Accounting News and Notes

Christian CPA:  Understanding & Applying Tax Law to Properly File Your Income Tax Returns 

As Believers we are called to do our very best in all that we do. I believe that this applies to our responsibilities in our families, work, church and friendships. I have found that when dealing with tough and complex issues that often the fewer words the better. However I have also found there is no substitute to a consistent message and by the written word. Just as God gave us His written word, the Bible, to live by, so should we seek to help and guide others with written correspondence when and where appropriate. For whether you are dealing with sensitive IRS Representation Issues, Back Taxes, an Offer in Compromise, Incorporating Your Business, Serving as a Virtual Chief Financial Officer, there is no substitute for clean concise written words. The below is an example of correspondence we might send a tax client to ensure all substantive details and issues are well coordinated and addressed: 

Enclosed please find your 2010 Corporate & Personal Income Tax Returns, IRS S Election requesting effective date of 1/1/10 and your  payroll reports.  

This is to confirm that: 

You call me so we can go over the enclosed paperwork. 

You file your S Corporation election ASAP. 

You file your S Corporation return ASAP. 

You wait to file your personal return until we can file all of your un-filed personal tax returns ASAP. We need to get all of them done ASAP as final date to file 2010 returns is 10/15/11. 

Please be sure to attach copy of your personal return extension to your return prior to filing. 

I suggest you retain a payroll service ASAP for your company. 

I suggest you have at least as much federal and state taxes paid in via payroll withholding by year end, using your 2010 personal return as a guide. 

Please have the payroll service ASAP file to get your company a GA withholding number and to register with the GA Department of Labor.

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.

Christian CPA: Get Simple Answers to Complex Tax Questions 

At His CPA PC, we are committed to upholding the law of the land and God’s law. As such we look to provide plain talk that clients can understand that looks to use tax law to the full extent possible to ensure that you pay only your lowest legal possible tax. The below is an example of an inquiry we might receive off of our web site: 

I was “googling” a Christian CPA to answer some questions and I found a link to your website.. I see that you provide services to clients in my area so maybe you can help me.

Although I have always filed my own taxes. I really do not understand taxes or tax laws and am not sure if what I am considering is even feasible. However, if it is, I would like some direction on how to get 501c3 status and I would like to know what I will need to save and such to make the upcoming months on myself or a CPA. Any advise you provide is appreciated!!  God bless! 

Below is my response: 

Thanks for visiting www.HisCPA.com  There are many reasons a taxpayer may look to incorporate their business ranging from legitimacy, liability limitation and tax mitigation. Understanding these many nuances is your best first step in ensuring that you chose an entity type is best achieving success given your business model and operations. Entity selection is determinant on many issues ranging from citizenship, number of shareholders, ease of operation, tax obligations and year-end filings and even who your shareholders will be. Though many of these issues will conflict, working with a professional who is well versed in these issues will help you make the best election available for your new Georgia Business.

The Advantages and Disadvantages of Incorporating as a Subchapter S Corporation, C Corporation, Limited Liability Company or Partnership

When looking at what type of entity your business should be, we strive to balance the legal protection issues vs. the tax savings. Over the years, we have developed the mindset that there is no perfect election but there are ones that are better than others.

The information below and the assumptions we make are based upon the fact that my clients tell me that they want to pay as few tax dollars as legally possible. Below are some very specific rules, as well as some generalities. If you are considering incorporating in Georgia, we suggest that you sit down with a tax professional to see how these guidelines relate to you.

About S Corporations

Subchapter S Corporations can have no more than one hundred shareholders and they all need to be U.S. citizens or resident aliens. This corporation type almost always has to have a calendar year as the fiscal year. S Corporation rules have been around since the 1950s and were set up to simplify the rules and regulations of being a business owner.

Liability Protection and Subchapter S Corporations

A subchapter S Corporation, like a C Corporation, affords the business owner personal liability protection from business risks. Some of the keys to maximizing that protection are to treat the corporation like one by doing all your business in the corporate name, signing all of your documents listing your corporate title, not co-mingling any personal issues/bills in the corporation, and by having your annual Board of Directors and Annual Shareholder Minutes Meeting. 

If you are looking to raise most of your revenue from sales then I would suggest you being an S Corporation. I will send you some information under a separate e-mail. When you have reviewed it please give me a call and I will be happy to discuss.

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.

