Accounting News and Notes

Atlanta CPA Saves Metro Atlanta Client $120,000 in Payroll Tax Penalties

One of the tax cases we personally handled involved an Atlanta Based client who had not paid almost three years of payroll tax returns, specifically IRS Forms 940 and Form 941.During this time the company collected but did not remit to the IRS the Federal Withholding Taxes, FICA, and Medicaid taxes. Also the company did not pay the matching taxes due as well as the Federal Unemployment taxes due and payable. For payroll taxes due and payable at the corporate level the IRS and Georgia both take a very dim view of business owners who will take and withhold taxes from their employees and then not remit these monies over to the taxing authorities.

Failure to pay to the Internal Revenue Service or to Georgia withheld payroll taxes is essentially the violation of the trust and responsibility to fulfill their fiduciary responsibility. To these end both the IRS and Georgia can assess a 100% Liability to all responsible business officers, owners and check signors who were responsible for and failed to remit to taxing authorities monies withheld from an employee’s paycheck. This is commonly referred to as the 100% Penalty. Having been an Atlanta CPA for decades, this is one area where I have personally witnessed several companies fall into “a financial abyss.”

However there is hope. There are three primary options when you get behind in your taxes to work with the IRS to resolve them including getting on an Installment Plan, Submitting an Offer in Compromise or paying the tax and interest in full while asking for abatement of the penalties. In the above referred to case the IRS had assessed approximately $210,000 of taxes, $12,000 of interest and $120,000 of penalties. By working closely with our client they were able to source funds from other sources to pay the taxes and interest in full, while asking that the IRS abate the $120,000 of assessed penalties. Though the case took several more months of work and negotiation than anticipated and we had to involve the Atlanta Taxpayer Advocate Office/Service, we were ultimately successful in saving the client $120,000 of penalties. To read more about the IRS and how best to deal with “taxing issues” take a look at these articles:

Surviving an IRS Audit

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. 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. http://www.hiscpa.com/irs-audit.html

Working with the IRS

Solving 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. http://www.hiscpa.com/working-with-the-irs.html

Paying Your Taxes – Withholding and Extensions
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. http://www.hiscpa.com/paying-taxes.html

How to Avoid an IRS Audit
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. http://www.hiscpa.com/avoiding-audits.html

Solving IRS Tax Problems: Submitting an 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. http://www.hiscpa.com/offer-in-compromise.html

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

Sample IRS Audit Letter in Anticipation of IRS Audit

Proudly Serving Metro Atlanta as a Christian CPA for Over 30 Years

When getting ready for an audit the first best call is to a well experienced CPA to ensure that both your rights but more importantly that you return is correct and prepared to best ensure your lowest legal possible tax. As a Body of Believers, though we are to submit to Authority, we are not required either by tax law or by our faith to pay more than our fair share and therefore just and legally liable tax obligation/bill.

All correspondence with the IRS should be an ends to an mean and help to encourage the client, the IRS and their agent to close their file as quickly as possible, while ensuring that you pay only your legally liable tax. To that end I have provided the below sample audit letter detailing what we did, the terms and even enclosing the check to pay the taxes and interest in full while asking for penalty abatement. For the easier a CPA can make it on the agent to adequately and efficiently close their file is a win for both the IRS and the client.

Internal Revenue Service

401 W. Peachtree Street

Atlanta GA

Enclosures: Power of Attorney

Dear Sir or Madam,

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to address their tax issues. I am willing/eager to supply you with any information that you might need in order to process the audit. I have worked with the client to get their tax filings correct for the _____ tax year and payments current ASAP. To that end I have prepared for you a Form 1040X for the _____ tax year.

Enclosed please find a check for $____ to be applied as follows:

Tax $ _____

Interest $_____

With the payment of the tax and interest in full I am asking that any potential penalty assessed be abated. It is my goal to help in their efforts to return to compliance. Since I have assumed the role as their financial advisor (they had none previously), I have consulted with them, and in good faith and within 30 days pulled all of the information together that you had requested.

