Accounting News and Notes

Atlanta CPA: Dealing with the IRS

Straight Dealings with the IRS is Your Best Opportunity to Audit Success to Achieving a Successful IRS Representation Experience

Working with the IRS in an honest open and straightforward basis is your best bet to ensure that your audit experience, to the extent that it can be, is an success. Frequently I see clients who are audited because they have a business and attempt to prepare their returns on their own. Tax law should never be attempted to be understood or appropriately applied by anyone other than a CPA who is well experienced and seasoned in such matters. Just as Believers we have an Intercessor to talk to God on our behalf so should clients retain a CPA to work to ensure that they pay only their lowest legal possible tax.

Internal Revenue Service 

Dear Sir/Madam,

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to address their tax issues.  

I am willing/eager to supply you with any information that you might need in order to process the audit. I have enclosed the information that the client has forwarded for you to process the audit.

Since I have assumed the role as their financial adviser, I have consulted with them, and in good faith have pulled together all of the information that you have requested.

I appreciate your attention to this matter and look forward to working with you to close their file.

Sincerely,

John C. Dillard, CPA, PC, Partner in Charge

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, Sandy Springs & Tucker as a Faith Based CPA

www.HisCPA.com A Christian CPA Firm in Duluth GA 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: Tax Preparation, Financial Statements & Strategic Planning for Gwinnett/Atlanta Medical Professionals

At His CPA PC we work hard to help Gwinnett and Atlanta Medical Professionals with their Accounting, Bookkeeping and Tax needs. Put our CPA to work to make sure you select the right entity. Medical practices that are an LLC (Limited Liability Company) for active employee owners/mangers of a sole owner medical practice should consider converting to an S Corporation for tax purposes. An S Corporation will pay less overall taxes during the filing of their business and personal income tax returns than that of an LLC remaining an LLC for tax purposes. For physicians/doctors in a multi-practice partnership an LLP (Limited Liability Partnership) is most frequently encouraged to help mitigate professional liability malpractice from your other partners. Prudence would always dictate meeting with your attorney and your CPA before making any changes to your business structure and business set-up. Be sure you set up your bookkeeping for your Gwinnett/Atlanta Medical Practice to accurately reflect your business operating results and your gross margin. In setting this up it is essential to have set up your accounting package such as QuickBooks so as to enable the efficient summarizing and recording of your financial data by well considering the necessary chart of accounts to well reflect your business operating results.

As a CPA for Gwinnett & Atlanta Medical Community we are well poised for to assist:

- Anesthesiologist.

-Cardiologist & Vascular Surgeons.

-Emergency Medicine, Internist, General Practitioners and Pediatricians.

-Endocrinologist, Family Practitioner and Gastroenterologist.

-Geriatric Medicine, Hematologist and Oncology.

-Surgeons and Neurologist.

-OB/GYN, Ophthalmologist Gastrometrist.

-Orthopedic Surgeons, Pathologist and Pediatricians.

-Dermatologist, Physiatrist and Pulmonologist.

-Radiologist and Rheumatologist.

-Dentists, Physical Therapist and Chiropractors.

-M.D.’s, D.O.’s & P.A.’s.

We listen attentively to our Gwinnett & Metro Atlanta clients assisting them with:

-Preparation of Business & Personal Income Tax Returns.

-Financial Statements, Bookkeeping, QuickBooks Set-Up & Payroll Administration.

-IRS/Tax Representation, IRS Penalty Abatement, Back Taxes & Offer in Compromise.

-Tax Compliance & Review/Amending Prior Returns.

-Tax Planning, Tax Mitigation & Tax Strategies.

-Business Set-up, Entity Selection, Filing for Your S Corporation Election & Converting Your LLC to an S Corporation.

-Virtual CFO/Controller, Strategic Planning, Business Consulting & Mergers and Acquisitions.

Call us today for a free initial consultation.

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, Dunwoody, Alpharetta, Dunwoody, Sandy Springs and Tucker as a Faith Based CPA Firm

Duluth/Gwinnett CPA: How Do You Respond to Others When You Are Not Treated Fairly?

