Atlanta/Duluth GA  CPA on Required Documentation to Prepare Corporate and Personal Income Tax Returns

Below is a sample letter that might be used to assist a taxpayer in ensuring that tax returns are properly prepared and substantive data is provided in order to adequately prepare both corporate and personal income tax returns, while keeping one’s tax bill as low as legally possible, while also staying focused on long term and strategic issues:

I am following up on the data you forwarded and had the below critiques. Please go over these ASAP and send back to me the revised data:

-If you are treating and recording the business’s you have listed separately they need to be appropriately listed and recapped. Please review/advise.

-Please confirm if/that you are doing all of your business in the corporate account. Otherwise you risk losing the tax advantages and legal protection of being incorporated.

-As you are using business mileage all others costs relative to the car should be treated as Shareholder Distributions. In the future all of these monies (such as repairs/advalorem/maintenance, gas, insurance) should be paid personally.

-Please take off of your business listings any monies you paid personally as charitable contributions and forward to me a recap of your charitable giving, while providing copies of year end statements from the organization you donated to.

-Please note that tax law will only allow you to deduct a business phone in your home, provided it is a second line.

-Please list the Insurance and Property tax on your home and utilities as Shareholder Distributions and then to pay these monies personally in the future.

-Please note tax law does not allow the deduction for the cost of clothing, unless it is for a uniform that is unsuitable for other use.

-Please confirm if the rent expense you listed was paid to an outside landlord.

-Please be sure for all corporate activity to list both the beginning and ending checkbook balance.

-Please advise if you have any other income, dividends, interest income, W’2’s etc.

-Please be reminded that tax law requires you to pay your taxes as  you go. Please advise of the dates of all estimated tax payments to both the IRS and to GA.

-Please be reminded that the rules of an Offer in Compromise require all taxpayers to be current on both their tax filings and payments. Accordingly it will be imperative to both pay all taxes on your 2009 returns  ASAP and to forward to me what your estimated profit will be from each business for 2010 so that I can advise you accordingly what you should be sure to pay as taxes as you go for 2010.

-I suggest ASAP that you retain a payroll service and to begin processing your W-2 wages and your required withholding. Please be reminded the above OIC (Offer in Compromise) rules will, as well as tax law, require you to pay yourself a fair and reasonable salary given position and profit.

Utilizing a payroll service will do much to make this administratively burdensome process more seamless than if you strive to go it on your own. To learn more visit http://www.hiscpa.com/payroll.html

Knowing what is a legal tax deduction and the documentation thereof is essential to sound business management. To see  how you can be ready http://www.hiscpa.com/business-expenses.html

Ensure that your workers are properly classified predominantly to ensure that there are no workers, who are truly employees, that you are in error classifying as employees, visit  http://www.hiscpa.com/independent-contratctor.html

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

To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html  

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.

Award Winning Atlanta CPA Offers Assistance with Georgia Corporate Income Tax Returns 

Having helped Atlanta Taxpayers for Over Thirty Years with their Corporate & Personal Income Tax Return, I have learned that it is important to be a “Teaching CPA.” Be helping properly guide, assist and educate taxpayers I have learned that over time out tax clients become much more wise and prudent in both their financial and tax decisions. Below is a sample of a letter we might use to help a client understand the nuances of tax law, understand their personal tax situation, take every legal tax deduction and make prudent and long term financial decisions: 

I did not see/know that the company owned a car as I saw car interest and insurance on the P/L, which should be moved to the Shareholder Distribution accounts as all of these monies should be paid personally, as the company does not own a corporate vehicle. I generally recommend that all of clients own their cars personally and then turn in an expense report to get reimbursed for their business miles. As such, all of the  operating costs of the vehicle should be paid personally. Please re reminded to keep a by day log to support business miles. 

Please move the Gain on Sale of Fixed Assets to Other Income Section so that your Internal Books and Records will properly classify Income and Expenses. Adjust your sale of the fixed assets so that the appropriate fixed asset accounts on the Balance Sheet are relieved/zeroed out. 

Please confirm that the Long Term Debt amounts listed are correct and that all attendant Interest Expense is recorded. 

