The Economic Stimulus Plan and Your Business

President Obama’s economic stimulus plan means change — and Paychex is ready. Is your business prepared? Paychex has been monitoring the stimulus plan, as well as several additional economic proposals, to help you understand how they may affect you, your business, and your employees.

What is the Economic Stimulus Plan?

Signed into law on February 17, the American Recovery and Reinvestment Act of 2009 is a plan to grow the economy through tax relief and investments in health care, energy, and education.

What Does It Mean for Your Business?

Paychex has been following several provisions that could have a significant impact on your payroll, taxes, and retirement plans.

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• A tax credit for workers, administered through employer payroll. Updated 2/26/09
• Premium assistance, a special election period, and an additional plan enrollment option for COBRA recipients. Updated 2/26/09

What is the Status of Other Economic Proposals?

Beyond the economic stimulus plan, Paychex is monitoring several proposals for economic growth, including:

Click the links below for more information

• A federal minimum wage increase.
• Penalty-free withdrawals from retirement accounts.

A provision to suspend the required retirement plan distribution for those aged 70½ and older was passed in December, 2008.

Are You Ready for What’s Next?

Every year, Paychex monitors thousands of changes in local, state, and federal laws that affect our more than 572,000 U.S. business clients. No matter the outcome of the stimulus plan and other economic proposals, you can be assured that we will continue to take care of the administrative details — so you can focus on running your business.

Keep Up with the Latest Legislation

Please bookmark this page and visit often for the latest updates on the economic stimulus plan, as well as other pending government legislation.

For information about Paychex products and services, please complete our product request form for a no-obligation quote or feel free to contact Martha Jane Walker of Paychex at 678.699.5988.

Any information provided by this website may no longer be viable subsequent to its issuance. Any information it provides is developed at the time of its issuance based upon facts and circumstances known at that time. 

Provide here by John Dillard is a 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 visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 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!”

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, Bookkeeping.

Atlanta CPA Advises on Completing the Election by a Small Business Corporation and Form 2553

Beginning with the 2009 filing season for 2008 S Corporation Income Tax Returns, the IRS has just made the process easier for those who inadvertently the election late. For years the S Corporation Election, or Form 2553, was to be file within seventy five days of the first day or beginning of the tax year to which a electing corporation desires to make it effective. For example, if you are a brand new corporation who just incorporated on June 1, 2008, then you would have seventy five days from 6-1-08 to make the election. Similarly if you were a corporation that had been a C Corporation for years and would like to be an S Corporation for the 2008 tax year, then under the old rules you would have had to made the election by March 15th or seventy-five days after 1-1-08.

Starting 1-1-08, if you qualify, corporations who neglect to have satisfied the old 75 day requirement can still do so if they qualify. To be an S Corporation you have to:

-Have only Resident Aliens or U.S. citizens as shareholders.

-Generally have a calendar year-end.

-Have less than one hundred shareholders.

-Have one class of stock.

Under the new rules a company desiring to be a S Corporation can elect to do so with the filing of their Corporate Return, Form 1120S, as long as:

-They attach a properly Form 2553, Election by a Small Business Election including the effective date of the election, signed approval of all of the company’s shareholders.

-They attach a reasonable cause for the late election.

-Form 1120S is filed either by the original due date or plus the automatic six month extension, if timely elected.

-None of the shareholders have filed their personal returns showing reflecting that the company is not an S Corporation.

Please note that similar relief is available for an entity eligible electing to be treated as a corporation, such as an LLC converting from a partnership to a corporation for tax purposes.

Generally speaking the IRS will respond to S Election request within sixty days of their original filing. For those not receiving their acceptance on a timely basis you can call the IRS at 800.829.4933. If a company fails to meet the new relaxed filing requirements for S Corporation status, they can still request a Private Letter Ruling and pay a user fee.

John Dillard is a 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 visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 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!”

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, Bookkeeping.