How have you responded in the past when someone did not treat you fairly or was just downright rude to you? I challenge you to read Luke 6:27-36 and Romans 12:9-21 this week. Both passages are great reminders of how to love people and represent Christ’s love for us. The truth is…some people are difficult to love sometimes.

However, we must remember that we were undeserving of God’s love and the grace He showed each of us on the cross. Had He not been kind and merciful to us, we would not be here today. We see it often on the streets…we are out there helping and serving and sometimes are met with bad attitudes and disrespect. We press on though. We keep showing love, even when we may not feel like it sometimes.

We may never see the fruit of our love and kindness but all that matters is that they see Christ in us and our actions. His love never fails! I pray that God brings difficult people to love in your path this week and that when it happens, you draw your strength from the cross and love them even when they do not deserve it! (Don’t get frustrated at us when it happens this week- but see it as an opportunity to be made more into His image!!!!!)

Thank you for your continued prayers for us at 7 Bridges to Recovery. We are grateful for your support and know that we could not be here without you. Come and visit us sometime! There is always a place for you here!!!!! Lord willing, we will have another update next week. Until then, know you are blessed and highly favored!

GO JESUS GO JESUS GO! LOVE, 7
www.7bridgestorecovery.org

Presented here by 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

This week at His CPA PC…We Provided Bookkeeping Guidance to Gwinnett Business/Atlanta Owners by…

Helping them with their bank reconciliations

Advised a business owner to do their sales tax reports themselves rather than the additional expense of having an outside firm do it.

Helped guided a Gwinnett business owner to use a payroll service so that they will keep their payroll processing fees as low as possible as well as to be sure that all of their payroll reports and payments are timely filed.

Helped Gwinnett Business owner in understanding how their internal accrual books timing differences reconcile to their cash based tax return.

Helped a C Corporation convert to an S Corporation for tax purposes.

Helped an Single member LLC convert to an S Corporation for tax purposes.

Completed several corporate/business income tax returns.

Helped Atlanta business owners in properly classifying and compiling their business receipts into their company’s balance sheet and profit and loss.

Guided two rental property owners in setting up a separate LLC so that their family will have legal liability protection from any potential legal risk/exposure.

As an Atlanta CPA for decades I have learned that it is frequently the questions that you do not know to ask that are the most important. Ask His CPA today what a Faith Based CPA firm can do for you and your business.

Christian CPA: The Business Valuation Series

How to Prepare and Understand a Business Valuation

This is the third of a three part series to help you understand and begin to address several of the basic issues facing a the proposed purchase of a business. This recap will be that you want to refer to often to ensure that before you buy a business that you are both well informed and well-armed.

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. Be sure you contact us today for a free initial CPA consultation. Also working with a good business broker as your buyers representative and a good attorney will do much to make efficient use of your time and to ensure a smoother buying experience.

How His CPA Became a Christian CPA Firm

http://www.youtube.com/watch?v=mdh7DaSwnX0

Atlanta CPA on IRS Installment Plans

http://www.youtube.com/watch?v=nvz4y1Ld4vE

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

Duluth, Johns Creek, Lawrenceville CPA: Completing IRS Form W-4 and Worksheets and Georgia Form W-4

Determining Marital Status

People who qualify under the claim of married generally have a lower withholding rate. If you are not married then you must take your withholding at the increased single rate.

You should mark single in the box if any of the following apply to you:

 If you are single, divorced, or separated from your partner by order of court and law

 If you are married but your spouse is not an American citizen

 If you are married and you chose for your spouse not to be considered a legal U.S. Citizen but instead a resident alien for tax reasons.

You should mark married in the W-4 if any of the following apply to you:

 If you and your spouse are both legal U.S. Citizens. If your spouse dies during the current tax year you are still considered married for that year.

 Either you or your spouse is considered a resident alien. You can find the details on resident aliens with Publication 519.

If you are married but still withholding at a single rate. If you and your spouse, both working, cannot meet the requirements of a married withholding tax then you can file a “married, but withhold at a single rate” to fulfill the necessary payments for married withholding.

