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/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

Lawrenceville/Duluth/Suwanee/Johns Creek CPA: Strategic Business Concerns Checklist

Utilize this informative checklist to ensure that you are well armed and informed to take you and your business to the next level.

“We work hard as a CPA for Gwinnett and Atlanta Business Owners on your tax and administrative issues offering solutions so that you are able to focus on the running and profitability of your business.”
— John Dillard CPA, President of His CPA PC

Getting Started

Choosing an entity type (C or S Corporation, Proprietorship, LLC, LLP, Partnership, etc.) Do you adequately understand and have planned for how your business is to be taxed? Are adequate tax planning techniques/procedures being applied to mitigate your tax liability so that there are no unnecessary surprises, penalties and interest?

Understanding the tax effects…Are the tax and operational advantages adequately understood and contemplated? Is our present entity choice the best option for our existing business?

Selecting a fiscal year. Selecting officers and directors. Setting up a corporate account/obtaining a business license.

The Formative Stage

How is business organized? What is its state of domicile and determine if you should register in other states?

Have you set up adequate internal controls to protect and safeguard cash, assets and contracting ability?

Have you selected an initial and a backup bank and are you continually marketing to keep your banker informed? A well-advised banker is best apt to respond favorably when needed.

When/how much of a line of credit needs to be established and what are the procedures/timing to determine its adequacy? Has the line of credit maximum been evaluated with what the business model/plan would suggest?

How much insurance do we need (Directors and Officers, Errors and Omissions, Corporate Umbrella, Product Liability, Worker’s Compensation, auto, contents, renters, building, business interruption, surety, fidelity, etc.)?

Corporate Taxes

Are all of the long term (S Elections/filing status) and annual elections (annual registration, business license, etc.) and filings being made both timely and properly?

Is proper tax planning in place and being maintained on an ongoing basis at least twice annually and for all substantive changes in operations?

Is everything being done that can possibly be done to keep the tax bill as low as legally possible? Do we routinely search for any missed deductions?

Pensions, Profit Sharing Plans and Benefits

When and how does the company plan to offer medical, dental, life, or disability insurance? Is there an adequate amount of coverage to both protect and plan for your staff’s retirement and to retain a competitive edge in the marketplace to both attract and retain employees?

How/when does the company plan to set up a 401K, SEP/IRA, simplified IRA, pension, or a profit sharing plan? Are we seeking wise counsel in setting up a plan’s parameters and aware of its filing requirements?

How/when does the company plan to set up a Section 125 or cafeteria plan/HSA (Medical Savings Account)?

Are we familiar/well advised with vesting rules/obligations, anti-discrimination rules, establishment of the plan document (SPD), and annual filing requirements of the pension plan you contemplate initiating/presently have.

Computerization

Do we have enough RAM & data storage memory to cover your business growth, as specified in our business plan? Are our computers data programs and operations adequately physically protected and safeguarded?

When will our present software package be technologically outgrown? Are plans for a new package being presently evaluated? What are our critical path components for data storage/numbers of users, etc and who is responsible for monitoring them and how often? Are we better served with an off the shelf or proprietary package?

Do we have off-site data storage and backup in both hardcopy and disk form? Is our data backed up daily and off site at least weekly? Larger firms should do off-site storage each day.

Are passwords and other appropriate levels of protection/firewalls, Spam control, current and operating adequately to safeguard all of our electronic data?

Shareholders/Officers

Who should we elect and what do they “bring to the table”? Do we understand the responsibilities and legalities of all parties nominated and are they qualified?

If an active shareholder quits, dies or is disabled, how does the shareholder agreement address the vacancy? Is this covered in our shareholders agreement?

How is the shareholder agreement structured? Is it adequate to protect the business future viability?

How much is the buyout or how is the purchase price to be determined? Is it fair and adequate? Are there realistic provisions made for the company to finance or fund a payout?

Marketing Strategy

What are the resources available and are they adequate for the task at hand/growth planned?

How big do we want to get? What does our business plan say? Are budgeted marketing efforts being consistently achieved and monitored?

How are we tracking new business leads and what is our strategy for keeping and retaining our present client base? Marketing statistics are the purveyor of future operational results and are critical to be adequately determined and tracked appropriate with corrective changes in marketing efforts being consistently made.

Financials

Do our financials properly reflect our business needs? Are we able to adequately track meaningful management information such as current assets to liabilities ratios, gross margins, days in receivables, etc?

Are appropriate percentages and ratios being examined? Are we tracking/working with our CPA to determine and track essential financial, operational, and narrative information?

