Accounting News and Notes

Family Business Radio Presents Alpharetta CPA Firm…Where Atlanta Small Business Are Uplifted

We are pleased to be a part of the BusinessRadioX family and even more excited to be one of the showcase family-owned businesses.

Our mission is to create community focused entirely on family-owned businesses.  Our guests will include family-business owners just like you who will give you first-hand insight and share their stories of how they overcame obstacles, maintained strong-family bonds and built their business and their legacy.

In addition, we know first-hand that the right trusted advisor and the addition of non-family member executives at key stages of your family-owned business can make all the difference in ensuring that both your family and your family-business thrive.   So our show will include expert advisors and interviews with key non-family executives who have filled vital roles and contributed to the overall success of family businesses.

And we look forward to your input—let us know what topic is most pressing on your mind.   This is your community too.  Thanks for being part of it.

You can get Family Business Planning, Strategic Advice and Tax Ideas on Atlanta CPA John Dillard’s Podcast at http://familybusinessradio.businessradiox.com/116

 Meredith C. Moore, LUTCF, CLTC
10896-A8 Crabapple Rd
Roswell, GA 30075
Office: (770) 587-0281
Cell: (404) 697-5289
Fax: (770) 587-0283
http://www.moorewealthmgmt.com
moore@moorewealthmgmt.com 

“Coordinating the financial affairs for a select group in Greater Atlanta”

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

His CPA PC…A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits

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

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

Award Winning Alpharetta/Atlanta CPA Asks Does Your CPA Think “Outside the Box?” 

Ensuring That You Pay Your Lowest Legal Possible Tax. As a Atlanta Christian CPA I believe I have several key responsibilities including: 

1. Keeping Your Tax Bill as Low as Legally Possible.

2. Planning for Your Financial Future/Retirement.

3.Think Outside the Box.

4. Find Missed Tax Deductions.

5. Practice the Golden Rule.

6. Offer Excellence in Service at a Mid-Range Price.

7. Be Emphatic.

8. Be Fast, Accurate and Professional.

9. Be Bold in My Faith in Jesus Christ.

10. Good Returns: FAST 

Living out our faith as Believers requires all of us who follow and accept Jesus as our Savior to lean on Him during all times, boldly seek His will for our lives and to live expectantly as we seek to live in love. 

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

His CPA PC…A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits 

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

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

Atlanta CPA Teaches Addressing IRS Notices for Atlanta Taxpayers 

Below is a sample of a notice I might receive from a taxpayer regarding their receipt of an IRS Tax notice detailing their concerns and questions. Addressing IRS notices and payroll tax issues are the bane for many taxpayers and the hiring of a competent payroll service is your best bet to ensure that you can work on your business rather than getting mired down in burdensome administrative details. 

I have a question about the attached IRS penalty letter I received today. It says that there is an Informational Return for 2008 that was not filed in a timely manner. I don’t have a clue what this could be about or if it’s some kind of mistake. When you amended our 2008 and 2007  S Corp. returns, was there any informational return that need to be sent also, such as a W-2/W-3 or something else? 

If none was required with the amended return, should I contact who did the original 2008 return?  And what other informational returns could be involved, other than a W-2/W-3 for our salary?  I never got a copy of the W-3 from our prior accountant.  All he gave me was a W-2 to file with our personal return.  I think he also sent out all the 1099s that year, so could the 1096 form also be the late informational return? Please tell me anything you can about what would cause this problem. 

Payroll is the largest and most burdensome administrative responsibility for a business owner. Whether you have one employee or a thousand, both the IRS and your state has a myriad of payroll reports and deadlines for which you are required to complete. Unfortunately there is not a one-stop shop to pay and report all of the varying deadlines and taxes. However, there is a solution that makes the reporting of payroll dramatically more seamless than if you strive to go it on your own.

The easy part of preparing a payroll is the actual paycheck itself, but that is where the simplicity stops and the difficulty begins as there are a dramatic list of reports and varying deadlines to meet. To this end I have recapped below some of the reports and their significance. Here is the letter of response I forwarded:

The letter you forwarded indicates that it is for a Civil Penalty which typically indicates payroll taxes returns. Might I suggest you first review all of your 2008 payroll tax returns to see if they were all timely filed and paid. As it is in your best interest to always to hire an Atlanta Payroll Service to handle all of your payroll needs as you could then forward this notice for their review and for them to both resolve and to pay if indeed they caused the penalty. To discover about payroll tax reports and their tax deadlines visit http://www.hiscpa.com/payroll.html

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.