 The National Sales Tax and the Flat Tax Explained by Atlanta CPA

Touted as the great fix to the issues of the IRS, both the national sales tax and flat tax may cause many more problems that they attempt to resolve. There is a lot of confusion in both understanding and compliance with tax law.  Unequivocally our tax system is fraught with layers upon layers of interpretations, case law, and frequent changes that have often left the remaining legislation even more difficult to manage than before.

Over the years there have been many simplification rules that have truly made our tax system easier to understand and apply but items such as the alternative minimum tax, depreciation rules, and automobile expense recording remain impossible for the layman to understand and for the professional to interpret. Often our tax law is so difficult to understand those whose job it is to ensure their compliance are as confused as taxpayers.

Our initial response in life is to “shoot the messenger” and it is to that end that much of the undue criticism has been levied. People often fail to recall that the IRS did not create itself but instead was created over time by our elected officials. Essentially most every, if not every, law was created by Congress and then signed into law by the President. Though certainly we cannot abolish Congress or the Presidency, nor would we want to; we do need to collectively combine our efforts as a people and demand simplification to our tax code. It is only through this means that we will ever have a system that is easier to understand and easier to comply.

By having a system that the majority of citizens view as fair will, we all have an opportunity to have a system that we are all proud of and that works to collect the just and fair taxes from each of our citizens. There is no doubt that all citizens who live in this country and call the U.S. their home should pay their just and fair taxes whether they are here legally or not. It is only by all people participating together and by pulling their own weight can our system obtain true compliance and success.

For Who is Given Much; Much is Expected

If you will look back to the beginning to time, through the time of the Roman Empire, and up until today that a predominant portion of wealth was held by a minority of our world’s inhabitants. In third world countries this discrepancy is even greater. If you were to go back even to the time that Jesus walked the earth, you will find in his teachings that “for who is given much, much is expected.” I believe his teachings make this clear that this applies not only to our talents and skills but also to our financial resources.

Our present tax system is a graduated tax plan, which assesses no income tax on those with little to no taxable income and this slowly graduates upwards with each substantive change/increase in income. Thus a taxpayer in the highest federal income tax brackets will pay a dramatically higher rate than those at the lower income strata. Our system has long held the standard of charging more to those who have more. I believe charging those who are in the upper income brackets, based upon their heightened wealth, should be able and should pay a substantially higher tax in both terms of dollars and percent. If we were to discredit our present hierarchy of taxes with the more affluent paying a higher portion of the overall tax bill needed to run our federal government then the deficiency would have to be made up elsewhere.

Flat Tax

The premise of a flat tax in its utopianism is not challengeable. It sounds great because it is great as it is fair, with everyone paying the same percentage. As all tax systems would have to be revenue neutral in their application and collection, the flat tax would fail for two substantial reasons. First it will not be fair. The affluent people in the U.S. who now control much of the country’s wealth would soon control even more. It is true that everyone would pay the same tax rate as this would be “fair” but this would result in the poorest of our citizenry paying the same tax rate as our country’s richest.

In order for the tax itself to be revenue neutral, the lowest paid taxpayers would take more of a bite economically in terms of both dollars and percent.  Obviously our tax system itself would be easier as people would pay a percent of their gross income, however most of our people would indeed be financially worse off than before if a flat tax ever passed.

National Sales Tax

The national sales tax program, sometimes known as the Fair Tax, has more intellectual appeal as buyers of goods and services would pay a higher sales tax which would replace the federal income tax system we presently now have in place. This also fails on many levels. Foremost is a concern that instead of being a boom to our economy, a bust is much more likely to occur as the products and goods we now buy would be substantially more expensive.

Sure we would have no income taxes being withheld from our paychecks as the IRS as it exist today would be gone, however when goods and services become immediately much more expensive you will face issues such as runaway inflation as people strive to cope and grapple with the inflated values. Also, you will see many of the larger purchases, on which our economy is largely based, come to a standstill as car buyers are shell shocked as the price of vehicles sky rocket because of the new prices. At the least this would cause a major recession and at its worst potentially a depression.