Atlanta Christian CPA Provides Tax Checklist to Pull Your Personal & Corporate Tax Information Together

Preparing Tax Returns for Atlanta Taxpayer for Decades

The first step of being sure you pay your lowest legal possible tax is being sure  you have the base building blocks in line. Therefore it is essential that you do not miss any legal deductions and to report all of your income. Having your prior filed return readily available and a checklist will do much to ensure that you pay only the legal tax that you owe. The below checklist is one that you will want to refer back to again and again.

To complete your monthly financials, please forward:

• Your year to date Balance sheet, Profit & loss
• Year end Bank Statements and Bank reconciliations
• A schedule reconciling your bank deposits (recapping items that are not transfers) to the revenue as detailed on the Standard Profit and Loss for the month.
• Year to Date Payroll Records by Employee
• Notes Receivable and Payable Balances Reconciled
• Copies of new Notes
• Detailed general ledger and Journal Entries for the Month

• You advise of any fixed assets that have been acquired or disposed of during the period.
• That ALL of the balance sheet and profit and loss accounts are correct.
• That you have only one retained earnings account and that the retained earnings account on your internal books equals or is reconcilable to the retained earnings to the last corporate tax return filed.
• That as of January 1st of the prior year that you closed the shareholder distributions account to retained earnings.  

Please be sure to keep by month a hard copy of in your office, under lock and key:

• A detailed general ledger for the month.
• A list of all journal entries posted for the month.
• A copy of all bank statements and reconciliations.
• The standard balance sheet and profit and loss for the month. 

Please be sure each month that you are ensuring that the daily backups on all of the corporate data are being made and taken off site (to another physical location) daily. 

This is to confirm that you are aware are handling all of your payroll and independent contractor/1099 needs, of the need to have a business license, to pay the annual registration fee, to have your annual Board of Directors and Shareholders Meeting, and to file the county property tax report (please be sure to claim the Freeport Exemption on your inventory if you qualify as this can substantially reduce the amount owed).  Please note that if you have not yet set up a retirement plan or have a formal financial plan, that  I suggest that we sit down together soon to get the right plans in place to help ensure your long-term financial success!

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 Understanding/Utilizing the Earned Income Credit to Lower Your Personal Income Tax 

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

The earned income credit (EIC) is a tax credit for those who work and have earned income/Adjusted Gross Income (AGI)  less than $48,279. Tax Credits usually means less tax owed/more money in your pocket. It mitigates the amount of tax you owe. The EIC may also generate a refund. 

The general rules of claiming Earned Income Credit Include: 

You cannot be Married Filing Separate. 

You need to have a valid Social Security Number and have Earned Income from either wages or self-employment income. 

You must be a U.S. citizen or resident alien. 

You must be able to claim as a dependent a qualifying child who is under the age of 19 or a full time student who is under the age of 24 and who lives with you for over half of the year.  

To read more about the Earned Income Credit (EIC)  and to be certain you qualify before claiming see IRS Publication 596. 

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/Gwinnett/Atlanta CPA Reminds Atlanta Taxpayers that D-Day is Today 

Today is the last day for individual taxpayers to file and pay their 2009 Personal Income Taxes. There is no “Pass Go” or “Free Pass” as taxpayers are required to “settle up” and pay what they owe and to have it post marked today. 

For taxpayers who will not be filing their return today, they can use IRS Tax Form 4868 to pay any taxes owed and to legally extend the time for the filing of their personal return for six months, until 10-15-10. 

For taxpayers who do not file either their return today or file an extension the IRS/GA can assess regular penalties and interest, and in addition a failure to file penalty. 

For taxpayers who do not pay their taxes in full today the IRS will assess failure to pay penalties and interest, until the amounts are paid in full. 

So run to the post office today before it closes to ensure that your tax obligations do not unduly grow. 

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!

His CPA Offers a Wide Range of Tax, Financial and Consulting Services

His CPA offers a wide range of tax, financial and consulting services especially tailored towards helping you achieve your goals and an ultimate level of success. Have you ever wanted to work with someone whom you felt really cared about you, your business, your retirement, and planning for your family? I have a heartfelt conviction that I really want to “serve” my fellow Business Owners and to give advice that hopefully you will feel are beyond the scope of CPA services you ever experienced.