Please adjust as of  12-31-09 so that Total Retained Earnings equals $100,000. Please be sure to make the adjustment in the year that needs adjustment/reconciliation. 

Below is a list of Data needed for your personal return. ASAP after I get that along with your corporate data I will get the returns completed and out your way ASAP. 

It appears you are renting your old home here. If so, please compete the attached being sure to prorate items between the time of personal use versus renting. Also, I will need the mortgage statement on this property and the original purchase price of the home so that I can record depreciation. 

I did not see any information on the moving expense reimbursement you had mentioned. Please forward. 

Did you have any other income such as capital gains, distributions from pensions, interest, dividends etc. 

 Please forward the property tax on the cars. 

Please forward to me the date you moved to another state so that I can record accordingly and report your income appropriately on the state income tax returns. 

Please forward to me a detailed description of the items you gave to charities being sure to value the items at what they would sale for at a flea market/garage sale. 

Feel free to call might you have any questions. 

http://www.hiscpa.com/article1.html Sandy Springs/Roswell CPA Illustrates Difference Between Planning & Historical Accounting
http://www.hiscpa.com/article3.html Gwinnett/Duluth CPA Teaches Personnel Keys to Managing Business Growth
http://www.hiscpa.com/article6.html Atlanta  CPA Teaches the Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html Roswell CPA on Tracking Marketing Statistics for Your Georgia Business

 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/ 

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

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 

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

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.

Gwinnett CPA Teaches Business Clients Tax Law While Focusing on Operating Results 

When a CPA does a tax return they are best suited to give useful financial advice that an owner can use to turn information into profits. Just as a doctor will give invaluable insight to their patient, a CPA should be a clients closest financial confidant. Below is a sample letter that might be sent to a client to assist both in ensuring future business profitability and adequate tax documentation for a corporate/business client:

Regarding Your Corporate Returns

-Your cost of goods sold (cost of doing business) is 90% leaving only 10% to cover salaries and other expenses creating a book and tax loss of $100,000. I suggest ASAP that we review our pricing guidelines and adjust so that margins are at least 30%. This would allow for you operating expenses to remain the same and break-even. To ensure profitability, given present expense levels, I would suggest your strive for a gross profit margin of  35%. Please be reminded that the K-1 losses that are not currently deductible due to basis limitations are called suspended losses and are rolled forward until you have sufficient tax basis.

-Tax law does not allow S Corporation owners to deduct tax losses only to the extent or your tax basis (which is calculated predominantly by prior retained earnings and current loans made to the company). Therefore only approximately $15,000 of your $100,000 of tax losses are deductible.

-Tax law requires all S Corporation owners to take a fair and reasonable salary given position and profit. Based upon your operating results you might consider lowering your salary until profitable levels are maintained, while being sure to maintain the reasonableness statutes required by the IRS.

Regarding Your Personal Returns

-Please get to me a copy of the year-end statements showing total mortgage interest, cash contributions to charity and real estate taxes.

-Please get to me the property taxes paid on your personal vehicles.

-Please get to me the original purchase price and date of your rental property.

-Please turn in an expense report to get reimbursed for your medical premiums

-I did not see Association fees on your rental property.

Bookkeeping for a Small Business
Learn the ABC’s of accounting for the business and financial operations of your business. Visit http://www.hiscpa.com/keeping-books.html 

Preparing and Reviewing Financial Statements
Financial results of your business are like a doctors chart of their patient, this will help enable you to understand financials and their use. See http://www.hiscpa.com/financial-statements.html

Monitoring Your Books at the End of the Month
Month-end control procedures are critical, as any variance to these will negatively impact the reliability of your internal financial. These are just a few of the tips we give clients each and every day. http://www.hiscpa.com/monthend.html

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

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

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. 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.

Duluth CPA Illustrates Tax Return Preparation 101: Ensuring You Have Adequate Documentation to Prepare Your Income Taxes 

Besides the vast technical skill and experience required a CPA needs to prepare returns ensuring that all clients pay their lowest legal possible tax, a CPA needs to be well skilled and suited in other key areas of the profession as well such as:

-Tax Planning for your Metro Atlanta Business  http://www.hiscpa.com/year-end-tax-planning.html

-Planning for Georgia Retirement  http://www.hiscpa.com/retirement-planning.html

-Preparation of Financial Statements for Georgia Business Owners  http://www.hiscpa.com/financial-statements.html

-Incorporating in Georgia/Entity Selection  http://www.hiscpa.com/article2.html

-Avoiding Unnecessary Tax Audits for Atlanta Taxpayers  http://www.hiscpa.com/working-with-the-irs.html

-Much, Much, More  http://www.hiscpa.com/articles.html  

To this end a CPA should be well-organized thereby ensuring clear concise feedback to help taxpayers ensure that they are constantly reminded of tax law and documentation requirements thereof. To this end I have provided  below a sample of such correspondence.

 Please be reminded that I still need to finish for your personal return. 

-Copies of all of your year-end mortgage statements.

-Copies of all of your year-end real estate taxes.

-A recap of all of your cash contributions listing by vendor totals and copies of all receipts over $1000.
-A recap of all of your property contributions listing by vendor totals and copies of all receipts over $1000.

-A copy of your year-end tuition fees paid detailing for whom paid.  

For  your investments you have where you forwarded K-1 that had been received, that you had personally loaned to that entity $60,000 in 2009 whereas the K-1 showed a loss of $80,000. Tax law does not allow for taxpayers to deduct more than their tax basis, which is a cumulative function of the cumulative effect of prior financial transactions. Did you loan to the entity enough in prior years to be able to claim these losses (i.e., have you funded all previous losses claimed inception to date and still have sufficient loans/tax basis from 2008 and prior tax years to cover 2009 losses)? 

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

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

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. 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.

What Does a Christian CPA Interface with Corporate Tax Returns

By first agreeing to submit to authority we are to honor the laws of our land. This means obeying our federal and state governments, our President, our elected and nominated officials, our police and all others who stand in the position of authority. Jesus did not say to obey those in authority when we felt like it, when it benefited our interests, or when it was convenient, he stated that we should do it all the time.

Matthew 22:21
“Caesar’s,” they replied. Then he said to them, “Give to Caesar what is Caesar’s, and to God what is God’s.”

As a Christian CPA

As a Christian CPA my first responsibility is to God and my faith, then my family and friends, and then to my work. In fact I have had on my office door for almost a year now signage denoting this order both in terms of order but also in size the order of how I understand God’s truth and desire for our lives. Below Family on this list and in equal importance is school, work and friends for there are times when each should take priority depending upon age, importance and time issues. And then below these issues I believe our hobbies, interests, and volunteering should be placed.

Corporate Income Tax Returns

When preparing Corporate Income Tax Returns for clients I sign each return under penalties of perjury acknowledging that to the best of my belief that the returns are accurate as prepared. To me this means so much more than just the acknowledgement listed up also to the intent of the law as well as to the protection of my client. To this end I believe this makes me responsible to also be sensitive to many other issues such as:

Intent. Being sure that to the extent that I can that I ensure that everything on the return makes fiscal and business sense. For example, it would not be prudent to sell goods that your company manufactures for less than would be required to earn a just and fair profit as well as any required amounts to cover fixed operating expenses. For a business expense to be deductible it has to incurred in the normal course of running the business, a necessary and required expenditure, and the intent of the expense should be to make more money. Just as no business owner would want to incur expenses frivolously, so should a business owner evaluate monies spent to determine their validity. To read more visit www.hiscpa.com/business-expenses.html

Reasonableness. Expenses should be reasonable for too many reasons to list but to wit, I will highlight a few. First and foremost, business monies should be well protected and safeguarded to ensure that all monies are well spent and necessary expenditures. Helping clients find all of their available tax deductions is an important part of this process to ensure that all valid deductions are taken. To see how you might be leaving available deductions “on the table” visit www.hiscpa.com/maximizing-deductions.html

A Christian CPA is one who looks to help others by offering free initial consultations www.hiscpa.com/initial-meeting.html and indeed gives back to their community. To see how His CPA does this visit www.hiscpa.com/giving-back.html To see how God led John Dillard CPA to become a Christian CPA firm visit www.hiscpa.com/christian-CPA.html God is indeed good and looks after us and both our short term needs and desires and we are best in his will when we seek to walk boldly in our faith. If you would like to explore a Duluth Christian Men’s Group looking to take these principles to the streets you can read more at www.hiscpa.com/blog/2009/01/04/christian-business-mens-group/

Romans 1:1 “Paul, a servant of Christ Jesus, called to be an apostle and set apart for the gospel of God.”

Written by author John Dillard CPA of His CPA at 770 814 9304 and visit 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 God 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.

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.

Christian CPA Serving Corporate Income Taxes to the Metro Area

www.HisCPA.com

If you are a business owner run, do not walk, to the nearest CPA office. Owning of a business is something that you do not want to do alone or without the services of an experienced Certified Public Accountant. Being a new business will bring many critical issues, all of which may well thwart your efforts at having the advice of a CPA who specializes in business issues.

For the New Business Owner we have on our web-site tools which will greatly assist in getting your new business started.

Tax Effects Of Entity Choice
We can help you navigate through the myriad of tax law letting you make the best strategic and tax decisions in incorporating your business.   http://www.hiscpa.com/article6.html

New Corporation Forms and Registrations Checklist
Whether you are just incorporating or have been in business for years. This summary will enable you to quickly locate the forms and guidance you need to ensure your business maintains tax compliance. http://www.hiscpa.com/checklist.htm

Incorporating in Georgia
Starting your business off with the best tax elections for your business are amongst the most important business decisions you will ever reach. Discover how you can best set yourself up for business success as you consider this critical part of your business start-up.     http://www.hiscpa.com/incorporating-ga.html

Knowing which return to file is a good start to understand both your tax obligations and responsibilities. Below please find a recap of the different returns required to be filed by entity type:

Form 1120: C Corporations. A C Corporation Return is a four page return, not accounting attachments which requires a business to report its assets, liabilities, and equity as well as its results of operations (i.e., its profit and loss statement). Also on the form any applicable corporate income taxes are assessed, as well as the method of tax basis filing, whether cash or accrual.        http://www.hiscpa.com/business-tax-returns.html

Form 1120: S Corporations. An S Corporation Return is a four page return, not accounting attachments which requires a business to report its assets, liabilities, and equity as well as its results of operations (i.e., its profit and loss statement). Also as an attachment to the form a K-1 is attached indicating each partners respective share of the company’s operating results and tax preference items. The return also will indicate the  method of tax basis filing, whether cash or accrual. K-1’s, by tax law, have to be prepared based upon the ownership percentages of respective partners.      http://www.hiscpa.com/tax-basis.html

Form 1065: Partnership Returns. Partnership Returns are required to be filed for all Partnerships whether or not they are incorporated, LLP’s, as well as LLC’s who have opted to remain a partnership for tax purposes. A Partnership Return is a four page return, not accounting attachments which requires a business to report its assets, liabilities, and equity as well as its results of operations (i.e., its profit and loss statement). Also as an attachment to the form a K-1 is attached indicating each partners respective share of the company’s operating results and tax preference items. The return also will indicate the  method of tax basis filing, whether cash or accrual. K-1’s, by tax law, can be prepared based upon the ownership percentages of respective partners or any other allocation method by which the partners agree.    

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 succeeding.

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.

How to Avoid Top 10 Mistakes Taxpayers Make 

Knowing the pitfalls of many is often the best step to ensure that you do not fall prey to otherwise might be an easy to make common mistake. By staying away from these most often repeated mistakes you will avoid much of the pain which will otherwise will be created. The most frequently committed mistakes are:

1. Tax Planning. Many forget the value of a well thought out plan. Remember that failing to plan is analogous to planning to fail. Just as you would not set out on a journey to a distant city without a good road map first; so should we consider and carefully contemplate what lies ahead tax-wise. This will enable us to take the surprise out of our year-end taxes while also allowing us the ability to legally reduce our overall tax debt during the year while there are still great options to explore during the year. Just as a soldier can change the outcome of a war while it is still being fought so can proper planning do much to determine what will otherwise exist at year-end.

2. Deadlines. The whole of the tax code with its rules and filing deadlines are both date specific as to both filing and payment. Failure to abide by these can add substantially to your tax bill  with additional penalties and interest for late payment but also assessments for the late filing of returns. Being aware of these deadlines and the correct forms to be filed and monies to be paid is your first and best defense in ensuring peaceful co-existence with the IRS.

3. Never Underestimate the Value. For those you go it alone you are risking financial suicide of not only your personal taxes for the year but also the financial security of your family and business. For example, if you have a cold you will probably be best served with over the counter medicines. However if you are suffering from a more serious malady such as a heart attack, you had better get to a qualified physician fast. So is it similarly important to have a CPA to help you with all of your serious tax issues. Those who got it alone who have an audit, a business of their own, or have other family investing and financial planning needs are prone to disaster. It is always best to never underestimate the value of a good business CPA as their fees will frequently we substantially loss than those the IRS will determine and assess.

4. False Beliefs. Many taxpayers have the mistaken belief that an extension to file is an extension to pay. Since World War II, the Internal Revenue Service tax system has been a pay as you go system requiring taxpayers to file and pay by certain deadlines. Although the IRS does offer some extensions for the filing of returns, there is never the ability not to pay until the final extension lapses. Therefore it is critical to pay your taxes as monies are earned to avoid unnecessary assessments.

5. Reporting Stock Sales. Frequently taxpayers do not track or have the ability to re-create what they originally paid for a stock. This information is needed as tax law allows those selling of the stock to offset against the sales price against the original purchase price of a stock. This is critical for determining the related gain or loss on the stocks sale and reporting. It is prudent to continue to keep books, records, and statements for all of your outstanding stock so that at any time you can adequately report and be aware of a specific original stocks basis.

6. Ask the Box. In this day and time computers have done much to make our jobs easier and indeed to make us more efficient. However, just as speed dialing gave us the ability to dial wrong numbers faster so does tax software allow us to mathematically accurately process inaccurately prepared returns. Just as a tool in the hands of its master may do wonderful and skillful things, so should taxpayers be cautious in the use of tax software without adequate and proper knowledge of tax law. Often to the laymen, tax questions will appear to be dealing with one issue while in reality they are truly asking another. Failure to understand all of the questions asked and attendant nuances and complexities might well result in errors in both filings and payments.

7. Recordkeeping. Keeping adequate and well organized documents and records is an essential part of properly preparing your return. Foremost, absent good records you are most apt to miss deductions that otherwise you would be legally entitled to. Staying current on your accounting is an critical component of this process as often expenses may be missed if you wait until the end of the year to try to pull it all together. If you are a business owner being sure to reimburse any business expenses each and every month you might have paid personally, is the first best step to ensure that you track and record every legal deduction.

8. Mileage Logs. Whether you own your personal car and use it for business, whether you lease your business car, or if your business owns the car that you drive, you are required by tax law to have a by-day log to support business miles. Many fall prey to this miss-conception falsely believing that this requirement does not apply to them. It is most convenient to track business miles on ones calendar so that you are constantly reminded of not only where you have been but also the need for adequate reporting.

9. Ad Valorem taxes. Many taxpayers fail to keep in mind that Ad Valorem taxes on their personal vehicles, boats, trailers, motorcycles, and motor homes is an available tax deduction. One of the best first steps in the preparation of a given years taxes, is to first review the taxes of prior years to ensure both completeness of prior returns and that every legal deduction is being considered and assimilated.

10. K-1 Reporting. A K-1 is an attachment to a S Corporation, Partnership, LLC, or LLP tax return, which indicates each respective partners pro-rata portion of the business operating results. Although the tax information and reporting on a K-1 is very specific and exacting, they, by themselves, will not reveal all of the important tax information and knowledge needed for the proper preparation of a return. For example tax losses of an S Corporation cannot personally be deducted by a shareholder unless they have sufficient tax basis to do so. Similarly, it is possible to have a tax profit on a K-1 which might be legally be offset against prior year losses which were suspended and rolled forward. A keen awareness of tax law and the proper use of a good CPA will help alleviate much of this pain.

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.

Written by John Dillard CPA of His CPA PC (A Christian CPA Firm)