How to Avoid an Audit from the IRS

What You Don’t Know & Report Can Hurt You: Avoid Unnecessary Fines & Penalties

Much confusion exists over which records and documentation should be saved and for how long to support a tax return you prepare and file. Generally speaking you should save records so that if ever asked, you will be able to:

Show Income Sources

This may include your W-2, business income, copies of checks received, invoices, interest and dividend statements, social security, alimony, and K-1’s received from business interest. Documentation should be maintained such that all income and its source and type are readily available by reviewing the source document. If not readily ascertainable it would be advantageous to also save substantive collaborating information.

Keeping  Copies of Receipts, Expenses & Itemizations

You will want to be able to prove all items taken on your return if ever asked. For most taxpayers this would include items such as mortgage interest, real estate and personal property taxes paid, medical and dental expenses, casualty losses, moving expenses, state and other taxes, charitable contributions, alimony, employee business expenses, IRA’s, dependent care expenses, tuition, closing statements, invoices, bank statements, student interest, etc.

This is a partial list and only a sampling of the types of items you would want to save. The totality of what you would need to save would be best served by a review of the prepared return, then ensuring that you have copies of all of the deductions claimed and proof of all dependents. Proof of payment should include the payee, amount, transaction date, check, bank statement, etc. Care should be taken to maintain documentation as prescribed by IRS statues for that year’s taxes in all of the above categories and indeed all deductions on your return. A detailed understanding of what substantiates a valid tax deduction is a critical part of this process as documentation standards, based upon type, vary substantially. 

By critiquing a client’s prior tax return a CPA can gain much guidance and information about a particular taxpayer. However there is no substitute for a CPA being keenly aware of all information that they receive from a client. The below is a sample letter that we might send to a client to ensure that all of the information is received to ensure that a timely and correct return is prepared thereby ensuring that only the lowest legal possible tax is paid:

For your 2010 Personal Return I do not yet have: 

Property taxes paid on your personal vehicles. 

Mortgage Interest & the Real Estate Taxes on Your Home. 

Last year you had $4,000 of charitable contributions, so far this year you have forwarded $200. Please review and advise. 

This will confirm your advice that: 

-You have not paid any federal or state estimated payments for 2010. 

-You have not yet retained a payroll service for your company and that I suggest you do so ASAP. 

-That you are a C Corporation for all tax years prior to 12/31/10 and that you are an S Corporation effective 1-1-11.                                                      

This is to confirm that you are handling all payroll and 1099 issues, your county property tax report, sales tax reports, your annual corporate registration, and your business license. 

Please be reminded that you are required to keep a by day log to support business miles and that I suggest you get to me fixed assets by year, item, and amount purchased so that we can prepare a detailed fixed asset list. 

We encourage you to look at adding a retirement plan so that you can both attract & retain employees and to start planning for your retirement. 

Please forward the data ASAP and the signed power of attorney being forwarded so that I can respond to the IRS 3-1-11 request for documentation. I will mail copy as a reminder ASAP. 

“Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

 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/    (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.

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.

United States CPA Advises on IRS Representation Issues

Working with the IRS is not for the faint hearted or ill advised. The Bible teaches us throughout its text that we should seek the wise counsel of others and then to be and get the help of disciples who are willing to help lead us down the right path. Seek good Godly counsel from the best professionals you can find as it will pay many long term dividends.  Having Served in the United States as a CPA for decades I have learned again and again that seeking wise counsel is the beginning to wisdom. Therefore working with a CPA who is well versed in IRS Representation issues is your best option in dealing with the IRS towards successful IRS negotiation. The below is a sample letter a CPA/Tax Attorney might use to send to the IRS to begin to address open IRS tax issues. Though many issues on the surface may appear simple, their successful resolution is very rarely, if ever, a quick and easy process.

Department of the Treasury, Internal Revenue Service, Atlanta GA 39901-0010 

Enclosures: Power of Attorney, IRS notices dated 7-1-10 & 8-1-10 regarding the 2008 & 2009 tax years. 

Dear Sir or Madam, 

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament with the IRS, get their returns filed, and to address their tax issues.  I am willing/eager to supply you with any information that you might need in order to process their file.  

Since I have assumed the role as their financial advisor, I have consulted with them, and in good faith have pulled together the information that you need to file and amend their returns to the correct balances owed.  