Furthermore, the national sales tax program is supposed to be an asset in making sure all who live and buy here pay their part so that taxpaying citizens are not bearing the burden for those who are either here illegally or do not pay their just taxes. To some degree this intended effect would certainly be attained. However, those who are willing to do a deal under the table to avoid paying taxes would have a much greater temptation and unfortunately a much greater reward if consumer purchases and business dealings were not done in an ethical standard. In fact, the worst fear is that rather than stopping a leak in our economic system, the national sales tax would soon start a series or problematic events. In addition as the most affluent typically spend more in dollars but less in percentage of their gross income, the affluent would again gain more benefit rather than less resulting in the middle and lower class again paying more rather than less in taxes.

At HIS CPA PC we care much more about you than your taxes. As a CPA I remain unconcerned about my livelihood in the event of a change to either a Fair Tax or National Sales Tax for my concern is our people and their right to make just and informed decisions for themselves and their families.

John Dillard is a 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 visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 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!”

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, Bookkeeping.

Atlanta CPA Teaches Understanding Georgia S Corporation Returns

If you own your own business and have set up as an S Corporation you are certainly surprised by many of the nuances of Form 1120S for the IRS and Form 600S for the state of Georgia. Like its federal counterpart Form 1120S, the Georgia Form, the 600S, the return is due by March 15th of each year or by the fifteenth of the third month, after the end of the company’s fiscal year-end. Also, as S Corporations are a “flow through” entity the profits or losses of the business show up on a individual shareholder’s personal return. Thus, there are no income taxes paid with either the filing of the IRS’s Form 1120S or Georgia’s Form 600S. However there is a net worth tax which is assessed and paid on the Georgia Form 600S based upon a company’s net book value, which is essentially the combined total of their retained earnings accounts. Returns are filed to the Georgia Department of Revenue.

As part of the Federal 2008 Economic Stimulus package passed Section 179 Depreciation (what taxpayers can write-off in full for fixed asset purchases) was increased to $250,000. As with past years this limit applies both at the corporate and individual shareholder level. The Georgia limit for Section 179 Depreciation, with the passing of the state’s Small Business and Work Opportunity Act of 2007, was increased to $128,000. Thus Georgia Corporations when making the full deduction at the federal level on Form 1120S must make an adjustment to the Form 600S. A complete copy of the federal return should be attached to the Georgia Return prior to filing. If the Georgia Form 600S is amended at the corporate level, there is no separate return and prepares should check the appropriate box on the form to indicate an amended return is being filed. If for any reason a federal return is adjusted, amended or changed due to an audit the corresponding Georgia Return should be amended as well within 180 days of any IRS change. Amendments to Georgia are reported on Form 500X. If any Georgia Corporation does business or owns property within the state then Form 600S and the Allocation and Apportionment of Income schedules should be completed.

If the Georgia Return or Form 600S needs to be extended it can be by filing a Form 7004 with the Internal Revenue Service that Georgia accepts as having been sufficient notice to them. If you are going to owe any taxes with the Georgia Return you will want to pay them via Georgia Form IT 560C by the original due date of the return as otherwise penalties and interest will be assessed on late payment. Keep in mind at all times, that an extension to file, is not an extension to pay.

In general terms the tax imposed and assessed by the state of Georgia is based upon the portion of business income that is reasonably attributable to Georgia sources, property owned and business done in the state. For tax years beginning January 1, 2008 or later the allocation is calculated by using the 100% gross receipts factor.

If you have a non-resident shareholder (an individual owner of the S Corporation who does not reside in Georgia), they are required to attach a consent agreement acknowledging their responsibility to file a individual or personal Georgia Return, a Form 500, to report and apportion their income to Georgia as well as other states where they file individually.

John Dillard is a 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 visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 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!”

