Accounting News and Notes

Atlanta CPA Gets Back $81,000 refund from IRS for Atlanta Client

John Dillard CPA of His CPA PC just received notice today that the IRS has issued a check to refund one of his Atlanta based clients over $81,000. “Though it took a bit longer than expected,” the client was able to deposit the monies back into their accounts and to gain a refund from the IRS which ultimately resulted in a tax savings to a client of approximately $62,000 in tax savings dollars.

The IRS has long had a process where a company who was an LLC or a C Corporation and who desires to be an S Corporation to make an election to do so. This process is documented and performed by the filing of IRS Form 2553, which is the Election to be a Small Business Corporation. To file for S Corporation status the easy way, this election should be filed within 75 days of incorporation date (if an new company) or within seventy-five days of the tax year to which it relates. S Corporations status allows for the legal avoidance of “double taxation” as C Corporations have to pay taxes first at the corporate level on any retained profits and then again at the shareholder level when monies are paid out to owners in either the form of dividends or salaries. LLC’s continue to be responsible to pay FICA/Medicaid taxes on all of their net earnings out of the business, whereas an S Corporation are only required to pay these FICA/Medicaid taxes on salaries paid out to all employees, including active employee owners. Care should be exercised as tax law requires that all active employee owners take a fair and reasonable salary given position and profit.

If you fail to make the seventy-five day time requirement the IRS has long had a process where one you can formally appeal requesting the S Corporation date you prefer. Care should be taken when performing this procedure and working with a CPA is your best bet to ensure that your S Election request is granted. Talking with the IRS about any substantive tax issue that it is widely recommended that you sign a Power of Attorney, which if Form 2848, to have your CPA talk to the IRS on your behalf, which will dramatically and exponentially ensure a higher success rate than going it alone.

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

You’ve done the hard part…got all your info to the CPA, listened to the barrage of questions that they had about this expense and that, got your return finished, signed off on it and put it in the mail well before the 15th of April…shouldn’t it be time to cash that refund check and take a vacation?  You could if you HAD that refund check, right?  If you are spending your days, waiting patiently/anxiously for that little orange envelope to show up with your tax refund, wait no more.  You can find out the status of your tax refund simply by going to the IRS website by following the link:  https://sa1.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp or simply www.irs.gov and click on the “Where’s my refund?” section.  Regardless of whether you split your refund into several accounts, opted for direct deposit or asked that your check be mailed directly to you, you can track your refund.  To maintain confidentiality, you will be required to provide them with some information before getting your status.  You will need:  your social security number, filing status (married, head of household, etc.), and exact amount of your refund.

If, after 28 days of the IRS mail date, you haven’t received your refund check, you should start a refund trace.  If your address is incorrect, you can change it online but always be sure and check that before you mail your return into the IRS to avoid any delays in getting your refund. 

 DON’T FALL FOR E-MAIL SCAMS ABOUT YOUR REFUND!!!!  The IRS never initiates e-mails about your refund and never give out your social security number!!!  Have a great “refund” vacation!!