Determining Withholding Allowances

Allowances run in relation to your amount withholding. The more allowances you claim the less income tax you have to withhold, or your employer has to withhold. Your allowances depend generally on the following:

 How many exemptions you can take on your tax return

 Whether you have income from more than one job

 What deductions, adjustments to income, itemizations, investments, business ownership, and credits for which you are tax eligible

 Whether you will file as head of the household

If you are married, it depends on whether your spouse is going to work or claim allowances on their own Form W-4 to the IRS and the G-4 to the State of Georgia.

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

Atlanta CPA Asks: Is Your Business Going To Survive This Economy?

Is Your Business Going To Survive This Economy? Not an easy question for any of us to answer especially in this economy. The below is a sample letter we might receive from a client seeking Business Survival Skills in a Down Economy.

Good evening John, Hope you are doing well! I wanted to ask you something. Do you do have a service that assess business solubility? The company that I work for is going through some rough financial times. We have sales coming in but the economy has taken its toll and I feel like we are not in a place of sound business. We have new plans to keep up with the economy, but I feel like we need to restructure and run anew, but my partner thinks otherwise. Last year our sales was $200K and currently our liabilities (Credit cards, line of credit and A/P) is about $70K. Our monthly overhead is about $12K and could be cut down to maybe $10K. We don’t have any other equipment assets outside of our computers.  I feel like that anymore profit would go towards bad debt and in my eye it is a deep pit. My partner feels like we can get out of it and this economy it would be a miracle. Need your thoughts on this.

Below is my response:

We frequently serve as a Virtual CFO for many of our clients helping out with issues such as these. It is at this times that strategic thinking needs to come into play as well as short term survival skills. I have put together some information below for your review and would welcome meeting with you and your partner at their earliest convenience. Please note the initial consultations is free.

Although one cannot truly buy insurance against a down economy, there are tried and true practices to keep in mind to help defer and hopefully avoid many of the negative repercussions a recession brings. Slow economic growth, higher unemployment rates, a down real estate market, tightening credit and underwriting, as well as higher inflation rates are all characteristics of a downward trend in our overall economy. Many of these issues pound us in wave after wave of tsunami like fashion, berating us emotionally and challenging not only our dreams but also our very livelihood. Much of what one does during a down economic time will either positively or negatively impact much of what occurs during this time. However, it is perhaps much more important what you do as a practical matter in your everyday living and spending habits which are most critical. By consistently applying these precepts and techniques to your spending habits, you will invariably, after a time, adopt much of these into your psyche thereby improving both your business and personal net worth and financial security. As an Atlanta CPA for decades we have put together time tested ideas to “Recession Proof Your Business” at http://www.hiscpa.com/recession-finances.html

Atlanta Virtual CFO (Chief Financial Officer)

A Virtual CFO can provide guidance on issues over and above your tax returns offering business insight towards profit maximization, streamlining of procedures, supervision of accounting personnel and insight to your daily books and records. A Virtual CFO is a valuable member of your management team offering financial expertise at a fraction of the cost of hiring a full time expert. Find out what a Virtual CFO can do for your business. Serving as an Atlanta CPA and Virtual CFO for Atlanta Business Owners for Decades http://www.hiscpa.com/virtual-cfo.html

At HIS CPA, P.C., we care much more about you and your business than just your taxes. Put our value added Business and Tax Programs to work for you today.

www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Alpharetta/Suwanee/Lawrenceville/Norcross/Atlanta/Gwinnett/North Fulton/Johns Creek/Roswell/Forsyth/Flowery Branch/Buford as an Award Winning CPA.

Atlanta Virtual CFO

Is Your Faith Walk in a Funk?

Faith Walk Hangovers…Keeping the Love Alive

Often in this world of computers, e-mail, and cell phones it is easy for us to get distracted and to take our eyes off the prize of Jesus Christ.

As you live in this world Satan will redouble his efforts to derail you and your walk in Christ as you seek to serve Him.

Leaving the safety and the cocoon of love of church each Sunday, the devil will do what He might to lead you astray and away from our Savior.

Resolve in your heart that you will not be moved from doing all that He lays on your heart.

Seek Him with all your soul and might and He will rise you up at the anointed time.

John 14:6 “I am the way, the truth and the life and no one comes to the Father except through me.”    Christianity is for those seeking to Grow Closer to Him, Closer to the Truth and to Grow and to Lead Others Towards Christ.

