Accounting News and Notes

Duluth/Gwinnett CPA: Starting an Atlanta Home Based Business for the Tax Deductions

First and Foremost Advice is. Don’t start a home based business for the tax deductions. The only valid, just and smart reason to start a home based business is to make a profit and to provide a living for yourself and your family.

Home based business’s starts and success stories have soared over the years as the negative mystique of having a home based business has all but disappeared. With all of the advances of technology ranging from the Internet, laptops, e-mails, text messaging and cell phones you can now have a virtual office anywhere. In fact, the last statistic I saw in Gwinnett County indicated that nearly one-third of all of the local business’s were home based.

I recently fielded a call from an individual who was looking to start a home based business. They were hoping to start a business that was not only based upon the possibility of making money but also the probability of taking tax deductions and in so doing lowering your tax bill as a result. This has many financial and providential problems that include:

-Tax Law. Tax Law says that anything that one does solely to reduce taxes is not legal. Thus, if your sole desire is to created deductions out of thin air, not only is it against taw law, it will create tax problems rather than helping to reduce your tax liability. Thus, you will want to invest in ventures that are economically viable.

-Success. Foremost I want to succeed. I want to work with those who want to succeed. I want to have friends and associates who want to succeed. Secondly, I cannot feed my family with a tax deduction. The grocery store, the bank, my mortgage company or my car note does not accept tax deductions as valid legal tender. Set about surrounding yourself and using mentors who have succeeded and not those who attempt to “squeeze the system.”

-Prudence. In order to serve my family, my obligations and my Lord I have to have a means in order to provide for myself but also others. In these tough economic times, there are many of us who need special assistance with whom the profits of our labors cannot only benefit ourselves but also many who are less fortunate.

Being good stewards is a critical part of our “Faith Walk” and an essential component of this is being wise to those who would attempt to lead us down the path to our destruction. Seek out only investments and business opportunities where there is a proven, tracked and verified record of success as your best defense to sound financial planning. So next time you hear that “slick presentation” flee with your hands on wallet as you walk out the door!

Tax Deductions for Businesses

Finding (and Tracking) Business Tax Deductions
Whether you are a new business owner or have owned your company for years, missed business deductions are a consistent cause of concern. Discover new ways and methods to improve your business tracking skills. http://www.hiscpa.com/maximizing-deductions.html

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

Handling Automobile Expenses
Vehicle expenses are perhaps the most discussed while still being the least understood of all the tax code sections. Read how this section of tax law can be made simple so that all might understand.  http://www.hiscpa.com/autos.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, Dunwoody, Sandy Springs & Tucker as an Award Winning CPA

Duluth CPA:  Donations Needed for Family Mission Trip to Navajo Indian Reservation

Feel  free to call John Dillard CPA at 770 814 9304 for more information on the trip and how you/your family can go with us the Week of July 6, 2013

Atlanta CPA Shows How to Resolve IRS Back Tax Issues

IRS rules are set out to assist those who are attempting to comply and to encourage all of us, either willingly or not, to file and pay our just and fair taxes. Tax laws, though complicated to the lay person, are often confusing. A CPA can help people navigate through the tax maze by making the complicated easier to understand. By seeking and following the advice of a trusted professional we are able to comply with tax law with the least amount of pain and aggravation. By not filing returns, not paying amounts owed when due, and attempting to tackle complex tax issues, we do not have the skill or wisdom to adequately address, many fall prey to our general inability to understand all of the nuances involved. A Good CPA can help address and solve tax issues.

Tax Problems

The best first issue is to review the reasons for the assessment. Many times during this process it is discovered that it is not a payment issue but the original returns filed need to be amended. After the determination of a just and fair tax, one can begin to adequately assess and make arrangements for the monies due. Great care should also be taken during this time to ensure that all payments and credits have been properly applied to the balance owed

Trust Fund Monies

In the event your business has employees or collects sales tax, the monies withheld from payroll and sales taxes collected are technically withheld “in trust.” As such they have legal exposure to both the company for payment, as well as those personally responsible parties who knew about and controlled such payments. A responsible party is generally defined as those who were most/responsible for payments that would well extend to check signers, accounts payable, officers, and financial staff. This assessment is for one personally who collected trust monies which they unduly did not remit to the appropriate taxing/legal authority. As these monies are withheld in trust, they do not belong to the company/business. Both the IRS and individual states take a very dim and stern view of all those who unduly use their money. A 100% penalty may be assessed to the responsible parties making them personally responsible for any collected and unpaid trust fund monies.

If a business is not able to pay its staff payroll taxes/remit collected sales taxes as due, it is a clear warning side that the business model is upside down. Though most times it would indicate that the margins of a business are not adequate to support the business’ present staffing levels and overhead, it could also be an indicator that the business is not properly leveraged/financed.

Installment Agreements

The IRS will work with taxpayers to pay the monies owed over time. This option requires the taxpayer to file a form requesting that a specified amount be paid monthly over time. The IRS then has to accept the plan prior to it becoming effective. Though this is a practical way to address a larger balance over time it does not stop the assessment of penalties and interest which will continue to accrue until all monies are paid in full. Thus, it is most advantageous to consider procuring the funds from other sources as these finance/carrying charges are usually much less than that of the Internal Revenue Service.

Failure to File Penalties

Failure to File Penalties are assessed in addition to normal penalties and interest for those who do not make their payment and filings on a timely basis. Please be reminded that an extension does not allow a taxpayer to pay at a later date, as income taxes are generally due and payable as they are earned. However, a situation is greatly exasperated when a taxpayer does not file their taxes on a timely basis. Thus it is financially most advantageous to file a return even if a taxpayer does not have the monies to pay a return as the monies become 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, 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 CPA: Gwinnett Christian Bible Study Group

I pray that during the rush of life God finds you still and that you let He, His heart, and His Passion for your Life be revealed.

It is in living in obedience to God that we can best find His will for our lives and Our Destiny.

Our group will continue meeting weekly on Monday evenings. We are open to those who are seeking to make a year commitment to study God’s word. A year you ask? You are right it is not really enough. It should be for a lifetime!

Below is the initial announcement about our group. Please share it with others both to strengthen others and to reach out to a lost world.

In the Matchless Name of Christ,
John Dillard CPA

Christian Business Men’s Group

You Are Uniquely Chosen. God Designed You for a Higher Purpose. God Made You to Worship and Glorify Him.

Monday nights invite your fellow brothers and sisters  in Christ as we open God’s word to see what HE says about US!

If you are looking for Godly men and women to surround yourself as you walk through life to encourage and support you, to challenge you to greater heights in your walk and to stand by you in times of toil and trouble, you will be joining the right group.

To learn more call John Dillard CPA at 770 814 9304

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

Duluth/Lawrenceville/Johns Creek CPA  Assists Taxpayers with Converting Atlanta Business Taxpayers to an S Corporation

His CPA PC: Providing Bookkeeping & Accounting Services to Metro Atlanta

About S Corporations/What Entity is Best for Your Georgia Business

Subchapter S Corporations can have no more than one hundred shareholders and they all need to be U.S. citizens or resident aliens. This corporation type almost always has to have a calendar year as the fiscal year. S Corporation rules have been around since the 1950s and were set up to simplify the rules and regulations of being a business owner.

Liability Protection and Subchapter S Corporations

A subchapter S Corporation, like a C Corporation, affords the business owner personal liability protection from business risks. Some of the keys to maximizing that protection are to treat the corporation like one by doing all your business in the corporate name, signing all of your documents listing your corporate title, not co-mingling any personal issues/bills in the corporation, and by having your annual Board of Directors and Annual Shareholder Minutes Meeting.

Tax Advantages of S Corporations/Incorporating in Georgia

No income taxes are paid with the corporate return. The profits of the business are reported on the personal tax return of the S corporation’s shareholders. As long as you pay yourself a reasonable salary, you may also take shareholder distributions out of the business that are devoid of FICA/Medicaid taxes.

Another advantage of S Corporations is that if you have corporate losses, and you fund (you put the money in the business) those losses personally, then you can deduct those losses on your personal return. Any losses that are funded by the bank (a direct loan from the bank to the corporation) or by trade creditors are not deductible. Below is a sample letter one might send to the IRS to ensure that the S election has been properly received and timely processed by the IRS.

Taxpayer Advocate Office

Atlanta GA  

Dear Sir/Madam, 

I am writing to follow up on your IRS Letter dated 1-16-10  (copy enclosed). Please note I have enclosed a copy of the S Corporation election and the signed S Corporation return as requested. Please fix your records accordingly to show that the client was an S Corporation for the tax year in question. 

Accordingly please refund any monies previously paid. 

I appreciate your attention to this matter and please do not hesitate to contact me should you have any questions. 

Very Sincerely Yours, John C. Dillard, CPA, President

www.HisCPA.com Duluth/Suwanee/Johns Creek/Lawrenceville CPA: Income Tax Preparation, Financial Statements & Bookkeeping, IRS Representation, Back Taxes & Offer in Compromise

Duluth/Gwinnett CPA: Advises Gwinnett/Atlanta Taxpayers on 2013 Tax Filing Deadlines

CPA Serving Atlanta GA & Beyond

As 2013 dawns, a new year begins. A CPA is limited by what they can do to interpret the past but we can do much to both change and influence the future. In Matthew 6:34 we are exhorted to “…not worry about tomorrow, for tomorrow will worry about itself.” Though many might tell you this encourages us to only deal with the issues of today, this argument fails to consider the long range planning of Joseph in the Old Testament as he used the seven abundant years in Egypt to plan for the seven lean years that followed. Just as we serve a God or order so are we to adequately plan for the future while never taking our eyes off our true cause of our faith: Jesus Christ.

Many of us will spend much of the Christmas Season looking back as well we should to positively reflect on what we have learned and how better to apply the new knowledge and skills we have learned. But I believe we should predominantly focus on what we can do to improve our lives and business and the future. Knowing important deadlines to keep in mind will do much to ensure that we stay aware of key and important dates. To that end, I have listed below Several Key Important Filing Dates and Deadlines.

Keep These Important 2013 Tax Filing Dates in Mind

January 1st

-Set up an S Corporation or an LLC(Limited Liability Company) for your sole proprietorship

January 15th

-Paying fourth-quarter 2012 federal and state estimated taxes.* Consideration should be given to pay the state component in the prior year so as to make the payment deductible in 2012

March 15th

-Filing calendar-year corporate returns for both C and S Corporations or extensions. Please be reminded that an extension to file is not an extension to pay.

-Funding and setting up a SEP Plan for Corporations (SEP Retirement Plan set up and funding can be extended by the filing of an timely extension).

-New Corporations, LLC’s and C Corporations are to submit their S Election form for it to be effective within 75 days of the beginning of the tax year or the day of incorporation.

April 15th

-Filing of Personal Income Tax Returns to the IRS and state or extensions. Please be reminded that an extension to file is not an extension to pay.

-Paying 1st quarter 2013 federal and state estimated payments.*

-Setting up and funding 2012 Roth and Education Saving Account Contributions.

-Setting up and funding SEP Plans for partnerships, LLC, LLP, and proprietorships. Please note that the filing of an extension will extend this deadline.

June 15th

-Paying 2nd quarter 2013 federal and state estimated payments.*

September 15th

- Paying 3rd quarter 2013 federal and state estimated payments.*

-Final Date for filing of Federal and State Income Tax Returns for C and S Corporations, which were previously timely extended. Please note there are no extensions available after this date for corporate income tax returns.

October 1st

-Deadline for employers to set up an SIMPLE IRA for the 2013 tax year.

-Deadline for employers to set up a Safe Harbor 401(k) plan for the 2013 tax year.

October 15th

-Final Date for filing of Federal and State Income Tax Returns for Individual Taxpayers, which were previously timely extended. Please note there are no extensions available after this date for personal income tax returns.

*Rather than make these quarterly estimated tax payments for active S Corporation owners who are receiving an annual salary or W-2, it is most prudent to increase the federal and state withholding sufficiently to cover the year end liability. In this way, this would eliminate the extra step of having to also make estimated payments as well as potentially avoid some late payment penalties which would otherwise might be accrued.

Although I have heard that life is what happens while we are busy making plans I believe more aptly that for those who fail to plan are preparing to fail. Being aware of your business and tax deadlines is an essential part of knowing when to say when as a word to the wise is always sufficient.

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

Things at our church and things at our Grow Group

I may be very unpopular for saying this but….

I am only concerned about one thing!

Following God.

I know my faith requires me to be obedient to authority. All types. Whether I want to be or not.

Being a man and a servant leader in a lost world and submitting to authority is difficult. Very Difficult.

But as for me and my house we will serve the Lord. ALWAYS. Not occasionally. Not on Sunday. ALL DAY. EVERY DAY.

If life could be measure in size I think it might look like.

1.GOD

2. Family

3. Church/Work/School/Friends

Sometimes when we get confused we take our eyes off the prize. The only true prize that matters. Jesus Christ.

Who told us to do one thing when He left the world. Make Disciples.

I think there are many things as Believers that we frequently forget…we are not to follow man. Not ANY man.

We are to follow only Christ.

For when we take our eyes off the prize of Christ, we lose direction and amidst the waves of the storm we begin to sink. Quickly.

The true question is not where you go to church.

The most important question is what are you going to do with the one true church (who is Jesus Christ alone) that He gave you.

As for me and my house we will serve the Lord.

As you know I am married…to a cutey I might add who is a mother.

We have a son who is immersed in a Faith Walk that is leading him to a new church.

The words that I share with our son is to listen to God’s voice alone. Not to mans. And to wise and discerning about what is true.

The verses that for the last two days have been laid on my heart are.

Psalm 27

The Lord is my light and my salvation —whom shall I fear? The Lord is the stronghold of my life—of whom shall I be afraid? When the wicked advance against me to devour me, it is my enemies and my foes who will stumble and fall. Though an army besiege me, my heart will not fear; though war break out against me, even then I will be confident. One thing I ask from the Lord, this only do I seek: that I may dwell in the house of the Lord all the days of my life, to gaze on the beauty of the Lord and to seek him in his temple. For in the day of trouble he will keep me safe in his dwelling; he will hide me in the shelter of his sacred tent and set me high upon a rock. Then my head will be exalted above the enemies who surround me; at his sacred tent I will sacrifice with shouts of joy; I will sing and make music to the Lord.Hear my voice when I call, Lord; be merciful to me and answer me. My heart says of you, “Seek his face! Your face, Lord, I will seek.”

Read theses verses again and again…let their words seep deep into your soul.

We need to ask ourselves. Are we truly worshiping God. For nowhere in the Bible does any scripture which church “you should go to” for that legalism of the Old Testament was broken by Jesus Christ alone and we are not to judge ourselves as to how the world judges us but how Christ alone does.

But as for me and my house we will serve the lord and I will seek only His face!

Our Grow Group just like our Mission Trip has always been open to all Believers throughout the World who seek to Join us in Taking the Love of Jesus to a Lost World for we are to worship only one thing.

Our Lord Jesus Christ. The Alpha and the Omega. The Great I Am.

So…the real question for the day is not where you go to church.

The real question is are you seeking Him.

Do you seek Him in ALL things.

Is He the ruler or your life.

Or are you swayed to a fro like a reed in the wind.

Or are you rock strong on the only thing that matters.

Are you really fulfilling what we learned in the book Radical.

Are you giving your time to others that are outside your city.

Are you teaching others to be disciples of Christ.

Are you seeking to give sacrificially.

Are you seeking to grow in God’s word and in reading the whole of the Bible.

Are you praying for the world or even a specific part of it.

We invested several months this past year in doing something great and reaching a new plateau in our Faith Walk and I believe it is time to take our Walk in Christ.

Deeper. MUCH Deeper.

For I am still tired of being a Mamby Pamby Christian for I seek to do only one thing.

Serve HIM!!!

Our Grow Group will resume the first full week after labor day on Monday night at 6:30.

I look forward to seeing you all then!

Invite everyone you see ;0))

In Christ Name Alone,

john

John Dillard, CPA of His CPA, PC, 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 www.HisCPA.com A Christian CPA Firm

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

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

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