Christian CPA Helps Solve Tax Problems, Resolution and Advocacy

CPA Serving Atlanta GA & Beyond

Working through tax problems is not as easy as they make it sound on television ads. You cannot just meet with an IRS representative, file an Offer in Compromise or get on an installment plan and all will be better. The last national acceptance rate that I saw published the rate of successful completion of Offers in Compromise to be approximately 22%; this means that you would have a 78% chance of failure. As a Body of Believers we are all called to submit to authority and to that end we should all pay our just and fair taxes. Our tax system is one of voluntary compliance and to this end we should and need to stay true. But there are many options when dealing with tax issues and there is not a one size fits all mentality that should be applied to resolving tax issues. These ideas will help you begin to understand what is and what is not in your best interest in dealing with your IRS or state tax problems.

Tax Liens, Levy, Levies and Garnishments. The Department of Treasury/Internal Revenue Service has many tools in its tool box to encourage you to pay promptly. The ultimate in all professional representations should be to avoid as many of these as possible with the goal of preventing an undue headaches, which may occur when Tax Liens, Levy, Levies and Garnishments occur. All of these are effective means the IRS has at its disposal to encourage and indeed force collection of open and due tax monies. It is most wise to deal proactively with back tax  and payment issues to ensure that enforced collections are not necessary as they do much to limit your possible options for successful tax resolution.

Tax Relief. Tax Solutions. Tax Help. Each and every situation is different. Like snowflakes, there are no two tax situations that are the same. Though you may feel you need a tax attorney, and your might if going into tax court, most all tax issues may be resolved well before the collection process goes “legal”. Frequently taxpayers with several years worth of tax returns to both file and pay are well served by a CPA who is well versed in tax preparation issues and the IRS collection process as well. The goal of all parties should be for resolution of issues “for once and for all” and to get back into the system as a “compliant taxpayer” by both filing and paying all future taxes on a timely basis.

Tax Options & Alternatives. Tax representatives who offer to “settle for pennies on the dollar” may not always have your best interests at heart, as there should not a one stop way to fix all tax issues. For example, many who originally feel they are best suited for an Offer in Compromise or an Installment Agreement soon learn that these are not in their best interests. Many who initially are set out up on a payment plan to the IRS soon thereafter discover that the penalties and interest are growing more rapidly than the amount of their payments, thus continuing their downward financial spiral. Similarly, Offers in Compromise are often submitted for taxpayers for who are not good candidates for the Offer Process itself. Care should be taken on the front end to verify that all candidates for an Offer in Compromise are well-suited and are well-qualified candidates for this process.

Taxpayer Advocate. Find a CPA who looks after you and to whom you believe has your best interests at heart. Check references, meet face-to-face, gain a good understanding of the CPA’s depth of knowledge and understanding of not only what created the tax issues but also your ability to communicate with him/her. Also be sure that your CPA, does not have a “program” and an “up-front fee”. Payment as services are rendered, such as one would do with an attorney or a physician is your best bet to stay in tune with all actions done on your behalf.

Working with the IRS. Working with the IRS, rather than against it, is your best option to ensure that both your rights as a taxpayer and U.S. citizen are protected and that you solely pay the taxes, which are due, using every option that a CPA has available. The collection process and representation issues take time. To learn more visit these fine articles:

Solving IRS Tax Issues
Don’t fight the IRS but work with them to resolve your tax problems. Discover a myriad of legal ways the IRS is eager and willing to work with you to resolve any unpaid debts, penalties, and interest.

Paying Your Taxes – Withholding and Extensions
Paying your taxes made easy. This section will enable you to quickly grasp the general guidelines of tax law requiring that you pay taxes as you earn money. As well, extensions and their uses and limitations are disclosed and discovered.

How to Avoid an IRS Audit
Discover simple steps that you can do to help prevent an IRS audit. Though the tax code is at times very difficult to understand and comply, these basic simple steps will help you avoid an IRS audit.

Solving IRS Tax Problems: Submitting an Offer in Compromise
When all else fails and if you qualify, the IRS and Georgia both have a program which will enable you to work to solve the severest tax problems.