Is the company under capitalized? Do we have enough cash to meet ongoing/expected needs for operations based upon past trends/projections and our business plan?

Do the financials properly reflect the operations of the business and do we understand their nuances? Is management taking the necessary corrections and monitoring their results adequately?

Internal Controls

Who is authorized and to what levels to access the company assets and proprietary data/records/methods and trade secrets? How is this controlled and documented? Is their adequate safeguarding of assets (i.e., are staff members who write checks different from those who prepare the bank reconciliation’s and review the cancelled checks)?

In controlling cash, accounts receivable, accounts payable, inventory and fixed assets, are books and records, passwords, billing procedures, sequential numbering and accounting for invoices and checks properly maintained and controlled? Are assets physically protected and secured with keys/pass codes/tracking technology and video surveillance cameras?

Are assets properly safeguarded/locked during day and evening hours? Locked not only means under physical lock and key but adequately protected by limiting procedures and segregation of staff duties to maintain adequate separation of duties and internal control.

Are policies and procedures documented and are all appropriate personnel informed of the varying levels of safeguards, segregation of duties and appropriate monitoring maintained?

The Business Plan

Is it well written/adequate/up-to-date? Is the plan available to all key personnel? Do all employees understand and committed to your corporate mission? Do you have a standard/motto to live by?

Is your business plan updated periodically and monitored against actual results?

Are operating statistics and financial data appropriately measured and evaluated against the plan? Are we on track? Do we have an independent, non-biased, voice and business mentor to challenge our assumptions and decisions?

Is the business plan operation based and sufficient so that knowledgeable/key employees have adequate criteria and direction to manage and operate their segment of the business?

Does our banker have access to both the business plan and actual operating results? How often is this communicated? Is your banker told well in advance of any operational or financial variances? You will want your banker to positively respond when needed so be sure they are adequately prepped and informed.

What does our company stand for (company motto or mission statement)? Do all employees “buy into” the statement? Is our motto one of actual operational guidance or one of superficial quality? Is our motto customer centered?

Other Issues

Are we planning to acquire a new business or sell an operating segment of our present operations? Have we adequately evaluated if this acquisition is a good fit for our present business, as it exists, mode of operations and business culture?

Shareholder, employee, IRS and other regulatory agency disputes. Are we taking the adequate steps to ensure that procedures, business practices and checklists are in compliance with local, state and federal laws? If discrepancies occur are we seeking adequate representation and prudent counsel to both resolve and make corrective procedural changes?

Compensation Plans. Are our compensation plans competitive in the marketplace to attract personnel and effectively limit employee turnover? Do incentive/bonus/compensation plans effectively motivate employees to achieve qualitative and quantitative excellence?

Serving as a part-time CFO (Chief Financial Officer) for your business, we can help you stay abreast of financial and tax issues before they become problematic. Put our decades of experience to work for you.

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

To read more and see which entity type is best for you visit http://www.hiscpa.com/article2.html

http://www.hiscpa.com/article6.html Gwinnett CPA Advises on Tax Effects of Entity Choice

http://www.hiscpa.com/about_us.htm Providing Accounting and Tax Services to Georgia Businesses for Over Thirty Years

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

http://www.hiscpa.com/testimonials.htm What Clients of John Dillard, (An Atlanta Christian CPA) Have to Say

http://www.hiscpa.com/tax-services.html Georgia CPA Tax Preparation and Planning Services

http://www.hiscpa.com/what_we_do.htm Atlanta CPA Financial Accounting Services

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how His CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, and 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.

Lawrenceville/Duluth/Suwanee/Johns Creek CPA serving Gwinnett and North Metro Atlanta as a Faith Based CPA Firm www.HisCPA.com

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

How to Process an Offer in Compromise with the IRS: Determining the Offer Amount

So you have tax problems, which seem will never go away. You work diligently to get all of your returns properly prepared and now you receive an IRS notice that promises liens on assets, levies to bank accounts and garnishments to your wages. Each notice shows up with the balances due creeping higher, always a bit more than the last. You owe for years of back taxes, penalties and interest and the amount due now seems insurmountable. Perhaps you have even been on an installment plan but the amounts you are paying monthly are less than what is being assessed for additional penalties and interest. Facing what feels like an insurmountable debt, may well give you the sensation that your are entering the twilight zone. You do have options with one of those being the possible submission of an Offer in Compromise. There is light at the end of the tunnel, but it requires determination, resolve and the experience of a CPA who is well versed in these matters.

