Accounting News and Notes

What Makes a Christian CPA Firm Different? 

“Serving Metro Atlanta Business Owners for decades as a Faith Based CPA firm, we take God’s principles with us to work each and every day. When you get ready to incorporate your new business in Georgia you will want to consider all of the tax and legal responsibilities. We have helped hundreds of new Georgia business owners get started.” — Gwinnett/Duluth CPA, John Dillard CPA

“Left to our own devices, we are often prone to make decisions that sound good on the surface only to soon learn that our shortsightedness has caused us more harm than good. Therefore, to avoid this from happening it is best not to be in a hurry to make the right decision, while striving to ignore an arbitrary timeline or deadline, which does not exist. It is far more important to make good decisions with prudence and forethought that carefully evaluate all the relevant decisions and options than to hastily precede into turmoil.” — Gwinnett CPA, John Dillard CPA

“From the day you become a client you notice something different. We care! At His CPA PC our most valuable corporate asset is you! We serve God…by serving you one tax return at a time. We serve God…by serving you one tax return at a time. Each and every tax return we prepare is treated as if it is both our first and our last, being sure to take the time to evaluate and consider each and every variable component of tax return preparation while bring the wisdom of 30 years experience as a CPA.”  — John Dillard CPA serving Duluth, Gwinnett & beyond. 

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 

Atlanta/Cumming/Johns Creek CPA: Determining Your Federal and State Withholdings

The federal income tax you pay runs on a self scheduled basis, where you can mostly pay as you go throughout the fiscal year. You are required to pay the federal tax when you earn money and or get income throughout the year. Don’t be lulled to sleep believing an extension to file, Form 4868 is an extension to pay. You can pay these daily basis federal taxes in two different ways. We have displayed them below.

• Determining Your Federal and State Withholding: Employers must withhold income tax from every employee’s pay by law. This is a easy way to pay as you go because the employer will deal with the amounts needed to be paid to federal taxes. Take note that that federal tax can come from other payments the company gives you like pensions, commissions, and other additional payments. Your employer then pays these withholdings to the IRS and the federal tax is settled.

• Determining Your Federal and State Estimated Taxes: (IRS Form 1040E5 on Georgia Form 500ES) Those who do not pay the federal income tax through a withholding must pay their income tax through an estimated tax payment. Most self-owned businesses and some small businesses must pay their taxes with the estimated tax. There are a few other conditions in which you might have to pay the estimated tax: dividends, interest, rents, and other similar funds. This tax covers more than just the federal income tax, it also encompasses alternative minimum tax and self-employment taxes.

If you are an S Corporation owner working closely with IRS publication 505 with your CPA is crucial to ensuring your federal and state withholdings are adequate to tax regulations.

If you did not use these two methods correctly and failed to pay the correct and regulated amount of federal and state income taxes there is a possibility you will retain a penalty. The IRS will calculate and make sure you receive this penalty. Working closely with your CPA throughout the year is essential to avoid unnecessary penalties being charged to you or your company.

We serve clients that are located in Atlanta GA, Gwinnett County, Duluth, Lawrenceville, Snellville, Dunwoody, Lilburn, Decatur, Tucker, Suwanee, Cobb County, Forsyth County, Berkeley Lake, Dacula, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross & Beyond as a Faith Based CPA Firm.

Johns Creek/Suwanee/Duluth CPA…Tax Filing Due Dates

Roswell, Dunwoody, Johns Creek  CPA Asks…Are You Put Out With God Today?

Has Life Dealt You a Tough Hand Lately?

If so read on….If not you might be in heaven already…

Each and every one of  you are dearly loved and I never want you to feel like you are in your pain alone. We are all here with you and are trying to understand as much as we can in this life not having gone through this exact experience before. Often we need to seek out counseling just to have someone to talk too that can listen like you need them to and none of us can provide just the right words or comfort that it’s going to take to see you through this. In life – you are going to have to pray your way through this (through everything). God  is the only thing that will give you the strength to get through each day and make the healing process easier.

Though there may not seem like it there is a light at the end of every tunnel and you have to keep looking for that light. Only God can give you that. We will never understand the reason God does things, but as long as we question and know that God has it in HIS control, we have to find some comfort in that. My prayer for you is that you will find comfort in HIM, you will crawl in HIS lap when the pain becomes overbearing and you don’t feel like you can go on and no one understands.

I will continue to pray that you talk to HIM constantly – not just now but forever – and that you go to HIM in your pain, in your joy, in everything. I always hate that phrase that God will never give you more than you can handle, I know it’s true but I hate it. I know that regardless of what HE gives us to deal with, HE will walk beside us and lift us up and carry us and cradle us until we get through it.

We are all here for you and while it may seem like we “have it altogether”, I can assure you that we don’t – we fall apart, we cry, we question, we hurt – but the main thing is – we want you to get better, we want you to get strong and we want you to take it one day at a time.

We want everything in the world for you…happiness, love, work success, life success, family, peace, faith and at the core of it all – a life based on God…and part of all that we say and do is to try and help you get to that point. We screw up! We are far from perfect! Sometimes we simply not good at it! But I can assure you that in every step of it – we are doing it out of love, concern, caring, compassion and quite honestly, we are living the best way we know how. And while that may not always be good enough – know that we strive everyday to be what God made us to be and that we let you both know that regardless of what is said, done, expressed…at the end of the day – we love you more than life itself, we love you unconditionally, everything we do is done with the best intentions, we love you with all our hearts and all our souls, we thank God for you and we will ALWAYS, ALWAYS, ALWAYS be here for you and you will always have a soft, safe place to fall.

As brothers and sisters in Christ we are kindred hearts in God so that you and I could find each other and share our life experiences and guide each other through this weird , crazy, sometimes painful, sometimes joyful, thing called life. God is there right now, waiting for you to lean on Him each and every second of the day. Call on Him. He is patiently waiting.

I believe Dr. King would continue in his efforts to encourage all in their faith of Christ and for all peoples of the world to see the world as God would.

In the Matchless Name of Jesus Christ,

www.HisCPA.com   A Faith Based CPA Firm Serving Roswell, Dunwoody, Johns Creek, Alpharetta as an Award Winning CPA

Taking Christianity Into the World

Snellville, Lawrenceville, Lilburn CPA: Finding IRS Help On the Internet

The IRS website runs all week and all day for your questions and problems. You can use the IRS website to do a numerous amount of things, we have included those below:

• You can use the website to file your tax returns through an E-File. Some may be able to do this for free.

• You can order necessary IRS products for your tax preparations.

• You can obtain forms needed for filing and other things by downloading them off the site.

• You can use their resources and databases to research your problems and tax questions.

• You can surf through publications using their keyword on-site search service.

• You can review the IRS codes, rules, and regulations in an easier to read form

• You can search recent IRS bulletins and postings to find help with tax related questions and issues.

• You can calculate your withholding requirements and other important marks and numbers.

• You can figure out if Form 6251 has to be filed by using the AMT assistant on the site.

• You can register to receive information from the IRS through emails, which can be used to uphold deadlines and to be notified of important tax-related events.

• You can also find the requirements, recommendations, and ways to start a new business yourself.

• Though many smaller issues such as requesting a copy of a prior tax return or a copy of a prior tax form can be best handled by yourself. I suggest that all taxpayers who are facing any substantive issues such as the below retain a CPA who is well versed in tax representation issues, back taxes and tax advocacy.

We serve clients that are located in Decatur, Conyers, Stone Mountain, Flowery Branch, Decatur, Sandy Springs, Peachtree City, Douglasville, Woodstock, Cherokee, Dawson, Douglas, Forsyth, Fulton, Rockdale, Lithonia, Milton, Mountain Park, Winder and Woodstock & Beyond as a Faith Based CPA Firm.

Your Rights as a Taxpayer

Gwinnett/Johns Creek/Marietta CPA Explains Estimated Taxes for Corporate and Personal Taxpayers

If a taxpayer is not involved in a withholding method then they are most likely subject to pay estimated taxes. Even if your employer does withholding on your W-2 wages you might still need to make estimated payments in the event your withholding is insufficient.  As an Atlanta CPA for decades we work with S Corporation and Limited Liability Company business owners to do tax planning at least twice a year. Some of the things that are taxable are income that might also give rise to heightened income and the need to make estimated payments include:

• Self-employment
• Interests
• Dividends
• Alimony
• Rent
• Gains from asset sales and funds
• Stock Sales
• Awards
• Prizes

There is a possibility that you may have to pay these set estimated taxes if the money that is withheld from your income does not meet the requirements of the withholding codes. One of the largest of these I have seen having been as an Atlanta CPA for decades is when the IRS standard withholding on premature distributions can be limited at times to only 20% when in reality this can be double this amount, due to the amounts being subject to a taxpayers marginal tax rate as well as the 10% IRS Tax Penalty on Premature Distributions from Pension Funds such as a SEP/IRS, 401K, Profit Sharing or Simple IRA.

The estimated tax is used to pay off the taxes owed that are reported on your initial return. Penalties on estimated tax come from delaying the tax payments and from not meeting the required amounts of money to be withheld or paid as the monies are earned. The IRS and Georgia both require payments to be made as they are incurred.

Methods of Paying Estimated Taxes

Form 1040-ES, Estimated Tax for Individuals, from the IRS, and Form 600-ES, Estimated Tax for Individuals for the state of Georgia is the form that sole proprietors, partner, S corporation shareholders should use to file and pay their estimated taxes. Publication 505 can be consulted to help understand the rules involving estimated tax for these entities. For all of our S Corporation clients we work with them at least twice annually doing tax planning to be sure to adjust their withholding on their W-2 wages substantially higher so that estimated tax payments are not also required.

When filing as a C Corporation you need to use Form 1120 ES Estimated Tax for Corporations to the IRS and Form 600 ES Estimated Tax for Corporations when paying the state of Georgia to calculate and record your estimated tax. The payments must be properly deposited according to tax regulation and code.

Atlanta CPA: Preparing Corporate Income Taxes for Decades
http://www.youtube.com/watch?v=LCTWMcvho_M

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

Atlanta CPA: Preparing Corporate Income Taxes for Decades

www.HisCPA.com   A Faith Based CPA Firm Serving Duluth, Gwinnett, Atlanta, Alpharetta, Johns Creek, Dunwoody, Roswell, Snellville, Lawrenceville & Beyond.

Duluth/Snellville/Buckhead CPA Helps You to Avoid Tax Schemes

There are many perpetrators and villainous characters in the tax world. Many people that would do anything to get out of paying taxes and to avoid the IRS. These people have made a mastery of the named “tax schemes” and are committed to avoiding their taxation obligations. We have split the top twelve, most popular, tax schemes into three sections. We hope that these will help you avoid the Terrible Twelve Tax Schemes.

Take Caution of Frivolous Arguments – Business Expense Documentation

Taxpayers should be very aware of those who promote frivolous arguments to avoid paying their tax obligations. These people often claim improbable and outlandish claims that often do not even make sense. They may have the right to speak about their tax claims and even take them to court but they are obliged to pay taxes and will have to pay for their frivolous arguments eventually.

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. See http://www.hiscpa.com/business-expenses.html

Nontaxable Social Security Benefits with Exaggerated Withholding Credit

The IRS has come across many returns where the taxpayer reports nontaxable Social Security Benefits with incredulous excessive withholding. This way the taxpayer reports no income to the IRS on the initial return. In these cases the withholding amount and the initial reported income are incorrect. These mistakes can cause taxpayers major hits including a possible penalty of $5,000. Beware of these returns as they are often made by simple mistakes.

Be Aware Not to Abuse Charitable Organizations and Deductions

The IRS keeps a specific eye out for the abuse of tax-exempt organizations. These abuses include improperly reported and shielded incomes, maintained control over donated assets, and income from donated property. The IRS also looks for donations of non-cash assets like when a multitude of organizations take the full value for both the distribution and the receipt of the non-cash donation. These non-cash contributions are commonly over-valued and resold to the donor eventually.

Be Watchful of Abusive Retirement Plans

The IRS also sees many abuses in the plans of retirement arrangements. These include Roth Individual Retirement Arrangements as well. IRS agents look for transactions that taxpayers use to dodge the limits on contributions to the IRA. Be aware that many of these fraudulent people encourage others to move appreciated assets at lower market value into IRAs or companies owned by IRAs to make annual contribution marks.

Selecting the Proper Type of Retirement Plan for Your Business

Whether you are just getting started or have been in business for years, selecting amongst the varied retirement plans requires the skill of a surgeon and the grace of an artist. To learn more visit http://www.hiscpa.com/retirement-planning.html

To read more about how the IRS is working hard in conjunction with the Justice Department in Tax Enforcement seeking to bring justice/remedy to those who cheat the tax system with both civil and criminal enforcement see http://www.irs.gov/newsroom/article/0,,id=122541,00.html

www.HisCPA.com A Faith Based CPA Firm Serving
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, Duluth, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Lilburn, Tucker, Suwanee, Sugar Hill, Loganville, Lilburn, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Flowery Branch, Decatur, Sandy Springs, Peachtree City, Douglasville, Woodstock, Canton, College Park, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, Douglas, Fayette, Forsyth, Fulton, Rockdale, Canton, Covington, Douglasville, Lithonia, Milton, Mountain Park, Winder and Woodstock.

Atlanta/Gwinnett Business Plans

Snellville/Roswell/Alpharetta CPA… Be Sure Your Tax Returns are Right Before They are Filed

Be Sure Your Tax Return are Right Before They are Filed. At His CPA We Work Hard to Be Sure your tax return is correct so that you don’t have to. The below is a sample letter we might send to a client after the initial data has been critiqued getting it ready to file your return. Is it time to upgrade your CPA firms tax services today?

Open Items Your Corporate Data Ready to Income Tax Returns/IRS Form 1120S

As there was no salary paid for the owners please move the Medical Insurance Premiums for active employee owners to Due From Shareholders on the Balance Sheet.

Please let me know what the face value of the Life Insurance is for the policy as listed on the P/L as tax law only allows us to deduct the value/premiums up to a $50K value policy.

Regarding your question about the loans. Loans are not taxable when you get/receive them nor deductible when pay them back. The amount as listed on the Balance Sheet would be the open amount due and payable. This would be true regardless of who the lender is (bank, credit cards, etc.).

To make sure to the extent that you can, when you need to borrow items that you borrow them in your own name and then personally loan the monies to the business. In this way you create tax basis which will allow you to deduct business losses of your S Corporation to the extent you have personally loaned monies to the business up to this amount.

I sent the below several times and have not yet heard back from you. Please review/advise:

-If you business has an average salary of less than $50,000 (not counting owners, their family members and those not on your medical insurance plan), have less than 25 Full Time Equivalents (FTE’s) and provide over 50% of the insurance for all employees you may qualify for the Small Business Health Care Tax Credit. If you think you might qualify please forward the amount of net medical insurance premiums paid by employee (after deducting the amounts an employee paid) along with whether their medical coverage is Single or Family. To read more about the credit visit http://www.hiscpa.com/blog/2011/08/23/atlanta-cpa-does-your-business-qualify-for-the-health-care-credit/ It would be advantageous to record the medical insurance premiums for employees versus owners in a separate P/L account. Please let me know.

-Please review the detail in the Payroll Taxes account as they represent 31% of Gross Wages and they should only be approximately 8%. Please review/advise as at present these are approximately $20,000 higher than they should be. You had mentioned that you are behind on your taxes. Please review to see if the amounts listed here are correct and to be sure that any Late Payment Penalties are segregated out into a separate Profit and Loss Account.
-After you have made these changes please resend the Balance Sheet and Profit and Loss.

www.HisCPA.com A Faith Based 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

Gwinnett Bookkeeping

Duluth GA/Johns Creek/Suwannee Faith Based CPA: Tax Advice on Income Tax

Many business owners and individuals alike chose not to contact a GPA about their corporate and personal income tax returns until they are contacted by the IRS. An IRS audit is a common precipitating triggering even leading to retaining a CPA for when it is when the IRS notice first arises that a CPA is frequently called, especially if it is a tax lien, levy or assessment.

At His CPA PC we have decades of wisdom and experience handing IRA audits and appeals for Georgia corporate and personal income tax returns including tax issues, for example:

• Tax notices requesting information about your company including where it banks and a list of the corporate officers.
• A request by the IRS for you to complete either IRS Form 433B for your business or IRS Form 433A which is a Collection/Information statement that the IRS can use to assist in its collection efforts.
• A tax notice is frequently a warning sign for taxpayers that need to be taken seriously.
• A history of unpaid and unfiled corporate and personal income tax returns, payroll tax and sales tax reports and failure to make timely estimated payments/substantive payroll withholding.

Be Careful to Danger

IRS tax law requires due process and a series of notices that have to be made before Enforced Collection Efforts can be done. These notices are danger signals that need to be taken seriously before specific assets are seized. Frequently what my appear to be inconsequential to yourself may indeed be a notice of IRS tax problems to come. There are many danger signs taxpayers should take seriously.

Be sure you work with a CPA before the IRS escalates and issue to either Enforced Collection Efforts or Tax Court. It is time you upgraded your CPA services to a Faith Based CPA Firm?

Atlanta CPA…Determining Tax Deductions for Businesses

At His CPA, a Faith Based CPA Firm, we know that Christ has called us all to serve others as if serving God. To that end we look to see ways that we can serve our fellow man/woman by giving the very best tax advice we can provide. These articles will do much to help all new business owners who have just incorporated their Georgia business to know how and what to track to record their business expenses.

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

Atlanta CPA Asks…Have You Been Praying for Someone for Decades? 

Do You Think Christ is Busy…or is Nothing Happening? 

As a Faith Based CPA Firm we believe God can and will do anything with those who love him and seek out his will. 

For some twenty years I have been praying for my brother seeing nothing but God was  busy doing something GREAT. The below is a note I received from my brother just today. Stay the course, walk the walk, talk the talk and live in obedience to Him and He will do great things using your hands and feet. 

     I want to start by telling you about a young boy who was doing what any young boy would be doing during his summer vacation from school.  It was a balmy day with big white clouds floating along in the sky occasionally blocking out the sun. It was warm and while he was standing on the back porch of his home he witnessed something that absolutely terrified him at the time. After seeing what he saw, he ran into the house, shaking, almost in tears. His mother was at home but he did not tell her what he had seen, frankly because he thought she would think he was crazy or something. He just kept it to himself and never told anyone.  I will tell you what happened to that boy but first let me tell you briefly about my past and even more important what I have experienced very recently.

     Many people that I have known over the years that have been born again always claimed to experience this BIG BANG when it happened. I have waited for that Bang for years. Then FINALLY I realized something. Let’s go back to that 10 year old boy which was in 1954, almost 57 years ago. 

While he was standing on the porch that balmy afternoon a train was coming. The railroad tracks were less than a 10th of a mile from the house and he loved to watch the trains and count the cars it was pulling. Back in 1954 the trains were still steam engines and here it came with the smoke just billowing out the stack and blowing that whistle for the crossing it was approaching. Just as it made the crossing he looked above the billowing smoke and there coming out from behind one of the huge white clouds was a man! Yes a man walking across the sky! He just stared and began to tremble as the man walked what seemed to be forever until he disappeared behind another large white cloud. That man was wearing a long royal blue robe with some type of white furry trim all along the edges and around the hood that was bunched up around the back of his neck. He was wearing sandals that had leather strapping up to his calf and he was wearing some type of white garment underneath the robe. He had long, shoulder-length reddish brown hair and a full beard. The boy realized although the man was up in the air about 500 feet and at least a quarter of mile away, it appeared I could reach out and touch him as he seemed to be that close. Yes that boy was me and now I realize that was my Big Bang! But I was either too young physically or to immature spiritually to understand what happened that day.

Gary