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, Bookkeeping.

Financial Considerations for Atlanta Georgia Business Owners

For those who own their own business, it’s no secret that personal financial security is very closely tied to the success of the business. And with the never-ending task of overseeing day-to-day operations, owners may find it difficult to focus on broader financial issues associated with running a business. Following is a brief checklist of some of the most important items business owners should consider, along with an explanation of how each fits in the big picture. 

Qualified Retirement Plan.  To help you with the all-important task of planning for retirement — both for yourself and for your employees — a qualified retirement plan allows you to build a portion of your wealth independently from your business. For you personally, such a plan offers several advantages. For one thing, you can reduce your personal taxes by contributing to a retirement plan. In addition, these plans allow for tax-deferred growth on your plan investments that may provide a significant amount for your retirement. 

Aside from the personal benefits, you may also be eligible to receive a business tax deduction for the cost to establish and maintain the plan, and for the employer contributions you add to your employees’ accounts. A good retirement plan will also help attract, reward and keep good employees, which could prove to be a competitive advantage for your business. 

Compensation.  While a qualified retirement plan can be a good start to building wealth for retirement, it may not address all your needs and objectives. In some cases, you may need to provide additional options for the owners or other highly compensated individuals within your business. Though they only apply in limited circumstances, nonqualified deferred compensation plans allow you to address these unique needs through several options. Some plans let executives defer a portion of their compensation, while others let employers provide tax-deferred compensation to this select group.  There are also excess deferral plans for highly compensated individuals who may be subject to contribution limits with qualified plans. 

Beyond the salary and deferral issues, there are several other elements that make up total compensation. You may want to provide life insurance as an employee benefit.  Group term life insurance, individual and group disability insurance and individual and group long-term care insurance are additional benefits that could be offered for employees. In addition, you might consider other benefits such as 529 college savings plans, which can help employees save money to send their children to school. 

Insurance.  In business, you face many risks you cannot control. In that light, it only makes sense to try to reduce the effects of those risks to the extent possible. Remember, one of the most valuable assets of the business is you. For this reason, you should make sure to have adequate life and disability insurance for yourself, in order to provide financial security for both you and your family. 

If the owner of a business or a key employee dies unexpectedly, the business could suffer as a result. Key-person insurance can provide cash to help your business continue operating in difficult times, and it may surprise you how affordable it is to effectively reduce a serious risk to your business. 

While these are just a few of the major concerns business owners face, you may want to take time to consider the many options available to help you address these issues.  A financial advisor can be one key member of your team to help put your finances in order, so that you can spend your time doing what’s most important — building your business. 

The accuracy and completeness of this article are not guaranteed. The opinions expressed are those of the author(s) and are not necessarily those of Wachovia Securities/Wachovia Securities Financial Network or its affiliates. The material is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. 

This article was written by Wachovia Securities and provided courtesy of The Strong Gaddy Lilly Wealth Management Group in Gainesville, GA.  They can be reached at 770-532-6361 or 1-800-332-6361.

Wachovia Securities is the trade name used by two separate, registered broker-dealers and nonbank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC Member, NYSE/SIPC, and Wachovia Securities Financial Network, LLC (WSFN), Member FINRA/SIPC.  

Investments in securities and insurance products: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE    

Presented here my Atlanta Christian CPA, Author and Speaker John Dillard CPA who can be reached at www.HisCPA.com or by calling at 770.814.9304

 2009 Year-End Tax Planning

The end of the year is a good time to focus on tax planning and assess your financial status and goals. These strategies may help minimize your tax bill.

Thinking about your taxes will almost always give you a headache, especially around the holidays. But staying on top of your finances as the year comes to a close can mean the difference between owing thousands of dollars in federal taxes and receiving a sizable check from the government in the spring.