Do you want that ole’ time feeling of being served by someone sensitive to you? I welcome meeting with you FOR FREE to discuss you and your business’s plans.  I work exclusively with business owners who are striving to maximize their profit and potential. I bring to the table 31 plus years of experience as a CPA and 21 years of managing my own successful practice.  I strive to anticipate bumps in the road so that you might be able to focus on the business of running your business. I would welcome meeting with you for an initial consultation. Below you will find just a few of our services. Below is a sample letter we might send a client to ensure that we have all of the required data to properly prepare income tax returns:

In getting started on your returns: 

We will need to do both corporate returns prior to finishing your personal. 

If you are presently not using one of the companies and do not plan to do so in the future, I suggest we mark this return FINAL and that you notify the Secretary of State and close all accounts, etc. Please advise as to how you would like for me to proceed. 

Please confirm if you will be claiming your three children this year and your mother, as you were able to/did last year. 

Please forward the property taxes on the car. 

Please forward any cash or property contributions to charity, being sure to also forward copies of your year-end tithing statements. 

Tax law does not allow us to deduct tuition for private school, but will allow, if you qualify a credit for Child Care Expenses. Please review/advise. 

If you can get to me this a.m. documentation of the Estimated Tax Payments for 2009 for IRS/GA then I will most likely be able to get personal return done by 15th. 

Please keep in mind that if you have more than one employer or also pay self employment tax that the 2009 limit on the payment of FICA taxes is based upon $106,800 of Earned Income. If you had more than one employer during the year and had combined wages over this limit, you will want to ensure that you claim as a credit against your overall tax bill any excess FICA taxes withheld.  

ASAP after I get data for returns I will get them completed and out your way.

1 Peter 1:25 but the word of the Lord stands forever.” And this is the word that was preached to you.

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/Gwinnett/Atlanta CPA Reminds Atlanta Taxpayers that Personal Income Tax Returns are Due April 15, 2010

The initial due date for personal returns is April 15. For returns not filed by that date both the IRS and GA allow for a six month extension/IRS Form 4868. Please be reminded that there are no valid extensions after the October 15 final due date lapses. Please be reminded that an extension to file is not an extension to pay and that you are required by tax law to pay applicable taxes as the monies are earned or you will be subject to additional penalties and interest. 

Please be reminded that the mileage rate for 2009 is 55 cents per mile. For 2010, the mileage rate is 50 cents per mile. Please turn in an expense report monthly to get reimbursed for these and any other business expenses you might have paid personally. IRS tax rules require you to have a day by day log to support business miles. Please be reminded that extending the filing of a return does not delay the need to pay as you go as both the IRS & GA will bill you for penalties and interest if you do not pay your taxes during the tax year to which they relate. Below is a checklist that I encourage taxpayers to use to pull their personal income tax information together:

Atlanta CPA Prepares Tax Checklist to Prepare Your Personal Income Tax Returns:  

• Copies of all reported income forms, i.e. Forms W-2, 1099, brokerage statements, interest, dividends, etc.
• Summary of all medical expenses with copies of all individual items over $1,000.
• Summary of property taxes with copies of all individual items over $1,000.
• Summary of Ad valorem Taxes (property tax on cars) with copies of all individual items over $1,000.
• Summary of Mortgage Interest with copies of all individual items over $1,000.
• Summary of cash and property contributions with copies of all individual items over $1,000.
• Be sure to include any changes in address, dependents, filing status, or any other substantive changes from the prior year which would have impact on this year’s return.
• Please forward student loan interest, child care expenses, tuition, and any other miscellaneous deductions/income.
• Please be sure to let me know of any changes to the claiming of dependents, filing status, address, etc.
• If you are a new client to us please bring along for both corporate and personal a copy of your prior year tax returns. If a brand new corporation, please forward along a copy of your incorporation papers, Federal ID #, and your S Corporation acceptance.
• If you have had any independent contractor/proprietorship income you have earned, whether you have received a Form 1099 or not, please use this form (PDF) (Excel) to recap all revenue and expenses.
• Please be sure to let me know how much you received from the Economic Stimulus Plan during the year.
• All K-1s where you and an investment interest including an acknowledgment if you have sufficient basis to take the losses listed.

The initial due date for personal returns is April 15. For returns not filed by that date both the IRS and GA allow for a six month extension. Please be reminded that there are no valid extensions after the October 15 final due date lapses. Please be reminded that an extension to file is not an extension to pay and that you are required by tax law to pay applicable taxes as the monies are earned or you will be subject to additional penalties and interest.

James 1:17 Every good and perfect gift is from above, coming down from the Father of the heavenly lights, who does not change like shifting shadows.