I believe the penalty abatement is a just request as I believe the IRS is a fair institution designed to help taxpayers pay their just taxes.

I appreciate your attention to this matter and look forward to working with you to close their file.

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

Atlanta CPA Shows How to Resolve IRS Back Tax Issues

IRS rules are set out to assist those who are attempting to comply and to encourage all of us, either willingly or not, to file and pay our just and fair taxes. Tax laws, though complicated to the lay person, are often confusing. A CPA can help people navigate through the tax maze by making the complicated easier to understand. By seeking and following the advice of a trusted professional we are able to comply with tax law with the least amount of pain and aggravation. By not filing returns, not paying amounts owed when due, and attempting to tackle complex tax issues, we do not have the skill or wisdom to adequately address, many fall prey to our general inability to understand all of the nuances involved. A Good CPA can help address and solve tax issues.

Tax Problems

The best first issue is to review the reasons for the assessment. Many times during this process it is discovered that it is not a payment issue but the original returns filed need to be amended. After the determination of a just and fair tax, one can begin to adequately assess and make arrangements for the monies due. Great care should also be taken during this time to ensure that all payments and credits have been properly applied to the balance owed

Trust Fund Monies

In the event your business has employees or collects sales tax, the monies withheld from payroll and sales taxes collected are technically withheld “in trust.” As such they have legal exposure to both the company for payment, as well as those personally responsible parties who knew about and controlled such payments. A responsible party is generally defined as those who were most/responsible for payments that would well extend to check signers, accounts payable, officers, and financial staff. This assessment is for one personally who collected trust monies which they unduly did not remit to the appropriate taxing/legal authority. As these monies are withheld in trust, they do not belong to the company/business. Both the IRS and individual states take a very dim and stern view of all those who unduly use their money. A 100% penalty may be assessed to the responsible parties making them personally responsible for any collected and unpaid trust fund monies.

If a business is not able to pay its staff payroll taxes/remit collected sales taxes as due, it is a clear warning side that the business model is upside down. Though most times it would indicate that the margins of a business are not adequate to support the business’ present staffing levels and overhead, it could also be an indicator that the business is not properly leveraged/financed.

Installment Agreements

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.

Failure to File Penalties

Failure to File Penalties are assessed in addition to normal penalties and interest for those who do not make their payment and filings on a timely basis. Please be reminded that an extension does not allow a taxpayer to pay at a later date, as income taxes are generally due and payable as they are earned. However, a situation is greatly exasperated when a taxpayer does not file their taxes on a timely basis. Thus it is financially most advantageous to file a return even if a taxpayer does not have the monies to pay a return as the monies become due.

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Sandy Springs & Tucker as a Faith Based CPA

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

Duluth/Suwanee CPA on IRS Warning Against Using Unscrupulous Tax Return Preparers

The IRS is cracking down on Unscrupulous Tax Return Preparers and wants to be sure that America’s Taxpayers use only skilled, qualified, technically competent and legally licensed. This is even more important for business owners as their tax nuances, rules and regulations are even more complicated. At His CPA PC we suggest that all business owners:

• Stay away from tax preparers who claim they can obtain larger refunds than others.
• Use a Certified Duly Licensed CPA who has a track record of success and is widely recognized as a business leader in the community.
• Avoid tax preparers who base their fees on a percentage of the refund.
• Stay away from tax preparers who do not sign the tax return and provide you a copy.
• Be sure the CPA has track record of consistency, so you can be sure that the CPA will be around months/years after a return was filed to answer any questions that might arise from the IRS.
• Check the person’s credentials, references and grades. Be sure your CPA has a verifiable pursuing excellence.
• A CPA can represent taxpayers before the IRS in all matters, including audits, collection and appeals. Tax preparers, who are not duly authorized, cannot represent taxpayers for audits of returns.
• Be sure your CPA is affiliated with a professional organization (if you are seeking a Christian CPA, who is in good standing with their church body) and that your CPA’s continuing education is current and that your CPA complies with a code of ethics.