Written by John Dillard CPA of His CPA at 770 814 9304 and visit www.hiscpa.com (an 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

These simple guidelines will help you determine your filing status and give you a leg up on understanding the nuances of what tax filing status you can legally claim on your personal return. There is much confusion over what is allowable in making these determinations and the below overview will do much to erase many of the existing mystiques surrounding the proper status and therefore the correct filing of your personal return.

Single - Only taxpayers who are single on the last day of a tax year may claim single status. It does not matter what your marital status is on the first 364 days of the year but only what is your status on the last day of the tax year/December 31st, which is the key determining factor. A taxpayer who is married on the last day of a tax year cannot claim single status regardless of whether they want to file a return without their spouse.

Head of Household - To qualify as filing as head of household a taxpayer generally must have a dependent child who lives with them throughout the year. However a single taxpayer who is allowed by a divorce decree to claim a child as a dependent, but the child does not predominantly live with them, does not qualify for Head of Household Status. Conversely, a child who predominantly lives with a parent for most of the year, can still claim Head of Household Status even if the decree specifies the other parent to be eligible for the dependency exemption in a given year. Generally speaking, married individuals with dependents who do not live with their spouses for the second half will also qualify for Head of Household status. The Head of Household tax rate is the second lowest behind the tax rates of those who are married and filing a joint return.

Married Filing Jointly & Married Filing a Separate Return- Taxpayers who are married on the last day of the year must file as either Married Filing a Joint Return, Married Filing Separately, or Head of Household (see above). Generally speaking it us usually most advantageous to file a joint return if one can, as most often the aggregate tax bill will be lessened and the attendant reporting less due to the filing of one return vs. two. You will want to keep in mind that the Married filing a joint return is the lowest of the overall tax rates/brackets and that Married Filing Separately is the most expensive/highest tax brackets.

Please be reminded these are general guidelines only and that you should work closely with your CPA to determine which filing status you are able to claim to ensure you fully understand and qualify for the status you will be claiming.

What will the impact of this new law be? Probably a lot. There was some media attention early on about this sweeping bill that President Bush signed last month.  But since then the media has not really focused on it much.  What was the intent of the legislation? Congress had big plans with the stated purpose of not a little thing; only stabilize the residential housing slump, fix the credit markets and help struggling homeowners keep their homes. The law authorizes the Feds to bolster Fannie Mae and Freddie Mac if they need it, juices up FHA loans and it creates a large tax credit for first time homebuyers.  For funding purposes the law also increases the national debt level $800 billion to $10.6 trillion. 

In order to understand the new law’s impact one needs to know a bit of history.   Back in the 60’s the Feds established Fannie Mae and Freddie Mac to help start the secondary mortgage market that in theory makes mortgage rates lower.  Later these agencies were privatized and sold and are now publicly traded companies.  When one considers that there are about $10 trillion in residential mortgages outstanding and that Fannie and Freddie together hold about half of that amount it is easy to understand why this is a big deal.    First it certainly makes government bigger and grants more government control over the housing finance sector.  It is an increase of government activity and control for sure.  But whether or not one likes more government or less it looks like the new law should start to have immediate impact at least in the short term.      

The National Association of Home Builders say on their web site that the first time home buyer tax credit of up to $7,500 will have a significant positive, immediate effect on the housing market.  The New York Times said recently quoting The National Association of Realtors there were some 2.5 million first time homebuyers in 2007.  Apparently most of them would have qualified for the tax break.  How many are there in 2008?  God only knows.  Still the tax credit is a potent incentive. The government’s promise to support Fannie and Freddie certainly adds strength at least in the short term even if one believes that fundamentally it is the wrong way in principal.

 So did Congress and the President do a good thing by creating the law?  I say a conditional maybe.  In the short run it will probably help and accomplish some or much of its intended purposes.  We may even start to see effect before the election.  But all this focus on Fannie and Freddie and the real estate slump gave me pause to reflect and ask what are we really doing with this debt driven housing market?  In principal is it better to have more mortgages on housing or is it better for people to pay their mortgages off and be debt free?  Should the government bail out private companies like Fannie and Freddie?  In the long run do we need increased FHA loan programs, which carry a government guarantee?  In principal I think the answer is no.  When people keep looking to the government to help them it’s not a good thing.  Once you start it is very hard to stop.  We simply need to remind ourselves that we need to look to God to help us, not government. He is an ever-present help in times of trouble!  LORD help us!          

Written by Scott Singletary, who can be reached at 770.310.5019 .