Martin Scoll, Vice President of Life Event Services for Wachovia Securities, says it is paramount to start preparing as early as possible. “Good tax preparation and planning starts on January 1,” he says. “Don’t wait until December to start dealing with your year-end planning. Reviewing your finances and giving some thought to your taxes in October and November will not only keep you ahead of the game — it will also likely save you money.”

Here are some tax-efficient strategies to consider as the end of the year approaches.

Review Your Investments

Real Estate. For many people, a home is their best investment. Not only does a home typically rise in value over the long term — it also provides one of the best tax advantages out there, since the interest paid on a mortgage is generally deductible from your federal taxable income.

Stocks and Mutual Funds. Scoll says it is important to give your entire portfolio a review as the year comes to an end. If you have taken a loss from some stocks this year, it might be wise to sell them off before the end of December. Losses in equity markets can be used to offset any capital gains on stocks that have been realized during the year, and any excess losses can offset up to $3,000 of ordinary income, with any remainder carried forward for use in future years.

If you do decide to sell off stocks, make sure to do it before December31, the last day of the year the stock market is open. Getting stuck holding stocks with losses will not decrease your tax bill.

Also, if you are expecting capital gain to be returned from a hedge fund in which you are invested, try to defer that event until the beginning of next year, unless you think the rates will be substantially higher next year

Retirement. If you are receiving distributions from your qualified plan, you can roll over the entire balance or distributions in excess of any RMD (required minimum distribution) into a traditional IRA. If you do this custodian to custodian or within 60 days (subject to limitations), you will not have to pay taxes on those distributions. Be sure to speak with your Wachovia Securities Financial Advisor before setting up the IRA account.

Give Away Money, Increase Your Deduction

Often people donate money in the fourth quarter to increase their tax deductions. “Philanthropy is definitely something to consider,” says Scoll. “But there are limitations to how much you can give to charity and use the deduction.” You should talk to both your tax advisor and your Financial Advisor before embarking on a philanthropic giving plan.

There are also other kinds of gifts you can make to reduce taxes for long-term estate planning. First, you can give up to $12,000 per donor per recipient to family members and others each year without triggering gift taxes. You can also give to your children’s or grandchildren’s education through 529 savings plans. You can gift $12,000 a year to a 529 plan tax-free — or better yet, take advantage of a law that allows you to give a single contribution, covering five years, to a 529 plan. That means you can give a maximum of $60,000 (five years of gifting) per donor per recipient tax-free in one year — and still be able to move that money between heirs’ education funds.

Please consider the investment objectives, risks, charges and expenses carefully before investing in a 529 plan..

Additional Tax-Saving Tips

In addition to reviewing your investments, there are other strategies that can help save you money come tax time.

Scoll believes it is always cost-effective to hire a good accountant. “Very often a good tax preparer is going to save you more money than he is going to cost you,” Scoll says. “It pays to have a smart professional help you prepare your taxes.”

While spending some time at year-end preparing your taxes is a smart idea, it’s also a good time to assess your financial status and goals for next year — so that when the end of next year rolls around, your investment and tax planning will already be off to a strong start.

Be Sure to Consider:

• Making the necessary adjustments in your portfolio to help maximize your tax savings this year.
• How you should approach and adjust your IRA to avoid paying unnecessary taxes.
• Gifting money to family members or your children’s education fund to reduce your future estate taxes.

Withdrawals are subject to ordinary income tax and may be subject to a federal 10-percent penalty if taken prior to age 59½.

This article was written by Wachovia Securities and provided courtesy of The Strong Gaddy Lilly Wealth Management Group in Gainesville, GA. You can contact Mr. Michael Gaddy at 770-532-6361.

Finding a Good Christian CPA in Atlanta & Beyond

Finding a Good CPA in Atlanta does not have to be as hard as it seems. However when you begin your search, at first appears an insurmountable and daunting task beyond what you ever imagined. Maybe you are new in town or have just started your business and you don’t know where to turn. So you log into the Internet and your computer and begin to look on-line for a CPA in your area whose talents might be best suited to help you. Your goal will be to find a CPA whose talent and expertise fits your specific business needs and working style. CPA’s, like physicians, specialize and are usually better versed in one expertise or another. For example, if you are a business owner, then you will want to secure a CPA whose practice is geared specifically towards the needs of the entrepreneur and not a CPA who is generally more of a personal tax return preparer.