More information about choosing a tax return preparer making sure you find the right CPA for your tax/IRS Representation needs see:

Finding a Good CPA

What To Look For When Selecting A CPA
Selecting a professional is a daunting task. This guide will enable you to be better able to select a professional whose talent, expertise, and style will best assist you long-term see http://www.hiscpa.com/article8.html

Top 10 Reasons to Contact Our Firm
Learn the key reasons why His CPA, P.C. cares about your business and how you can benefit from being served by a CPA whose ambition for you and your business matches that of your own visit http://www.hiscpa.com/top-ten.html

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Sandy Springs & Tucker as a Faith Based CPA

Atlanta CPA: Addressing Back Taxes for Atlanta Taxpayers

The first thing we look to do when we meet with a client is to work to get their old back taxes filed. As soon as the back taxes are filed and we have worked with the taxpayer to ensure their present tax obligations are current. Then we can begin to address working with the taxpayer and the IRS to see what can be done to either pay the taxes and interest in full, while requesting penalty abatement by showing/proving reasonable cause as to why returns/taxes were late paid. Frequently this winds up being the best obligation as many/most taxpayers do not qualify to have an Offer in Compromise accepted as the process is much more involved and restricted. However we have great success at both.

How to Submit an Offer in Compromise: Which Tax Forms to Use

If you have a large tax bill owed to either the IRS or Georgia, there is a tax process called the Offer in Compromise which may be well suited to help you get beyond the mountain of tax debt and to negotiate a fair and just settlement with the IRS. The process requires you to be current on all of your tax filings and payments, thus the Internal Revenue Service or Georgia will first need to be able to verify that all of your respective corporate and personal income taxes, payroll taxes, and sales tax reports have been appropriately filed. If you are a corporate taxpayer or have been a proprietorship and have a payroll, the IRS will need to be able to ascertain and confirm that you are current on these payments and filings as well. If you are doing an Offer in Compromise to the state of Georgia then having your payroll reports, income taxes and payments current as well as any applicable sales tax reports will also be a pre-requisite to submitting an Offer.

Submission of an Offer in Compromise. Filing of the Offer Form (Form 656), the Collection Information Statement for Wage Earners and Self-Employed Individuals (Form 433-A), and the Collection Information Statement for Businesses (Form 433B) are the core paperwork to be initially submitted with the Offer in Compromise. Attendant with this filing is wide host of required documentation which needs to be submitted with the Offer to validate the deductions claimed.

Form 656: Offer in Compromise. This form is the actual Offer itself. The Offer when submitted to the Internal Revenue Service needs to include a check for $150 along with a check for at least twenty percent of the amount you are proposing to settle your total outstanding taxes. On the Form you will also indicate how the balance of the monies will be paid after an Offer in Compromise is accepted. Generally the best option is to pay the balance within thirty days of acceptance of the Offer, although by law the IRS can extend a payment schedule for up to two years.

Form 433A: The Collection Information Statement for Wage Earners and Self-Employed Individuals. This form is used by all taxpayers who are filing an Offer in Compromise for tax monies, which they personally owe. Accordingly for all those who receive a paycheck with payroll withholding or have a business proprietorship will utilize this form to file along with Form 656. This form will list all of a taxpayers (and if a joint offer, their spouse as well) assets, liabilities, credit lines, insurance values, retirement plan balances, monthly cash inflow and outgo in accordance with prescribed IRS criteria. Attendant to the forms instructions there is a wide host of documentation which also should be attached including monthly pay stubs, bank statements, billings/statements, and proof of expenditures.

Form 433B: Collection Information Statement for Businesses. If you are submitting an Offer in Compromise for your business for either payroll taxes withheld and not paid or for unpaid income taxes if a C Corporation, then you will use Form 433B for the submission. This schedule will also list all of the assets and liabilities of the business along with a profit and loss showing the year to date profit for the current year. Most of this information can be obtained from the company’s internal books and records (i.e., their balance sheet and profit and loss). Details of where the company banks, account numbers, loans, loan numbers, offsetting balances, monthly payments are examples of the additional information which will also need to be supplied. Copies of items such as the last three monthly bank statements, open accounts receivable and accounts payable detail will also need to be provided.

Generally an Offer in Compromise will take at least a year to process and it is not a task you will want to take on without the skill of a good Atlanta CPA to guide you along the way.

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Sandy Springs & Tucker as a Faith Based CPA

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

His CPA (a Christian CPA firm)

Duluth/Suwanee CPA Proudly Serving Gwinnett for 30 Years and our Comprehensive List of Services

Contact John Dillard CPA at 770 814 9304 and let’s get started today.

http://www.hiscpa.com/irs-selection.html Atlanta CPA Teaches How Audits Are Selected

http://www.hiscpa.com/irs-audit.html Georgia CPA Advises on How to Handle IRS Audits

http://www.hiscpa.com/working-with-the-irs.html Atlanta Christian CPA on IRS Representation

http://www.hiscpa.com/paying-taxes.htmlGwinnett CPA on Paying Your Taxes and Extensions

http://www.hiscpa.com/avoiding-audits.html Duluth CPA on How to Avoid IRS Audits

http://www.hiscpa.com/offer-in-compromise.html Atlanta CPA Advises on Offer of Compromise, Back Taxes and IRS Problem Resolution

http://www.hiscpa.com/comparing-tax-methods.html Gwinnett CPA on National Sales & Flat Tax

http://www.hiscpa.com/article6.html Gwinnett CPA Advises on Tax Effects of Entity Choice

http://www.hiscpa.com/about_us.htm Providing Accounting and Tax Services to Georgia Businesses for Over Thirty Years

http://www.hiscpa.com/irs-representation.html Georgia IRS Representation, Offers in Compromise and Back Taxes

http://www.hiscpa.com/testimonials.htm What Clients of John Dillard, (An Atlanta Christian CPA) Have to Say

http://www.hiscpa.com/tax-services.html Georgia CPA Tax Preparation and Planning Services

http://www.hiscpa.com/what_we_do.htm Atlanta CPA Financial Accounting Services
for Small Business and Individuals

http://www.hiscpa.com/small_business_plans.htmlWriting Georgia Business Plans for Over 30 Years

http://www.hiscpa.com/marketing_plans.html Georgia CPA Helps with Business Marketing Plans

John Dillard is an author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (a Christian CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey.

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

Preparing the S Corporation Income Tax Return K-1 A Guide How to Guide to Prepare a K-1

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Sandy Springs & Tucker as a Faith Based CPA

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

Atlanta CPA on Back Takes: Helping Atlanta Taxpayers Not Lose their IRS Tax Refund

IRS Tax Law has held/ruled for decades that refunds that are for old tax returns, for more than three years after their original due date, are not refundable to taxpayers. Conversely the IRS has ten years to assess and collect taxes for unpaid monies for ten years. Essentially tax law surrounding the “lost” status for refunds has remain unchanged for decades. Frequently I have prepared back taxes for taxpayers who are striving to get their old returns done and become and active, timely and compliant taxpayer.

Though when preparing old back tax returns one would prefer not to have a lot of taxes and attending penalties and interest assessed, it is often disheartening for a taxpayer to file a return that is over three years past due, only to learn that the otherwise refund they would be do, is lost, due to the three year statute of limitations.

Generally a refund claim is considered late if you filed the later of:

-Three years from the return due date of a timely filed and un-extended return.

-Three years from the date the IRS receives a late return or a timely filed, extended return.

