Accounting News and Notes

Duluth/Alpharetta/Atlanta CPA on Avoiding Mistakes and Audits When Preparing Your Personal Returns 

Avoidance of these common mistakes will greatly assist you in the proper preparation of your tax return, will help you avoid unnecessary IRS tax penalties and interest, and help you keep your tax bill as low as legally possible. Lift up the veil and discover how long and what types of records you should retain and for how long are often the point of consternation for many taxpayers. Learn what you need to keep so that you are never unduly surprised if ever asked to reproduce documents.  Below is a sample letter we might send a client to ensure that both a proper return is prepared and only the Lowest Legal Possible Tax is Paid.

In getting started on your personal returns please forward complete the attached rental schedule to show your revenue and expenses on your rental property. Also for the rental please get to me the original purchase price and the date converted to rental property. 

I did not see the property taxes on cars. 

I did not see any interest income, dividends or capital gains. 

When you give me the itemization of property contributions to charities I need for you to break it down between the donors (Salvation Army and Goodwill) and I need the total, by donor, of the original purchase price of the items donated. Please be sure to value the items donated at what you would sell them for at a flea market/thrift store value and that the items are in good and useable condition. 

Based upon the data your forwarded me your federal tax bill should be approx. $12K vs. the $13K withheld and should generate a refund of approx. $1K. 

The charitable contributions you forwarded was listed on the statement as having been given by your company. Please review/advise. In the future I suggest all personal/charitable giving be done by your personally. 

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 

Romans 12:4 Just as each of us has one body with many members, and these members do not all have the same function. 

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 CPA Advises on Ensuring You Have Adequate Documentation to Support Your Charitable Gift Giving 

When addressing IRS representation issues and other tax matters during the performance of an audit, it is prudent to follow the lead of your CPA. Being aware of tax law and providing documentation that is accordance with IRS tax law is essential to the successful process and completion of an audit. Below is a sample of an inquiry we might receive in the performance and handling of IRS Representation issues: 

Attached is the page from IRS report that explain they could not verify ABC Charity as a qualified charitable organization/501(c); therefore they disallowed the cash contributions we made to them. Here are the IRS documents from both organizations that make them qualified organization. We include the year end statement from these disallowed in the packages that we have sent to you in the IRS copy and your copy. Please let us know if you need us to send it again.  

Below is my response: 

I have received and reviewed the attached in detail. Though it is possible the IRS might allow cash contributions tax law does not require that they do so. 

Please get to me the total cash paid to each and if at all possible a statement from each organization confirming the amount paid so that I might approach the IRS with as much detail as possible. 

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

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

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.

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

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how His CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

Serving 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, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond

Helping Clients with Corporate & Personal Income Taxes, Incorporation Advice, Tax Planning, Virtual CFO, Financing, Business Plans, Back Taxes, Offer in Compromise, Tax Advocacy, Business Acquisitions & Sales, Business Plans, and IRS Representation.

Atlanta CPA on Five Top Tax Tips to Ensure a Successful IRS/Tax Experience

Ensuring Successful Deal With the Internal Revenue Service

Many taxpayers fail, not because of their good intentions, but for a lack of understanding of how the U.S. tax systems/IRS works and how best to utilize the process to your advantage. Just as you would not go into a civil trail without an attorney, so would you not go it alone, when dealing with sensitive tax issues with the IRS. Though certainly, I believe the IRS has good intentions and is sensitive to the needs and right of taxpayers, “going it alone” and without representation is a recipe for disaster.

First and foremost understanding the role and position of IRS personnel is essential. Understanding that the IRS’s first and predominant goal is the successful collection of taxes due if a key first step in understanding the process and working to ensure that your best financial and tax interests are not their predominant watchword. This having a CPA/tax advocate who is both familiar with tax law, collection procedures and your particular situation are critical. Frequently, I have seen situations where the IRS will look to collect income tax monies that are due, without consideration, to legal tax laws and elections that might dramatically affect your income tax bill. Thus having an advocate, who is familiar with tax law, and its proceedings, is your beast step towards ensuring that you are both legally and financially protected.

Taxpayers who choose to go it alone, without wise and judicious counsel, are a recipe for financial disaster as most certainly your best financial interests will not be considered without the just and legal consult of a CPA/Certified Public Accountant as your CPA. Having served as a CPA in Metro Atlanta and beyond for almost thirty years our files are full to examples of successful negotiations with the IRS. All of the tenants below were essential components of that experience.

Five Top Tax Tips to Ensure a Successful IRS/Tax Experience

-Power of Attorney: Assigning the responsibility over to a well-qualified power of attorney to a Certified Public Accountant. You will want to find a CPA who is well versed in handling sensitive tax issues such as an IRS audit, back taxes, substantive unpaid and/or un-filed tax returns, Offer in Compromise, tax elections, liens, and levies. Signing a Power of Attorney/IRS Form 2848 giving your CPA the power and ability to act on your behalf, is the first step in this process. However, it is always prudent to never issue checks payable to your CPA for taxes owed. Instead these monies should be made payable to the IRS and then forwarded to the CPA for inclusion with required tax correspondence.

