. This is the most they are able to commit to at this time. Accordingly, please cease all garnishment efforts while this Installment Agreement is being processed.  

I have previously forwarded Installment Plan Request Form 4506 for the above referenced taxpayer listing the most that they would be able to commit to on an monthly basis as $125 per month. In this package the client has been able to commit to having a $325 monthly payment. We sent this request to be confirmed in writing on 02-23-10 and to date have not yet received any confirming correspondence. Accordingly I have asked the client to send a check for the first monthly payment by 4-1-10 and to continue to pay monthly until the account balance is paid in full. The taxpayers are desirous to settling all of their tax debts and this will be a positive step in that direction.  

Please accept this Installment Plan as originally forwarded. 

Please do not hesitate to contact me if you have any questions or need any additional information.

Sincerely, John C. Dillard, CPA, PC, Partner in Charge

Contact HIS CPA PC (A Christian Atlanta CPA Firm) today.

To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html 

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!    

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.

Atlanta/Gwinnett/Fulton CPA Addressing Tax Issues Successful Tax Representation for Atlanta Taxpayers for Decades… The IRS/Tax Representation Series

This is the Fourth article of the IRS & Tax Representation Series. Always be sure to tell the truth in all tax matters, audits and Offer in Compromise. 

Frequently I get questions that lead to some interesting conversations ranging from tax law to our faith and beliefs as Believers. Keeping Christianity Simple is what I believe Jesus came to teach and to share his message of love. But love, like all things of value can only be based upon the purity of truth. Recently I received this inquiry for a taxpayer who was undergoing an audit: 

I have a small business sole proprietorship and am being compliance audited on IRS Form Schedule C expenses. In preparing for the audit, I have discovered some mistakes I made when preparing my return in 2008 (double counting some expenses) and have lost some travel records for some trips I expensed. Should I mention this to the auditor or not?

A fellow Christian wants to know. Thanks! 

For whether you in the middle of an audit, submitting an Offer in Compromise, addressing back taxes or unfiled tax returns, putting your best foot forward requires one to deal in truth and truth alone. Though all taxpayers should aggressively work to get ever legal tax deduction they are allowed, they should always be grounded and interpreted under laws and statutes of tax code. You should absolutely mention this to the IRS agent and to ensure that this error is corrected and appropriate restitution is paid. To this end, I drafted the below in regards to the inquiry received: 

I would suggest always telling the truth. I also recommend you retain a CPA to help handle the audit as well as looking to incorporate your S Corporation for both tax savings and legal liability limitation. I will send you some information under separate cover.

Hope to meet you soon. 

In Him, John Dillard CPA, 770 814 9304

Paying Your Taxes – Withholding & Extensions for Metro Atlanta Taxpayers
Paying your taxes made easy. This section will enable you to quickly grasp the general guidelines of tax law requiring that you pay taxes as you earn money. As well, extensions and their uses and limitations are disclosed and discovered. Visit http://www.hiscpa.com/paying-taxes.html

How to Avoid an IRS Audit for Atlanta Taxpayers
Discover simple steps that you can do to help prevent an IRS audit. Though the tax code is at times very difficult to understand and comply, these basic simple steps will help you avoid an IRS audit. See http://www.hiscpa.com/avoiding-audits.html

Solving IRS Tax Problems: Submitting an Georgia Offer in Compromise
When all else fails and if you qualify, the IRS and Georgia both have a program which will enable you to work to solve the severest tax problems. Visit http://www.hiscpa.com/offer-in-compromise.html

Utilizing IRS Installment Plans for Metro Atlanta Taxpayers to Pay Your Past Due Taxes
The IRS has long been in the business of helping taxpayers get back into the system to ensure that taxpayers are able to pay their taxes over time. For those who do not qualify for an Offer in Compromise or to pay the taxes and interest in full, while seeking penalty abatement, an Installment Plan is a prudent and wise choice and alternative to get your past taxes due paid and current. See http://www.hiscpa.com/installment-plans.html

A Christian CPA Firm: Never Underestimate the Long Term Benefits

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html There you will also discover a wide host of resources for Atlanta Entrepreneurs.

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!    

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.

Duluth/Gwinnett CPA Addressing Atlanta Taxpayers on Successful Tax Representation Problems for Decades… The IRS/Representation Series

This is the Third article of the IRS & Tax Representation Series. Tax Representation is not one where you can just “settle for just cents on the dollar.” There is not a magic pill that one can take to just make their tax problem go away.

We Don’t Strive to be the Biggest IRS Representation Service in America, We Strive to Give Our Clients the Highest Degree of Service Possible. 

Being well-coordinated and well-informed as a CPA and by working closely with our tax clients is the best way to stay coordinated and effective in the tax representation process. Below is a sample letter that might be sent to ensure positive “traction” and results: 

I have just finished with your 2007 to 2009 personal income tax returns and will get getting them out in the mail ASAP. Please be reminded that both the IRS and GA will not give you refunds or credits for any returns that are over three years past their due date. 

For all the Georgia returns I suggest you both sign and date then and file each in separate envelopes to the addresses listed on the 2009 GA Return. After considering the GA refunds loss (see above) you are due a net refund from GA . I would suggest you write a check to send along with the 2009 GA Return (this is the only GA return where there is a tax due) to pay taxes and estimated penalties and interest for that year.  

For all of the IRS Returns I suggest you both sign and date them and mail back to me so that I might file them with the IRS along with a letter detailing your overall tax obligation, what you have already paid against these taxes, a check for the remaining balance and a request for the IRS to abate the tax penalties previously assessed. 

So that I might properly address the taxes due the IRS, please get to me ASAP all of the prior payments and monies that have been applied to your account for the 2007 to 2009 tax years.

How Audits are Selected
Learning about how audits are selected is the first step to discovering how to overcome the emotional and financial distress that normally occurs as part of the audit process. Lifting this veil will help keep you on an even keel in learning how to deal with the IRS audit. Visit http://www.hiscpa.com/irs-selection.html

When the IRS Notice Arrives
Rather than beginning the process in fear, discover how you can better prepare yourself so that you are not surprised at the audit process and its ultimate results. By seeing through to the other side you can best ready yourself to close your audit with no adjustments and no additional monies due. See http://www.hiscpa.com/irs-audit.html

Solving Atlanta IRS Tax Issues
Don’t fight the IRS but work with them to resolve your tax problems. Discover a myriad of legal ways the IRS is eager and willing to work with you to resolve any unpaid debts, penalties, and interest. To learn more http://www.hiscpa.com/working-with-the-irs.html

Contact HIS CPA PC (A Christian Atlanta CPA Firm) today.

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!    

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.

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