Per our records we show that: 

-Their tax return for 2008 was amended in March, 2010 changing the amount due the IRS to $1000.

-Their tax return for 2009 was filed in April, 2010 showing the amount due the IRS of $1,500. 

The above/enclosed tax notices reflect an amount due of $12,000 whereas the above returns reflect an amount due of $2,500. Please correct your records accordingly, while being sure to not that the taxpayers issued on 8-11-10 a check to pay the $2,500 balance in full. 

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 

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.

A Christian CPA Firm: Never Underestimate the Long Term Benefits 

 John Dillard, CPA of His CPA, PC (An Atlanta  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/

Atlanta CPA Advises on Keeping Your Tax Bill as Low as Legally Possible  

Hello John, I hope you are well. I got your message about. I just need to figure out my estimated taxes. Also I am trying to mail out my returns. I have a copy, and another that says Georgia form 500. I cannot find another to send to Federal that does not say Copy. Do I need to make a copy and sign the one that says copy and send that one in? Please let me know. Thanks. 

Below is my response: 

I mailed a copy for you to file with the IRS. 

If you cannot now locate it please just make a copy and file. 

IRS tax law requires estimated payments based upon your current net profit from your business. 

Please do a recap of your proprietorship results from the beginning of the year and send it to me along with an estimate of what you expect your current year corporate profit to be and I will be happy to advise accordingly.

Duluth GA CPA: Be Sure that you Gwinnett County Business Pays Its Lowest Legal Possible Property Taxes on its Personal Property

Understanding the Freeport Exemption: Gwinnett County voters elected to exempt the following classes of commercial and industrial inventory:

• Class 1 – Raw materials &  goods in process of manufacture – 100% exemption

• Class 2 – Finished goods produced in Georgia within last 12 months – 100% exemption

• Class 3 – Finished goods kept/stored in Georgia within the last 12 months and destined for shipment out-of-state – 100% exemption

The Cities of Buford, Duluth, Grayson, Sugar Hill, and Suwanee have also elected to exempt 100% of all qualified inventory.

The deadline for filing an application for Freeport Exemption with the Board of Tax Assessors is March 1 to receive the full exemption. Click the link below for more information on homestead exemptions: http://www.etax.dor.ga.gov/ptd/adm/taxguide/exempt/homestead.aspx

Please review the categories above and confirm what type of inventory/assets your company has  relative to the three Classes Above. It was my understanding that when the property tax report was filed that you did the Freeport Exemption was not applicable. Please review advise. Below is a link to the Gwinnett County website where you can learn more about the Exemption:

http://www.gwinnettcounty.com/portal/gwinnett/Departments/FinancialServices/TaxAssessorsOffice/PersonalPropertyAppraisal/Exemptions Please be reminded that the Freeport Exemption has to be applied for by using the “Application For Freeport Exemption on Inventory” form  (Georgia Department of Revenue Form PT-50PF) which can be also obtained at https://etax.dor.ga.gov/ptd/adm/forms/pt50pf/index.aspx  

As rules vary from City, to County to State please be sure to read and correctly apply the law where your business is located. 

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 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 on IRS Representation 101 

Find a CPA Who is Willing to Work to Ensure Your Best Interests Are Achieved

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 than ever for business owners to find a CPA who will help them stay ahead of the power curve in addressing your business issues, trends, and tax planning. Find a CPA firm that lives out the “Golden Rule” in serving others and the community. A CPA Firm should be willing to meet with your for an initial free consultation. By offering this information gratis, you and the CPA can 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. The below is a sample letter we might send to the IRS to address open tax issues with the IRS:

Internal Revenue Service

Atlanta GA 39901 

Enclosures: Personal Power of Attorney, Amended 2009 Amended Personal Return, Affidavit and Supporting Documentation Acknowledging Independent Contractor Income was Done and Recorded as Income on the Corporate Income Tax Return  

Dear Sir/Madam,      

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 am writing to appeal the findings as detailed in the above mentioned letters and to request abatement for the Civil Penalty for the 2010 Tax Year. 

1. My name is John C. Dillard CPA of His CPA, PC and I have a power of attorney to represent the above client. My address is 1940 Woods River Lane, Duluth GA 30097 and phone is 770 814 9304.