Your first task should be to evaluate the CPA’s web site to discover both the quality and quantity of the content as well as to whether or not it is current. By reading through several of the articles you will soon discover a bit about the CPA, his business habits and desires, his tenaciousness and technical ability. If the web-site fails this test then perhaps it is time to move along to the next option. If their material is insightful, practical and gives you a new way to look at your tax and business issues, then an initial phone consultation would be advantageous. If your conversation flows easily and you feel like you have a good rapport, then it would be prudent to have a face-to-face meeting to go forward in your relationship. It as is well at this point then, just to be sure, proper due diligence would include the checking of references. There is much to know about this process and the below articles will do much to equip you and speed you on your way to a wise and judicious business decision.

What To Look For When Selecting A CPA
Selecting a professional is a daunting task. This guide will enable you to be better able to select a professional whose talent, expertise, and style will best assist you long-term.

Finding an Atlanta CPA
Even though all Certified Public Accountants must meet strict standards to earn their license, A CPA’s experience, education and life experience can help you select the right firm for your needs.

Top 10 Reasons to Contact Our Firm
Learn the key reasons why His CPA, P.C. cares about your business and how you can benefit from being served by a CPA whose ambition for you and your business matches that of your own.

Free CPA Consultations
Do you want that good old-fashioned way of doing things where your CPA looks out for you and your interests. We believe that your initial business consultation should be free so that you might make the best hiring decision without fear of getting a bill for the first thirty-minute interview.

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

Pray, Vote, Pray…The Eve of the Presidential Election

On the eve of the election we are all now faced with determining which of the candidates would be best for our country. The candidate we select should not be the one we like best or be because of racial or gender lines. The candidate we select should be of the highest moral fiber and one who will stand unflinchingly in the heat of battle and criticism.
 

I believe now more than ever that the fate of our country hangs in the balance and indeed the immediate future of our economy as well as the long term safety and security of our county. Let not your vote be guided by family ties or allegiances, but let your vote be determined in the same way that we will all one day be judged by the truth. To learn more about the candidates and their stand on all the issues including morale issues, the economy and taxes www.gachristianalliance.org   Regardless of the candidate selected let’s pursue unity together praying for a define purpose for our lives, our country and our children.

To read more visit http://www.gachristianalliance.org/aboutus.htm

Pray, Vote, Pray.

How to Process an Offer in Compromise with the IRS: Determining the Offer Amount

So you have tax problems, which seem will never go away. You work diligently to get all of your returns properly prepared and now you receive an IRS notice that promises liens on assets, levies to bank accounts and garnishments to your wages. Each notice shows up with the balances due creeping higher, always a bit more than the last. You owe for years of back taxes, penalties and interest and the amount due now seems insurmountable. Perhaps you have even been on an installment plan but the amounts you are paying monthly are less than what is being assessed for additional penalties and interest. Facing what feels like an insurmountable debt,  may well give you the sensation that your are entering the twilight zone. You do have options with one of those being the possible submission of an Offer in Compromise. There is light at the end of the tunnel, but it requires determination, resolve and the experience of a CPA who is well versed in these matters.

Though there are many forms to complete including Form 656, which is where the actual offer amount is documented, Form 433A for wage earning taxpayers and Form 433B for businesses owners. Forms 433A for individual taxpayers and Form 433B are the predominant source of information for both taxpayers as well as the Internal Revenue Service to determine a settlement amount. In general terms, the settlement amount is calculated by taking the total of a taxpayers net worth and their excess cash flows (discounted into today’s dollars) over the next five years.