He alone is worthy of our praise for there is nothing we can do to earn our way into Heaven

It is a free gift from our Savior that we can accept solely by our belief.

It does not matter your age for you have much time left.

It does not matter your past for God has already forgiven it.

It does not matter what you know or what you don’t.

For it is all about Him and what truly matters.

It does matter what you do with this gift.

It does matter where you spend the rest of your life.

It does matter for all those around you friends and family alike, what you do from now forward

For there will be many who never know Christ unless you tell them.

I am so very proud of you and that God has chosen you, His vessel, to fulfill His destiny for your life.

A journey that will last a lifetime and we get to spend it with you here and in the streets of gold in heaven.

In the Matchless Name of Jesus Christ,

www.HisCPA.com       A Christian Atlanta CPA Firm: Serving Dunwoody, Snellville, Duluth, Gwinnett, Grayson, Alpharetta, Roswell & Beyond as an Award Winning CPA

Need Help With Your Atlanta Back Taxes, Tax Problems or an Offer in Compromise?

http://www.youtube.com/watch?v=bPjPAnGVzZw

Visit us online at www.HisCPA.com  A Christian CPA Firm

Need Help With Atlanta Tax Problems and IRS Representation?

http://www.youtube.com/watch?v=friIW_yjQcE

Visit us online at www.HisCPA.com  A Christian CPA Firm

As we watch gifted athletes do what appear to be miraculous things on the field of play, we often fail to keep in mind the endless hours of preparation, practicing the basics and coordination that went into playing and excelling at such a level. For just as “failing to prepare, is preparing to fail” so it is with all walks of life. Most IRS audits, though they feel extremely personal, are predominantly a pure random selection. It is solely a matter of your number coming up. In any given year, a taxpayer, whether business or personal, has approximately a one to two percent chance of being selected and audited. If and when your number is called for an audit and you receive that tax notice in the mail, it is time to prepare and to prepare well. These steps will guide you to audit success with the goal of no adjustments always being the final result:

Using a Power of Attorney to Address Tax Problems

“Even now my witness is in heaven; my advocate is on high.” Job 16:19

Just as Believers we have an advocate in Heaven who will go before us representing our heart, intentions and actions so should be wise stewards and surround ourselves with wise counsel. Hiring a CPA who can be a tax advocate is your best first step in the process. Having someone who is familiar with the audit process, tax law and collection issues is imperative to ensuring that your best interests are always represented. Having a wise understanding of the needs and skill a good CPA will provide will enable you to make a sound and judicious  business and tax decisions. “Plans fail for lack of counsel, but with many advisers they succeed.”  Proverbs 15:22   Prepare, Prepare, Prepare   In the New International Version (NIV) of the Bible the issue of preparation is detailed one hundred seventy six times making it clear that planning is a key tenant in both success and order. The basic first step in preparation is to consistently do the right thing over and over regardless of the circumstances. Keeping good records, documentation and copies of required receipts is something that should never go out of style. Each and every tax year’s data should be well-organized so that you are ever ready and if called to task for any task item required, you will be well armed and able to address and answer any tax questions. Saving copies of tax records, board of directors and shareholder’s minutes, annual registrations and income tax returns is critical to ensure that you will have all the necessary paperwork and documentation that would be needed, in the event of an audit. Automobile expenses are frequently the bane of many in addressing audit questions and their positive resolution; having a by day mileage log to support all of your business miles will help detail and support this deduction. Being aware of what documentation is required for proper tax documentation and recordkeeping to validate tax deductions, will be an invaluable asset to being ever ready, if called to task, to prove or validate a deduction. In order to best understand what is a valid tax deduction and the recordkeeping required visit the below fine articles.

Business Tax Deductions  http://www.hiscpa.com/maximizing-deductions.html

Whether you are a new business owner or have owned your company for years, missed business deductions are a consistent cause of concern. Find new ways and methods to improve your business tracking skills.

Expense Documentation   http://www.hiscpa.com/business-expenses.html

Business expenses and their adequate documentation is key to running a successful business.  Learning the ins and outs of what is required will both raise the efficiency of how you run your business and ensure that you always have proper documentation in the event of an audit.