2. My clients SS #’s are listed above.

3. I want to appeal the original findings as the original assessment was incorrect and a signed amended return to reflect what is actually owed is attached. Please accept this return is filed.

4 & 5. The facts supporting our position are as follows: 

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.  

Please note that the original assessment assigned taxable income to them for Independent Contractor income that was for business done in the corporate name and deposited into the corporate account. Accordingly this income should not be taxed on their personal return. I have attached an affidavit and corresponding information/details prepared by the taxpayer to this effect. I forwarded on 8-1-10 a letter (copy attached) to the IRS and the Social Security Administration to ask them to correct their records for  the 2009 tax year for which I have forwarded copies of the correct W-2’s and W-3.  

I believe it is a just and fair request to abate all of the previously assessed penalties. The taxpayers had no financial adviser in the past and they have retained me to assist them in this endeavor. At your earliest opportunity please call and confirm that the collection efforts have been stopped. I believe the IRS is a just and fair institution whose goal is to assist those who are now attempting to comply with all of their current tax liabilities and has now a proven track record of doing so. Under penalties of perjury, I declare that the facts presented in my written protest, which are set out in the accompanying statement of facts, schedules and other statements are, to the best of my knowledge and belief, true, correct and complete. 

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

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 God 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 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.

Duluth/Lawrenceville/Gwinnett/Atlanta CPA on Utilizing Your Bookkeeping, Financial and Tax Return to Gain Key Management Information 

Keep Your Tax Bill As Low as Legally Possible: Only You Can Prevent Undue Tax Burdens

As each business owner/entrepreneurs situation varies dramatically, great care should be afforded in closely held business to ensure that taxes have been appropriately considered for all. When there is more than one partner, it may be wise to consider assisting in making shareholder/member distributions at the highest partners marginal tax rate to ensure that everyone gets at least enough to cover their respective tax obligation. Each of these entities will issue a K-1 to each individual shareholder to reflect their corresponding share of entity profits.

Understanding the Tax Advantages of Being an S Corporation

Although S Corporations have to issue K-1’s and make distributions based upon stock ownership percentages, partnerships, LLC’s, and LLP’s are allowed by law to issue K-1’s and member distributions based on any method that all owners agree upon. This is a distinct advantage partnerships, LLC’s and LLP’s have as agreeing members have the ability to do what they will with the profits whereas S corporations are required to issue distributions and K-1’s based upon each shareholder’s ownership percentage. Your CPA should be your primary financial adviser offering you insight and guidance, even when not initially sought for it is your CPA who is best able to offer information and suggestions to ensure that your business not only survives but thrives. The below is a sample letter we might use to guide a taxpayer with financial insight, while serving as their CPA and Virtual Chief Financial Officer:

Regarding Your 2009 Corporate Returns 

Your 2009 cost of goods sold (cost of doing business) is 90% leaving only 10% to cover salaries and other expenses creating a book loss of $25,000. I suggest ASAP that we review our pricing guidelines and adjust so that margins are at least 20%. This would allow for your operating expenses to approximately remain the same and break-even. To ensure profitability, given present expense levels, I would suggest increasing your gross margin to 25% ASAP. 

Tax law does not allow S Corporation owners to deduct tax losses except to the extent of your tax basis (which is calculated predominantly by a review of retained earnings and current loans made to the company). Therefore this year’s tax loss of $25,000 will be rolled forward to future years when you might have tax basis. 

Tax law requires all S Corporation owners to take a fair and reasonable salary given position and profit. The paying of  excessive salaries, when you have a business/tax loss, has resulted in you paying approximately $14,000 of FICA/Medicaid taxes that would otherwise not be due and payable and $10,000 of 2009 Income Taxes on your 2009 Personal Return that otherwise would not have been due, as your W-2 was taxable, while your losses are suspended as your did not have any tax basis in order to deduct them. 

John 15:13 Greater love has no one than this, that he lay down his life for his friends. 

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. 