-Have Good Documentation: Tax Law has long commanded that taxpayers keep documentation for business receipts, expenditures and itemized expenses. Essentially your documentation should tell a story proving the expenditures and recorded itemizations so that an independent reviewer would be able to quickly ascertain the correctness and validity of items recorded. Good documentation not only makes your CPA’s job easier but also allows for the quick and successful conclusion of an IRS audit.  Frequently it is often prudent to “pre-explain” any unusual item when filing a return by attaching to the return perhaps both an explanation of an item and the corresponding receipt  to determine validity and correctness.

-Follow the Leader: Frequently, when left to our own devise we are apt to make decisions and to choose a direction that is not in our best interest. Thus, when you retain a CPA following their lead is your best chance for success. To this end the best initial advice is not listen to those who are not well versed in tax matters. Thus, listening to anyone who is not a CPA is not only disorientating but also a recipe for disaster. Debating unduly with a well-versed and experienced CPA is akin to arguing with your physician after he has made a diagnosis based upon a series of tests. Following the lead of your CPA is your best defense to ensuring that your IRS experience is as pleasant as possible. Unduly requiring your CPA to re-advise, instruct and debate a sensitive tax issue will result in both higher tax representation fees and undue delay in resolving your tax representation issues.

-Stay the Course: Just as the difference often in a boxing match is the sheer will of a participant to stand tall in the face of unyielding adversity, taking punch after punch, but continues to fight the good fight. When addressing sensitive tax issues, handling IRS audits, back taxes, tax liens or levies or an Offer in Compromise it is essential to know when to say when. Often success is just beyond our reach and it is for only those who continue to seek after the goal when all appears helpless. Giving up at a critical juncture wastes all the time and fees beforehand and ensures that even more fines and penalties will be assessed and that the IRS collection efforts resumed and heightened.

-Being Proactive: An ounce of medicine is worth a pound of cure. Nowhere is this more true that in addressing your tax issues before they become problematic. Having a  working knowledge of tax law, hiring a payroll service and following the lead of your CPA is essential to sound financial and tax management. Tax law since the 1940’s has required taxpayers to pay their taxes as they go to avoid assessment of penalties and interest. Making sure that your payroll withholdings are sufficient if you are a C or an S Corporation, that your estimated tax payments if you are an LLC, LLP, Partnership or Proprietorship is essential to avoiding extra fees and penalties. Also a periodic review of your entity choice, your retirement plan choices and your accounting procedures is a key ingredient to ensuring that your company elections, processes and procedures are both up to date and maximized for both tax and operational efficiency.

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

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

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31

Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

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 Acquisition/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Christian CPA Teaches How to Prepare for & Survive an IRS Audit

CPA Serving Atlanta GA & Beyond

As we watch gifted athletes do what appear to be miraculous things on the field of play, we often fail to keep in mind the endless hours of preparation, practicing the basics and coordination that went into playing and excelling at such a level. For just as “failing to prepare, is preparing to fail” so it is with all walks of life. Most IRS audits, though they feel extremely personal, are predominantly a pure random selection. It is solely a matter of your number coming up. In any given year, a taxpayer, whether business or personal, has approximately a one to two percent chance of being selected and audited. If and when your number is called for an audit and you receive that tax notice in the mail, it is time to prepare and to prepare well. These steps will guide you to audit success with the goal of no adjustments always being the final result:

Retaining a CPA as Power of Attorney

“Even now my witness is in heaven; my advocate is on high.” Job 16:19  Just as Believers we have an advocate in Heaven who will go before us representing our heart, intentions and actions so should be wise stewards and surround ourselves with wise counsel. Hiring a CPA who can be a tax advocate is your best first step in the process. Having someone who is familiar with the audit process, tax law and collection issues is imperative to ensuring that your best interests are always represented. Having a wise understanding of the needs and skill a good CPA will provide will enable you to make a sound and judicious  business and tax decisions. “Plans fail for lack of counsel, but with many advisers they succeed.”  Proverbs 15:22 

Prepare, Prepare, Prepare

In the New International Version (NIV) of the Bible the issue of preparation is detailed one hundred seventy six times making it clear that planning is a key tenant in both success and order. The basic first step in preparation is to consistently do the right thing over and over regardless of the circumstances. Keeping good records, documentation and copies of required receipts is something that should never go out of style. Each and every tax year’s data should be well-organized so that you are ever ready and if called to task for any task item required, you will be well armed and able to address and answer any tax questions. Saving copies of tax records, board of directors and shareholder’s minutes, annual registrations and income tax returns is critical to ensure that you will have all the necessary paperwork and documentation that would be needed, in the event of an audit. Automobile expenses are frequently the bane of many in addressing audit questions and their positive resolution; having a by day mileage log to support all of your business miles will help detail and support this deduction. Being aware of what documentation is required for proper tax documentation and recordkeeping to validate tax deductions, will be an invaluable asset to being ever ready, if called to task, to prove or validate a deduction. In order to best understand what is a valid tax deduction and the recordkeeping required visit the below fine articles.

 Finding (and Tracking) Business Tax Deductions               http://www.hiscpa.com/maximizing-deductions.html
Whether you are a new business owner or have owned your company for years, missed business deductions are a consistent cause of concern. Find new ways and methods to improve your business tracking skills.

Business Expense Documentation              http://www.hiscpa.com/business-expenses.html
Business expenses and their adequate documentation is key to running a successful business.  Learning the ins and outs of what is required will both raise the efficiency of how you run your business and ensure that you always have proper documentation in the event of an audit.

Handling Automobile Expenses             http://www.hiscpa.com/autos.html
Vehicle expenses are perhaps the most discussed while still being the least understood of all the tax code sections. Discover how this section of tax law can be made simple so that all might understand.

Tax Expediency and Responsiveness

When that tax notice first arrives there is a tendency to put it aside and to deal with it when we have to by waiting for the last possible moment, rather than addressing it expeditiously as we ought. Setting the notice aside is a sure fire way to ensure your audit experience is going to be worse than it needs to be. Initially retaining a CPA to address all of your audit issues is your best first line of action naming your CPA as your sole and exclusive representative to talk to the IRS field agent on each and every audit issue. Accordingly it is usually best not to have the business owner or taxpayer involved in the actual performance of the audit itself, leaving all of the interaction on all of the tax and documentation issues to the CPA. Having all of the requested information well-organized and ready for the tax examination as well as thoroughly explained in writing an integral component of audit success.

In our world of technology and specialization, understanding the general nuances of how an audit works will do much to make an unexpected audit go smoothly. Having an advocate, understanding documentation requirements and being prepared will ensure a far better audit result. Keeping in mind the goal of having the IRS accept all filed returns to be correct as filed, that there are adjustments to be made, and most of all that there are no additional monies due will help keep ensure that both the audit itself and its result are maximized to your best advantage.

Written by author John Dillard CPA of His CPA at 770 814 9304 and visit http://www.hiscpa.com/ (a Christian CPA firm). At His CPA we march to the beat of a higher drummer where we put the “Golden Rule” to work each and every day by “Serving Him by Serving You…One Tax Return at a Time.”

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, Payroll Administration, Bookkeeping.

We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, 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 and Decatur, 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

Christian CPA How to Survive and IRS Audit

CPA Serving Atlanta GA & Beyond

Let’s face it when the IRS notice first arrives we all have the same initial reactions. Ouch! Yuk! Why me? There is good news out there but only if you know how the process works and understand its attendant nuances. The largest majority of all audits for truthful taxpayers is pure random selection. It is not based upon whether you file your return early or late, whether you file an extension or not, or even if you electronically file or by paper copy. Most all audits in these circumstances is pure random chance. Just as when playing bingo, cards or hitting the lottery, your odds are being audited are generally the same as everyone else, fairly small. Although the notice feels personal, more often than not it is just your turn (i.e., your number comes up). If you go to http://www.wwwebtax.com/audits/audit_avoiding.htm you can see your likelihood of being selected for an audit by the IRS. To gain a feel of the IRS Fiscal Year 2007 Enforcement and Services Results see http://www.irs.gov/newsroom/article/0,,id=177701,00.html

It is not recommended that a taxpayer should ever go it alone to represent themselves in the handling and coordination of an IRS audit or one from the state. Lacking an insight of the law, its nuances and technical challenges most taxpayers will do much worse and not better their case should they chose to go it alone. If you are aware when you file a return of a potential issue, such as a particularly large donation to your church, it is wise to “pre-answer” any potential questions, for example, by attaching to the return a copy of the charitable deduction receipt. Striving to take the emotional aspects out of an IRS audit and to replace them with time proven representation techniques needs to be the primary driving motivator to ensure that your tax situation soon improves. To learn more about what you can do to help ensure you do not fail to achieve your best audit result visit: 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.

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.<

Written by John Dillard CPA of His CPA at 770 814 9304 and visit www.hiscpa.com (a Atlanta Christian CPA firm). At His CPA we march to the beat of a higher drummer where we put the “Golden Rule” to work each and every day by “Serving Him by Serving You…One Tax Return at a Time.”

We advise clients on: IRS representation, Offer in Compromise, Incorporation in GA, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.

We serve clients that are located in Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, 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 and Decatur, 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