I am looking to grow my business by adding key accounts like you with goals and aspirations just like yours.  So if you know anyone looking for a Good CPA, please let me know and to check me out at www.HISCPA.com  or our book ministry at www.John-Dillard.com Please be sure to allow 10 days for me to complete the returns.

John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304 

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

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping

Flowery Branch/Johns Creek/Hall/Forsyth CPA on Using Estimated Tax Payment Forms

Perhaps the most common error is the failure of taxpayers to anticipate their current year’s taxable income and to plan ahead by paying the IRS and state taxes as the income is earned.  Failure of taxpayers in any of the above areas will also negatively impact their ability to plan for and pay their taxes on a timely basis.  Also the U.S. tax system is a graduated system in which the marginal tax rates increase as does a taxpayers income.  Taxpayers fail to see their return as the dynamic calculation that it is, as income and lifestyle changes and tax law continually impact a taxpayer’s final calculation of tax liability.

Find a CPA who aggressively works to be proactive in the planning for and anticipation of what will be your year-end liability.  Put our firm to work for you to avoid unnecessary and unpleasant surprises. Below is sample letter we might get from a taxpayer seeking to understand the nuances tax planning and how to pay your annual tax liability.

Didn’t realize I could do that, I saw your notes on it though.  Certainly sounds easier though.  Would I have to send in 500ES/1040ES forms just for record even if no payment is due?

I’d estimate 2010 Corporate Profit before my salary would be 20% more than what it was in 2009.  That’s optimistic, but I’m an optimistic kind of person.  2009 was a very slow year, and things are starting to get better, actually much better than 2009 so far.  Last month was our one of our best months ever.  Strangely things still feel really tight, but one foot in front of the other we’ll grow through it, I hope . 

Below is my response: 

Using your estimate I will do some tax planning and calculate based upon that what your total withholding for the year should be. As things change (up or down) please do not hesitate to adjust the withholding accordingly.

You are right it is after all other business expenses but before any salaries and distributions to you, as these will be the monies that you pay taxes on. Essentially this will be your projected W-2 and the K-1 from the 2010 Corporate Income Tax Return/Form 1120S. In essence it would be taking the net income off of the Profit/Loss and adding back you salary. 

Please put on your schedule the first of September of this year to get an updated projection to me so we might update your withholding accordingly. You will not have to file the IRS Tax Form 1040ES or GA500ES as you will be paying all of your projected/estimated taxes via payroll withholding.

1 John 5:14 This is the confidence we have in approaching God: that if we ask anything according to his will, he hears us.

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/Roswell/Atlanta CPA On Keeping Your Corporate Income Tax Simple

If your business is an S Corporation, there are no income taxes are paid with the corporate return. The profits of the business are reported on the personal tax return of the S corporation’s shareholders. As long as you pay yourself a reasonable salary, you may also take shareholder distributions out of the business that are devoid of FICA/Medicaid taxes. Another advantage of S Corporations is that if you have corporate losses, and you fund (you put the money in the business) those losses personally, then you can deduct those losses on your personal return. Any losses that are funded by the bank (a direct loan from the bank to the corporation) or by trade creditors are not deductible. Below is sample letter we might receive from a client looking to do tax planning for 2010.

The envelope with my personal 1040 and 500 has a cover sheet that says the 1040ES and 500ES vouchers should be in there too, but I can’t seem to find them anywhere in that packet.  Do you have PDFs of those you can email me? 

Below is my response: 

I suggest to all S Corporation clients that we do not use Estimated Tax Payments. An owner should report the K-1 profit, which is based upon their share of the business and not the amount of their shareholder distributions. This is a common misnomer about S Corporations and often leads to confusion for the new business owner. To that end it is best to remember that you pay taxes on the profits when you make them and not when you take them. For example generally speaking if your business nets $100,000 and you are the sole owner, you will pay taxes on $100,0000 whether you take zero dollar of shareholder distributions, a $100,000 or any number in between. Thus if you were to have a $100,000 profit in any given year and take no distributions then you would be able, absent any other issues, to take shareholder distributions in subsequent years with no additional tax responsibility as these monies would have already been taxed. 

I suggest that you get to me an estimate of your 2010 profit before any salaries or distributions to you and then I can tax plan for accordingly and advise you as to what you should have withheld from your paycheck so that you do not also have to pay quarterly estimated payments.

Proverbs 3:5  Trust in the LORD with all your heart and lean not on your own understanding;

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!

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. 

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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.