Duluth/Alpharetta/Roswell/Atlanta CPA Guides Taxpayer in Fixing Prior Tax Mistakes 

What You Don’t Know Can Hurt You: Avoid Unnecessary Financial Setbacks 

How to Avoid the Top Five Tax Mistakes  

God challenges all to do all we do as if doing it for the very glory of God. I believe that this relates to our church, home and work life alike. Though none of us will ever be perfect, work, for many of us, is an environment that has fairly consistent and predictable results. Accordingly, it is one area of our lives especially that Believers are afforded an opportunity for excellence at all levels. Though clearly there will be environments and situations where we will not be able to predict or even influence the intended outcome, we should always strive to do our very best. 

Mark 12:33 To love him [Jesus] with all your heart, with all your understanding and with all your strength, and to love your neighbor as yourself is more important than all burnt offerings and sacrifices.” 

It is widely recommended that all Atlanta Business Owners and Entrepreneurs should use the services of a Certified Public Accountant. For it is when I most often see miscues, and missteps are when the services of a well qualified CPA are not utilized. Some of the most frequently repeated errors that we review and correct include the below. Just as we are reminded in the Bible that “plans fail for the lack of [good] counsel, so are business owners called to be good stewards of their business, employees and their clients. 

Top 5 Tax Mistakes  

1. Choosing the wrong entity. Before you dash off to either incorporate yourself or to the attorney’s office, be sure to stop by and see your CPA first, because “what you don’t know may cost you.”  As tax and legal business entities are typically available in a wide variety of circumstances choosing the right one will do much to ensure you both limit your tax bill as much as legally possible and to chose a legal entity type that is best suited for your business and both its operational and legal liability limitation issues. 
2. Recording of Depreciation. Tax law generally allows taxpayers to chose from a wide variety of tax methods. Choosing one that is both within the confines of tax law and to maximize you legally allowed deductions. Tax law allows on business tax returns for fixed assets, subject to prescribed limitations and your company’s profit, to write off the amount in full in the year of purchase. 
3. Poor Bookkeeping. Over the decades of experience as an Atlanta CPA, I have seen business after business fail as a result of the owner not seeking to consistently maintain current and adequate books and records that correctly depict the company’s operating results. Just as a ship at sea without a GPS and a rudder is doomed to disaster, so is a business that fails to keep their bookkeeping current and to make wise and judicious business decisions to correct and negative trends and to gain financial insight to making management decisions. 
4. IRS Audits. The adage I am most reminded of is “that the person who chooses to represent himself has a fool for a client.”  Frequently we are called in “after the war is fought so that we can help bayonet the wounded.” I will never forget the pearls of wisdom I heard some years back from a client who said “it is very difficult to do one thing well.” In our world of specialization and the  many myriads of tax law and their interpretation, hiring a CPA is your best first choice in addressing IRS Representation Issues. Back Taxes, Tax Advocacy and an Offer in Compromise. 
5. Going It Alone. There is no perhaps any greater exposure in life than we chose to go it alone. Just as we are all part of the Body of Christ and each part as a different function, so are we to seek out others who have strengths where we ourselves are weakest. Rather than seeing this a failing, you are most strong, prudent and wise when you are most able to seek guidance and wisdom thereby multiplying your strengths and abilities. 

CHARLES COTTON: “WE OWE ALMOST ALL OF OUR KNOWLEDGE NOT TO THOSE WHO HAVE AGREED BUT TO THOSE WHO HAVE DIFFERED.”

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 God 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 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

Gwinnett GA, Duluth/Alpharetta/Atlanta CPA: Understanding Your Options in Addressing open IRS Monies/Back Taxes 

Understanding your options is your best option when evaluating how best to address open and unpaid IRS tax issues with the IRS. These articles and recaps will do much to help ensure that you make a wise a prudent choice. Having served as a CPA in Duluth, GA for over a decade I have learned that the best option will always be to retain a CPA who is well versed in such matters and to ensure that you check all of their references. 

Paying the taxes and interest in full along with the interest while requesting abatement of the penalties. This has the advantage of stopping penalties and interest on any paid monies and the potential upside of perhaps a quicker resolution of the open monies. However this requires you to be able to source and full pay the taxes and interest, which may be require more capital than appears immediately available. However borrowing this money from a bank, friends or family might gain you a much lower carrying cost on the open monies and therefore be substantially financially advantageous. 