Determining Net Worth

A taxpayers net worth is determined first by adding up all of the assets that a taxpayer owns. This would include their home, furnishings and fixtures, vehicles, cash balances, cash surrender value of any insurance policies, real estate investments, stocks, bonds, and essentially every other asset that a taxpayer owns. If married and submitting a joint Offer in Compromise then the assets reported would also include any assets of both spouses. From the total of the assets, one would subtract the outstanding debt for which a  taxpayer has including home mortgages, car loans, credit card debt, equity lines, and generally all of the outstanding loans one has. All of debts (if submitting a personal offer on Form 433A and if submitting a corporate offer on Form 433B), are generally listed on the forms alongside the asset to which the debt relates along with detailing the monthly payment being made and any available credit, which is at present unused.

Determining Excess Cash Flows

Perhaps the most elusive portion of determining the offer amount is the calculation of what excess cash flows are available to the IRS and can be applied against any outstanding monies due. In layman’s terms, this determination is based upon the result of listing a taxpayers monthly income and qualified expenses. The income sources would generally list all taxable income that a taxpayer has been receiving and may be reasonably expected to receive in the future. Also a detailed listing, by category, is prepared showing all a taxpayers monthly expenditures by category. For individual taxpayers ,the IRS has statutory tables which are used to prepare the monthly amount listed. These tables are based upon the monthly income of a taxpayer as well as their family size. The expenditures detailed are frequently the most widely discussed and debated of all the items listed anywhere on the offer forms as often what a taxpayer feels is a necessary and required expense is not viewed in the same light as the same by the IRS. After any monthly excess is determined then this total is multiplied by sixty months (five years) and then discounted back into today’s dollars. This calculation is then added to the net worth amount, as determined above, to list the initial offer amount.

Offer Submissions

Both the IRS and GA are encouraged by tax law, but not required, to cease all collection efforts while an offer is being considered, as long as they feel the offer is being tendered in good faith. Just as the IRS desires to work with taxpayers who have a valid offer for them to consider, so should taxpayers only submit offers if they truly qualify. In this way, both parties are best able to work in good faith to resolve and satisfactorily determine a fair settlement amount.

Getting a good Atlanta CPA to help with your tax issues is your best first step to obtaining sound business and tax advice helping to ensure the likelihood of your business and family home finances.

Contact John Dillard CPA of His CPA at 770 814 9304 and visit www.HisCPA.com

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 Taxes, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.

We serve clients that are located in Atlanta GA, 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, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond.

Incorporating in Georgia

So you have opted to get a new business going and have gone to the Secretary of State’s web-site and it all seems to be a fill in the blank so you think everyone can do it. All you have to do is to know your business name and address. Right? Well, not just no; definitely no.

Most all, who go it alone fail to consider some and many all of the below issues:

Authorized Shares. How many initial shares to initially authorize leaving no room for flexibility to add future shareholders later.

Registered Agent. Naming a individual who will be the point of reference for all legal filings.

By-Laws. The rules and regulations under which a business will make decisions and the functional capacity of its owners.

Election of Officers. This will be those who are duly authorized to sign contracts on behalf of the company.

Election of Directors. All S and C Corporations should have a duly authorized and elected Board of Directors, even if you are the only one on it.

Stock Issuance. All corporation should have and record the issuance of stock evidencing their ownership in the company.

Board of Directors Meetings. Meeting should occur on a substantive and periodic basis documenting substantive decisions reached and determined.

Shareholders Meetings. Meeting should occur on a substantive and periodic basis documenting substantive decisions reached and determined.

Just as you would not want to perform your own major surgery so will you not want to incorporate yourself.

At His CPA PC we work hard to help you keep your tax bill as low as legally possible be helping with Entity Selection, IRS Representation, Offer in Compromise, and Corporate and Personal Income Taxes.

Contact John Dillard CPA of His CPA at 770 814 9304 and visit www.Hiscpa.com

We serve clients that are located in Atlanta GA, 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, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond.