Accounting News and Notes

Atlanta Business Valuations: How to Prepare and Understand a Business Valuation

Whenever you are contemplating buying or selling a business, presently own your company, or in the midst of estate planning, the value of a business is a critical component in all planning, acquisitions, or marketing your business. The most essential component of preparing or understanding a business valuation is a requisite knowledge of how to prepare and review Financial Statements. By first understanding these you are now well poised to begin to detect and review the nuances of a company’s operations, which then will provide insight so that you might be able to best Manage the Heart Beat of your Business.

A learned analysis of the basics of the information a Balance Sheet and Profit and Loss are prepared and the information to be gleaned, we are well armed to understand and apply many factual pieces of information that are available when properly analyzed. Though the best indication of a business’s value is what a willing buyer desires to pay and a seller is willing to accept, these insights will help guide you to many techniques and variables which will give you insight into what a business’s true value might be. An on-going business with the value of its cash flow, goodwill, and customer lists will be generally worth far more than a business that is liquidating. The below variables and analysis are directed to a business for which is presently in business and plans to remain so.

Net Income Before Taxes

The first place one typically looks to see the value of a business is its net income. Absent a positive net income or other substantive mitigating factors, the absence of a positive net income will dramatically lessen both the cash flow of a business and accordingly its overall value. In looking at a business income there are several variables that are most often considered and it’s typically different from industry to industry with businesses in different market segments being valued dramatically different than that from others. Frequently net income is evaluated under both a multiplier of net income or a rate of return comparison, of which one evaluates the amount of investment to buy a business relative to its cash flow.

Compensation/Benefits for Owners and Key Personnel

What an owner takes out in salary as far as his overall compensation/W-2, distributions, and benefits typically is also included along with net income as being part of the discretionary income included in consideration. Typically these are counted similar to a company’s net income amount when calculating a business’s overall net worth and multiplied or included along with the rate of return considerations.

Interest Expense & Other Non-Cash Charges

Non-cash charges such as depreciation and amortization are also added back to the net income amounts when evaluating a business value. As these items are legitimate financial and tax deductions of the business, they do not negatively affect the cash flow of the business so these monies are added back to the net income totals/rate of return analysis accordingly.

Desired Rate of Return & ROI (Return on Investment)

Not only are rates of return important with making an investment in a mutual fund or other investment, they are also a critical component of measuring a company’s overall value when looking at making or maintaining an investment. One should always be cognizant of the rate of return of a business and the other financial opportunities available at any given time as one would be prudent to always best invest where ones money may be multiplied.

Typically in a growing profitable business a business owner’s rate of return is best served by investing in one’s own business as often a few dollars may be turned over many times in a year making an additional rate of return on each completed sales cycle. As with all things in life, however, a business owner should not ignore other Risk Management/Retirement issues so as to keep all of their goals in continual mind leading to a balanced debt load between business and personal issues.

Sales Revenue Growth & Expectations

Several industries utilize as their base model a multiplier of sales as a business valuation method. This is perhaps most often used when the overall profitability of a particular industry is more constant than not. Although due diligence should be properly applied in evaluation past, present, and anticipated sales; focusing on this model alone would not result in the fairest evaluation of a business’s worth because of net income, salary, benefits, and a review of the other assets of the business.

Technical Ability/Training Level of Staff

A business that has a well-trained and competent staff is worth much more than one who does not. Care should be given to carefully evaluate and review credentials of both critical and support staff as it takes a team effort to make a business successful. Evaluating and reviewing resumes, personnel records, accreditation’s, and degrees are all meaningful steps in this process. Special care should be given as to whether a particular business will need a hands own manager or if the present staff are capable of the autonomous running of the business.

State of the Economy/Understanding Market Dynamics and Their Business Impact

Though there are no guarantees regardless of how good an economy is as businesses fail in both an up and down economy. A business with a good product, being in the right niche, having the right people, and in the correct location has a much better chance of success than one who does not satisfy these critical business components. However any good business valuation would be foolhardy should it fail to appropriately take in the national and worldwide economy as with world shrinks as technology expands.

No longer are cities, counties, towns, states, and even countries isolated as the impact of a global economy impacts all. Rising gas prices for example have immediate impact on consumer discretionary and perhaps a much longer effect as the rising
cost of fuel/oil impacts the transportation and production cost causing a ripple effect throughout the entire economy. Additional and heightened scrutiny should be done at the local of a business studying the changing demographics of a business immediate climate. Discovering the age, income, population, its spending patterns, traffic flow, zoning, political environment are all critical components of valuing as well as opening any business.

Lease Agreements & Fixed Asset Review/Analysis

A detailed evaluation of a company’s fixed assets/lease agreements should be done by item to ensure that fixed assets and leased equipment are in good working condition and are fit for their intended purpose. An evaluation should also be done to review as to whether fixed assets will have to be replaced, when, and their approximate replacement value. Leases, both for rented space and equipment, should be carefully reviewed to ensure that one understands all of the variables of a business and their impending impact on a business’s value.

Intellectual Property and Non-Compete Agreements

Having all the best equipment, the latest technology, a well-trained and efficient staff, and in a good economy are all indicators that positively impact the overall value of a business. However, just as a business is able to place locks on its doors and incentives to its employees, a business also needs to do what it can to protect its business interests. A business invests thousands of dollars and often years in the specialized techniques and skill set critical to a business operation and its success. Accordingly it is wise to consider having key staff sign a non-compete agreement restricting their ability to steal your clients and employees.

Due care and consideration is of the utmost at this time to ensure that you have a well drafted agreement which will be legally enforceable as many states, Georgia included, will not enforce any of a non-compete if it is deemed to be too broad or restrictive in scope. As such you will want to be sure to retain the services of an attorney who is familiar with these statutes and particularly those of the states in which you business operates/the agreement would be enforced.

Also a business with intellectual property such as patents, copyrights, and other specialized procedures will want to be sure to both formally and legally protect their interests. Often this process might also result in an individual/company being asked to sign a non-disclosure agreement to protect the ideas and processes of a company.

By skill and wisdom to business techniques, processes, and overall business strategy we are well placed to help you make what may well be the largest financial decision you will ever reach.

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Sandy Springs & Tucker as a Faith Based CPA

Duluth/Suwanee/Lawrenceville  CPA:  IRS Just Announced the 2013 Mileage Rate

The IRS Just Announced the 2013 Mileage Rate as 56.5 cents per mile. This is up from the prior year mileage rate of 55.5 cents per mile. Please keep in mind that tax law requires all taxpayers who use an auto for business use to keep a by day mileage log to support all business miles.

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 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!

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

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

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Sandy Springs & Tucker as a Faith Based CPA

Atlanta CPA: What Not to Do When Addressing IRS Representation Tax Issues

Top Five (5) Things To Avoid When the IRS Audit Notice Arrives

If you have just received a tax notice these tax tips will do much to ensure that you stay out of trouble with the IRS as well as mitigate it, once it occurs and will be one you will want to refer to again and again. These are the most common mistakes business owners and taxpayers make resulting in much extra stress and additional penalties and interest that can be legally avoided.

1. Not Use a CPA to prepare your original business return. Doing your return on your own, with only a box to ask for answers to your most strategic tax questions is a recipe for financial calamity. Not knowing when to be an S Corporation, LLC, LLP, C Corporation or will do much to increase your tax bill from the offset. Furthermore not knowing what a qualified plan is, much less which one is best for you and your business will do much to impair your ability to limit both your current tax bill and to plan for your long-term retirement.

2. Not retain a CPA to represent you before the IRS. If you have already done your personal or business return and now have received an IRS notice and are thinking you can represent yourself, you are about to make a bad situation worse. Not only did you do your own return and potentially file the return with many errors in tow, now you are thinking about representing yourself before the IRS and an IRS agent who is well-trained and versed in an area you are not; tax law. If doing your own return is akin to not taking care of yourself, resulting in your getting sick. Then handling your own surgery would be similar to performing your own surgery to help you get well.

3. Believe that a Tax Preparation or Bookkeeping Service has the same credentials. To become a CPA today in most states you need a five year BBA in Accounting. To pass a four part exam and to have two years of experience of working under the tutelage of a CPA as their direct supervisor. To remain a CPA most states also require both Peer Review and ongoing continuing education or CPA. As a CPA of over three decades of experience, I have worked in the industry for over thirty years, 10,950 days, or 262,800 hours. On the other hand to be a tax preparer requires only a business license only, and they might have only just started.

4. Go to the IRS Audit Meeting. It is best when you are quiet. You are not a CPA, you do not know tax law, your opinion, like mine, does not matter. Only Tax Law Matters and Your CPA Knows Tax Law. Work only with a CPA who has a proven and documentable track record of success in handling tax representation issues, penalty abatement and Offers in Compromise. Just as Jesus is our Intercessor before God so will should we want a CPA as an intercessor with the Internal Revenue Service.

5. CPA: Never Underestimate the Value. A CPA is an Tax Advocate who can help you:

-Legally Avoid Taxes by Paying Your Lowest Legal Possible Tax

-Make Timely Tax Elections

-Make Proper Tax Choices

-File Corporate and Personal Income Tax Returns on a Timely Basis

-Keep you Abreast of Tax Law

-Stay out of Trouble

-Plan for Retirement

-Serve as a Part-Time Virtual CFO/Controller

To read more about John Dillard CPA and his CPA practice, business consulting and IRS representation visit http://www.hiscpa.com/

www.HisCPA.com  A Christian CPA Firm in Duluth/Lawrenceville/Johns Creek/Lawrenceville Proudly Offering Corporate and Personal Income Tax Returns, Offer in Compromise, Tax Advocacy, Tax Mitigation and Tax Compliance, Back Taxes, IRS Representation, IRS Appeals, IRS Collections, IRS Installment Plans & IRS Wage Levies

Duluth/Gwinnett CPA Determining the Amount of Your Offer in Compromise for Gwinnett/Atlanta Taxpayers

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 Duluth/Gwinnett CPA to help with your Gwinnett/Atlanta 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. Call a CPA today who is well versed with Tax Representation Issues and Has a Proven Track Record of IRS Representation Success with both an Offer in Compromise & Back Taxes.

At His CPA PC we have a past history of IRS Representation success covering:

• Back Taxes/Returns for Personal & Business Income Taxes
• IRS Representation
• IRS Appeals
• Collection Appeal
• IRS Installment Plans
• Delinquent Returns
• Late Payment/Filing of Payroll Tax Returns
• Wage Levies
• Tax Advocacy
• Tax Mitigation/Elimination

Atlanta CPA: Seeking Penalty Abatement from the IRS

In Seeking Penalty Abatement from the IRS the first item will be needed is to sign an power of attorney allowing a CPA to talk to the IRS on your behalf. The foremost item needed will be to have you prepare a detailed affidavit detailing the items that created the late filing and payment as well as what action steps you have done to ensure that you stay compliant on all tax issues in the future. It will be essential to get a copy of all IRS tax notices that were paid late being sure to recap them by Form Number, Period Covered, Initial Amount Due, Payments Against Amounts Due, Present Amounts Due.

When you get a good rough draft of your IRS plea to request penalty abatement, please e mail it to me so that I might offer critiques. We will most likely need to work on the letter a bit to get it in a workable presentable format to send it to the IRS. Feel free to call me might you have any questions.

“The U.S. tax system is one where it’s the taxpayers responsibility to correctly fill out their taxes to ensure that they pay only their lowest legal possible tax. As an Atlanta CPA for decades this is perhaps the most true when dealing with IRS Tax Representation Issues. Be sure you work with a CPA who is well experienced before you begin to address your Back Taxes, Penalty Abatement or Offer in Compromise.” — Atlanta CPA, John Dillard CPA

On your letter you will want to address all the types of taxes owed by specific reference listing the years as well detailing the circumstances to both.

You will want to spend a fair amount of time detailing what you have done to correct this issues covering:

• Hiring a CPA for all of your income tax filings and to get all of your back taxes current.

• Hiring a payroll service to ensure that all of your future payroll taxes as well as federal and state withholdings will be current in both their filings and their payments.

In determining if your IRS  late payment and late filing penalties can be abated the IRS will consider:

Failure to timely and failure to pay payroll and income tax returns when due, absent reasonable cause, can give rise to tax penalties being assessed by the IRS and the state of Georgia. Whether an organization qualifies for the reasonable cause exception to the penalty will be determined on a case-by-case basis taking into account all relevant facts and circumstances.

The regulations provide that a request for abatement of penalties based on reasonable cause must be made in the form of a written statement, containing a declaration by the appropriate person that the statement is made under penalties of perjury, setting forth all the facts alleged as reasonable cause. When requesting abatement of penalties for reasonable cause, your statement should include supporting documentation and address the following items:

Explain what prevented the organization from complying with the law, including:

o Detailed statement detailing how the organization was not neglectful or careless, but exercised ordinary business care and prudence and what facts and circumstances can you state to prove this.

o Specific action steps you have taken to prevent the same situation from occurring in the future including the hiring of a CPA, a payroll service and educating yourself on IRS and Georgia tax law surrounding the timely filing and payment of all payroll and income taxes due.

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Dunwoody, Sandy Springs & Tucker as an Award Winning
CPA

Quotable Quotes…From Atlanta CPA, John Dillard CPA

“The American Entrepreneur is one who uses all of the tools in their toolbox to maximize their profits as much as they can and to pay as low of a tax bill as legally possible using every innovative tool at their disposal” — John Dillard CPA

“The U.S. tax system is one where it’s the taxpayers responsibility to correctly fill out their taxes to ensure that they pay only their lowest legal possible tax. As an Atlanta CPA for decades this is perhaps the most true when dealing with IRS Tax Representation Issues. Be sure you work with a CPA who is well experienced before you begin to address your Back Taxes, Penalty Abatement or Offer in Compromise.”  — Atlanta CPA, John Dillard CPA

“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.htm

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Dunwoody, Sandy Springs & Tucker as an Award Winning CPA

Duluth/Gwinnett CPA: Advising Atlanta Taxpayers on Determining Your Personal Income

“Understanding how your Adjusted Gross Income (AGI) is determined and what yours is will be essential to managing your family’s income and spending levels for without a keen grasp, there is both nothing to manage and to benchmark your cash outlays against.”  — Atlanta CPA, John Dillard CPA  

The below is a sample inquiry we might receive from a client:

I received a letter from the IRS regarding our 2011 personal income tax return. I have not yet examined the return I submitted, but thought I should pass the notice to along to you ASAP. From what I can discern, the IRS is indicating that we didn’t report earnings from our accounts with our brokerage house. Your review and thoughts would be appreciated. Thanks.

Below is my response:

I printed out and reviewed the IRS notice in detail relative to your filed return and attached documentation.

Per the attached notes in my file the brokerage house statement forwarded was an retirement account for which financials transactions within the account would not be taxable. Please review/advise.

If your brokerage house account is an after tax account (not in an retirement account) then the monies will be taxable but we will be able to offset by stock the amount you paid for each stock, which might well produce losses on the sales of some stocks.

If you conclude your brokerage house is an after tax account please forward for each stock sold the original purchase price and purchase date and I will prepare an amended return accordingly.

I anticipate after we do the above the amount assessed by the IRS will wind up being substantially higher than the final amount due.

The calculation of taxpayer’s gross income is essentially a total of all of the taxable income received during the tax year–typically the twelve months ending December 31st. To learn more about determining your Adjusted Gross Income for your personal income tax return see http://www.hiscpa.com/agi.html

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Dunwoody, Sandy Springs & Tucker as an Award Winning CPA

Want a Free Initial Consultation About Your IRS Tax Representation/Audit Issues? Looking to obtain penalty abatement from the IRS, set up a payment plan for file old back tax returns with the IRS? We work closely with you to help resolve:

• Tax Garnishment

• Trust Fund Penalties

• Offer in Compromise

• 100% Penalty

• Statute of Limitations

• IRS Tax Issues/Tax Problems

• IRS Tax Penalties

• IRS Tax Levies

• Tax Liens

Call us today for a free initial consultation…all you have to do is show up and the initial consult is free. Call us today to be sure that all of your rights are protected and that you pay only your lowest legal possible tax allowing us to help with:

• Collection Appeal

• IRS Installment Plans

• Delinquent Returns

• Late Payment/Filing of Payroll Tax Returns

• Wage Levies

•Tax Advocacy

• Back Taxes/Returns for Personal & Business Income Taxes

• IRS Representation

• IRS Appeals

To Read more about our IRS Tax Representation Services see http://www.hiscpa.com/irs-representation.html We Help You to Ensure that only your lowest legal possible tax is reflected by:

• Determination of Filing Status

• Review of Past Filed Returns

• Amending Tax Returns

• Filing of Past Returns

• Evaluating & Determining Tax Elections

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Grayson, Alpharetta, Roswell, Dunwoody, Sandy Springs & Tucker as an Award Winning CPA

Gwinnett CPA…Providing Bookkeeping Solutions to Gwinnett/Atlanta Business Owners

At His CPA PC we work hard to make sure your internal books and records accurately depict your company’s financial operations as this is essential to understanding exactly what your company’s financial position including short and long term cash management, turnover of accounts receivable, ageing of accounts receivable is at any given time.

This allows you to make better informed financial decisions about your company’s present and future financial goals, pricing and profit maximization.

When we prepare your business taxes we work hard to make sure you assets, liabilities, equity, revenue and expenses are properly classified and recorded including the tracking of your bank accounts, bank reconciliations, fixed assets, depreciation expense and its recording, amortization and recording of debt liquidation payments and interest expense.

These are just a few of the items we can help you with by offering financial statement tips, bookkeeping guidance and strategic financial insight.

Call us today to receive a free initial consultation. All you have to do is show up.

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Hamilton Mill, Cheatu Elan, Winder, Gainesville, Hart County, Dunwoody, Grayson, Alpharetta, Roswell, Dunwoody, Sandy Springs & Tucker as an Award Winning CPA

As a Gwinnett CPA & Virtual CFO for Gwinnett Business Owners this week at His CPA PC we:

-Assisted with the due diligence for a business purchase advising the prospective buyer on what financial information would be prudent for them to review, to get a non-compete and contract agreement from the present owner, to spend time in the business working for free so as to gain a first-hand look at the strengths of the present business operations and how the new owner might run it if they were to purchase it. Advised prospective buyer to perform a detailed analysis of the customer base, competency of present staff, review of the old owner’s business plan and the drafting of a new one for both clarity and to seek bank financing.

-Advised a minority shareholder client on the how Georgia LLC’s and S Corporations are taxed and the requirements of maintain an S Corporation including that all shareholders have to be U.S. citizens or resident aliens, have a calendar year, have one class of stock, and have less than 100 shareholders. Also advised that S Corporation owners have to receive shareholder distributions based upon their pro rata portion of stock ownership whereas LLC owners may issue member distributions based upon any formula they determine.

-Assisted a client in understanding the process of first filing of their old tax returns and then working to find a more permanent solution to the amount of outstanding debt by either an IRS Installment Agreement, Offer in Compromise or Paying the Taxes and Interest in Full while requesting penalty abatement.

-Meeting with a client who has received and letter from the IRS advising him that he is going to be audited for one of the years that he had self prepared the return advising him we would have him sign a power of attorney and that we would represent him during the IRS audit process.

At His CPA PC, John Dillard CPA seeks to be more than just a CPA firm. Find out what an award winning Christian CPA can do for you and your business.

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Suwanee, Lawrenceville, Snellville, Lilburn, Duluth, Norcross, Peachtree Corners, Atlanta, Gwinnett, Fulton, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Cumming, Hamilton Mill, Cheatu Elan, Winder, Gainesville, Hart County, Dunwoody, Grayson, Alpharetta, Roswell, Dunwoody, Sandy Springs & Tucker as an Award Winning CPA