Submitting an Offer in Compromise is a great option for those who qualify. In general terms to qualify you have to be up to date on all of your current tax filings and obligations and the amount you owe Will need to be more than the total of your net worth and excess cash flow over the next five years. If the IRS accepts your offer in compromise, you will be required to stay current on all personal and corporate tax obligations for the next five years. A typical Offer in Compromise will take between eight to fourteen months to process and you must meet the above criteria or the IRS will not consider your offer. For those who qualify the IRS will reduce the amount owed to what you can afford to pay, using the above, and then typically the IRS will look to have all of the monies paid ASAP after acceptance of the offer. Though the IRS can grant payment terms for up to two years on the monies, I recommend that all taxpayers pay in full, so as to limit any potential of non-payment and voiding of the Offer. 

The third option that is most used to effectively address open IRS tax monies/back taxes is to set up an Installment Plan using IRS Form 9465. The Installment Plan, though often seen as a “quick fix” as taxpayers are able to get on a plan and begin making monthly payments, is frequently the most expensive option as penalties and interest continue to be assessed due and payable on any open monies. 

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.

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

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.

Duluth GA/Alpharetta/Atlanta CPA on Finding the Right Atlanta CPA for Your Back Taxes & IRS Representation Issues

Just as different businesses serve different products, markets, and niches, so are the individual personalities of key management.  Key management personnel meshing with their CPA is of critical importance. As with all walks of life we need to associate with people and personalities who both make us a better person and those who make us feel better about ourselves. Finding a CPA who is intuitive, insightful, giving, and is a good communicator are all essential personality traits in finding a CPA who can not only provide good advice but is also adapt at its dissemination.

What to Expect in an Initial Meeting with a CPA

Initial meetings with a CPA you are hiring should not only be a time for you to interview the proposed professional but also for you to check on his past accomplishments, overall demeanor, core competency, and overall game plan for addressing your CPA needs. A CPA who has a core program is most apt to be more about serving their needs than that of your own. A good professional should be able to easily adapt to your needs and the changes in those needs while also being sensitive to your own core competencies. The below is a sample letter one might use to send to the IRS to help develop a case or penalty abatement. Care should always be taken to be sure that you find a CPA who has a history and years/decades of experience in addressing IRS tax issues:

Internal Revenue Service, Atlanta GA 

Dear Sir/Madam, 

I am writing to appeal the findings as detailed in your last correspondence. 

My name is John C. Dillard CPA of His CPA, PC and I have a power of attorney to represent the above clients. My address is 1940 Woods River Lane, Duluth GA 30097.  I want to appeal the original findings as I believe the penalties for all tax years are identical and should be abated for all years, as they have previously been abated for 2006. The facts supporting our position are as follows: 

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to address their assessed penalties. As you can see the by the enclosed letter dated 5-1-10 to the IRS the taxpayer has full paid all of their taxes and interest in full. 

Please suspend all collection efforts as I have previously forwarded on 3-28-10 all of the unfiled tax returns for the 2007 to 2008 tax years and have enclosed a check to pay the total tax and interest will requesting that the IRS abate the penalties. I had previously forwarded a check for $2000 to pay the taxes and interest in full. Please apply on the IRS records the above garnishments to the taxpayers original tax liabilities for the outstanding years. Then apply the check enclosed first to the original tax liability and then to the accrued interest assessed as determined above. After you have applied the monies as per the above, this would make the account reflect no original taxes nor interest due. 

I am asking you to abate all of the assessed penalties as the taxpayer has faithfully responded by meeting the due date we agreed to of filing the returns. Accordingly by nature of their response and the enclosed check for the difference I believe it is a just and fair request to abate all of the previously assessed penalties.  Also the taxpayer has since filed and full paid their 2009 income taxes as a measure and respect of their good faith as a compliant taxpayer. Also we previously returned checks and voiding them that were inadvertently paid by the IRS out to the taxpayers in error.  

The taxpayers had no financial adviser in the past and they have retained me to assist them in this endeavor. At your earliest opportunity please call and confirm that the collection efforts have been stopped. They taxpayers are now complying with all of their current tax liabilities and has now a proven track record of doing so. Copies of our original requests and letters sent to us by the IRS regarding this issue are all enclosed.

Under penalties of perjury, I declare that the facts presented in my written protest, which are set out in the accompanying statement of facts, schedules and other statements are, to the best of my knowledge and belief, true, correct and complete. Please do not hesitate to contact me if you have any questions. 

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

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 God 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 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.