Automobile Expenses         http://www.hiscpa.com/autos.html

Vehicle expenses are perhaps the most discussed while still being the least understood of all the tax code sections. Discover how this section of tax law can be made simple so that all might understand.   Tax Expediency and Responsiveness   When that tax notice first arrives there is a tendency to put it aside and to deal with it when we have to by waiting for the last possible moment, rather than addressing it expeditiously as we ought. Setting the notice aside is a sure fire way to ensure your audit experience is going to be worse than it needs to be. Initially retaining a CPA to address all of your audit issues is your best first line of action naming your CPA as your sole and exclusive representative to talk to the IRS field agent on each and every audit issue. Accordingly it is usually best not to have the business owner or taxpayer involved in the actual performance of the audit itself, leaving all of the interaction on all of the tax and documentation issues to the CPA. Having all of the requested information well-organized and ready for the tax examination as well as thoroughly explained in writing an integral component of audit success.   In our world of technology and specialization, understanding the general nuances of how an audit works will do much to make an unexpected audit go smoothly. Having an advocate, understanding documentation requirements and being prepared will ensure a far better audit result. Keeping in mind the goal of having the IRS accept all filed returns to be correct as filed, that there are adjustments to be made, and most of all that there are no additional monies due will help keep ensure that both the audit itself and its result are maximized to your best advantage.   Written by author John Dillard CPA of His CPA at 770 814 9304 and visit http://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 Him by Serving You…One Tax Return at a Time.” We advise clients on:

Atlanta IRS representation

Atlanta Offer in Compromise

Atlanta Tax Problems

Atlanta Back Taxes

www.HisCPA.com A Faith Based CPA Firm Serving Atlanta, Duluth, Suwanee, Snellville, Lawrenceville, Johns Creek, Dunwoody, Alpharetta, Lilburn, Tucker, Sandy Springs & Beyond.

Duluth CPA Teaches Business Structures for Your New Gwinnett Business

Incorporating in Georgia

When you start a new business by getting Incorporated in Georgia, you have to decide what form of business entity you desire for your business to be. Your form of business will determine both:

• The types of income tax returns you will have to file. • The amount of tax you pay as well as how it will be determined.

The most common business forms you might decide to consider are:

• Limited Liability Company or an LLC.

• Limited Liability Partnership or an LLP.

• Sole Proprietorship.

• Partnership.

• C-Corporation.

• S-Corporation.

LLC’s, though a relative newcomer as a business structure, the S Corporation for many business owners remains the entity type of choice, with many LLC’s even electing to be an S Corporation for tax purposes.

As a CPA serving Gwinnett for decades we have decided to offer for free to Metro Atlanta Business Owners:

• A Free Initial Consultation. As an Atlanta CPA for decades we believe all business owners should receive a free initial consult, visit http://www.hiscpa.com/initial-meeting.html

• Detailed analysis on setting up the varying entity types at http://www.hiscpa.com/incorporating-articles.html

• Guidance on the Tax Effects of Entity Choice When Incorporating at http://www.hiscpa.com/article6.html

• Bookkeeping Guidance For your Small Business at http://www.hiscpa.com/keeping-books.html

• IRS Representation, Offers in Compromise and Back Taxes at http://www.hiscpa.com/irs-representation.html

So whether you are incorporating in Georgia or throughout the United States these resources will do much to help ensure you get your business off on the right foot.

His CPA, Inc. has helped many companies in metro Atlanta, Gwinnett County, and Georgia prepare for hiring employees, and with filing returns properly. If you have any questions about what you see on this page, feel free to contact us for more information. We are a Faith based CPA firm serving Johns Creek, Suwanee, Duluth, Norcross, Tucker, Buford, Alpharetta, Lawrenceville, Snellville, Lilburn, Decatur, Grayson & Beyond.

Incorporating In Georgia and Entity Selection

www.HisCPA.com  Incorporating in Georgia, Setting up an LLC in Georgia, Setting up an S Corporation in Georgia, Georgia Entity Selection, Converting Your GA LLC to an S Corporation, Converting Your GA C Corporation to an S Corporation, GA LLC, GA S Corporation and Converting Your Georgia Business to an S Corporation