It is always prudent to timely file and pay all tax returns as failure to do so can result in failure to file penalties, failure to pay penalties and additional assessed interest to add even of a more financial burden of what otherwise be due and payable. Working with a CPA who is focused on your future and not your past is a wise and judicious path to ensure tax and financial security.

Contact HIS CPA PC (A Christian 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

Atlanta Back Taxes, Atlanta Offer in Compromise, Atlanta Tax Mitigation, Atlanta IRS Representation, Atlanta Tax Levies, Atlanta Tax Liens, Atlanta IRS Asset Seizure, Atlanta Wage Garnishments, Atlanta Filing of Old Tax Returns

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

Managing Payroll Forms
Easily the most administrative burden of owning your own business, payroll is the bane of many who try to go it alone. http://www.hiscpa.com/payroll.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.

IRS

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

Award Winning Atlanta CPA Provides Sample Installment Agreement Request to Georgia

Georgia, like the IRS, allows both corporate and personal/individual taxpayers, who cannot pay their taxes in full, to set up an installment agreement to pay the taxes over time. Though this is a good plan for many, it is often the most expensive as during the time period, when the payments are being made, both penalties and interest continue to accrue adding even more monies to be due and payable that would otherwise be due.

Often paying the taxes and interest in full while asking for penalty abatement or an Offer in Compromise are frequently good options to consider and evaluate when dealing with Tax Representation Issues and Tax Advocacy. Frequently these options are the best when dealing with a wage garnishment, levy, lien, back taxes or the filing of old past due tax returns. Cover Letters should tell a story leading to the taxing authorities leaning toward agreeing with the particular position you have claimed. If there are any substantive other tax for financial issues that would be important it would be prudent to cover them in the Cover Letter. If you were to submit an individual request to Georgia, for example, here is a Sample Installment Agreement Cover Letter you might use.

Georgia Department of Revenue

Installment Payment Unit

Atlanta, GA 30345 

Enclosures: Power of Attorney and GA Form 9465: Installment Payment Plan Application and IRS letter regarding their Federal Offer in Compromise

Dear Sir or Madam,

I am following up on the taxpayers open monies due the state of Georgia and to set up an Installment Agreement thereon. I have also enclosed for your review a copy of the last piece of correspondence regarding their IRS Offer in Compromise. As you can see from the 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 collection efforts while this Installment Agreement is being processed.

I have enclosed GA Form 9465: Installment Payment Plan Application for the above referenced taxpayer listing the most that they would be able to commit to on an monthly basis. 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 submitted.

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

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Sandy Springs & Tucker as a Faith Based CPA

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

Atlanta CPA Provides Sample Cover Letter When Getting Ready to Prepare for an IRS Audit

When getting ready for an IRS audit it is good to start off the relationship with both the client and the IRS to build trust, confidence, availability and goal setting. As none of us in life will be able to do it all by ourselves, finding a CPA who has a proven track record of success in IRS Representation issues whether you are facing a lien, levy, IRS assessment, garnishment or readying to submit an Offer in Compromise is essential To that end and to assist I have provided a sample letter to the IRS that we use to begin an audit for a client with the end in mind.

Internal Revenue Service

401 W. Peachtree Street

Atlanta GA 

Enclosures: Power of Attorney

Dear Sir or Madam, 

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to address their tax issues. I am willing/eager to supply you with any information that you might need in order to process the audit. I am working with the client to get their tax filings correct and payments current ASAP.

It is my goal to help in their efforts to return to compliance. Since I

have assumed the role as their financial advisor (they had no advisor previously). I have consulted with them, and in good faith will need approximately thirty days to pull all of the information together that you have requested. Please ASAP confirm the years under audit as the notices I received indicated different years than what the client has understood, so that we might be pulling together the correct information requested.

Please cease all collection while I work with the client to get all of their tax filings amended and payments current. 

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

To read more about John Dillard CPA and his CPA practice, business consulting and IRS representation visit http://www.hiscpa.com/

www.HisCPA.com  AProudly 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