Though there are many forms to complete including Form 656, which is where the actual offer amount is documented, Form 433A for wage earning taxpayers and Form 433B for businesses owners. Forms 433A for individual taxpayers and Form 433B are the predominant source of information for both taxpayers as well as the Internal Revenue Service to determine a settlement amount. In general terms, the settlement amount is calculated by taking the total of a taxpayers net worth and their excess cash flows (discounted into today’s dollars) over the next five years.

Determining Net Worth

A taxpayers net worth is determined first by adding up all of the assets that a taxpayer owns. This would include their home, furnishings and fixtures, vehicles, cash balances, cash surrender value of any insurance policies, real estate investments, stocks, bonds, and essentially every other asset that a taxpayer owns. If married and submitting a joint Offer in Compromise then the assets reported would also include any assets of both spouses. From the total of the assets, one would subtract the outstanding debt for which a taxpayer has including home mortgages, car loans, credit card debt, equity lines, and generally all of the outstanding loans one has. All of debts (if submitting a personal offer on Form 433A and if submitting a corporate offer on Form 433B), are generally listed on the forms alongside the asset to which the debt relates along with detailing the monthly payment being made and any available credit, which is at present unused.

Determining Excess Cash Flows

Perhaps the most elusive portion of determining the offer amount is the calculation of what excess cash flows are available to the IRS and can be applied against any outstanding monies due. In layman’s terms, this determination is based upon the result of listing a taxpayers monthly income and qualified expenses. The income sources would generally list all taxable income that a taxpayer has been receiving and may be reasonably expected to receive in the future. Also a detailed listing, by category, is prepared showing all a taxpayers monthly expenditures by category. For individual taxpayers ,the IRS has statutory tables which are used to prepare the monthly amount listed. These tables are based upon the monthly income of a taxpayer as well as their family size. The expenditures detailed are frequently the most widely discussed and debated of all the items listed anywhere on the offer forms as often what a taxpayer feels is a necessary and required expense is not viewed in the same light as the same by the IRS. After any monthly excess is determined then this total is multiplied by sixty months (five years) and then discounted back into today’s dollars. This calculation is then added to the net worth amount, as determined above, to list the initial offer amount.

Offer Submissions

Both the IRS and GA are encouraged by tax law, but not required, to cease all collection efforts while an offer is being considered, as long as they feel the offer is being tendered in good faith. Just as the IRS desires to work with taxpayers who have a valid offer for them to consider, so should taxpayers only submit offers if they truly qualify. In this way, both parties are best able to work in good faith to resolve and satisfactorily determine a fair settlement amount.

Getting a good Duluth/Gwinnett CPA to help with your Gwinnett/Atlanta tax issues is your best first step to obtaining sound business and tax advice helping to ensure the likelihood of your business and family home finances. Call a CPA today who is well versed with Tax Representation Issues and Has a Proven Track Record of IRS Representation Success with both an Offer in Compromise & Back Taxes.

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

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

Duluth/Gwinnett CPA Teaches Preparing Corporate Income Taxes to Gwinnett/Atlanta Business Owners

CPA Serving Atlanta GA & Beyond

Continuing to unlock the mystery of the practical aspects of preparing a Corporation Income Tax Return is critical to a business owner not only understanding the nuances of how the return works but also its tax consequences.

In our past article we addressed the hypothetical example of ABC Company while presenting its cash based Profit & Loss statement. As a business owner, you are to list all of your valid business expenses to determine the company’s net income per the internal books and records. As an S Corporation is a “flow through” entity it does not pay any income taxes at the corporate level but instead these earnings flow down to the owners personal return where the profits (loss) are reported and accordingly reflected on the owners own Form 1040. It is there when combined with the other personal income tax issues of the owner that the S Corporation taxable income is determined and paid. In beginning to lift the veil on how to properly prepare a K-1, we have reflected below only the book to tax adjustments of our sample ABC Company to illustrate how the K-1 is prepared. This reconciliation shows how tax preference and adjustment items are reflected on the K-1 (which is a part of the proper filing of Form 1120S/the S Corporation Income Tax Return).

Cash Based Net Income Per the Company P & L            $ 6,000

Add Meals and Entertainment (fifty percent deductible)    2,000

Add Section 179 Depreciation (a tax preference item)*   10,000

Add Contributions, which are also tax preference item     1,000

Taxable Income Per the Return                                   $19,000         

*Section 179 Depreciation is limited by tax law to both statutory limits and the amount of profit a business has (i.e., Section 179 Depreciation can be cannot be utilized in a tax year that it creates or there is a loss). Also care should be taken on the personal return to ensure that maximum amounts of Section 179 are not “blindly” reflected as the statutory limits apply at the personal return level, as well. This is usually not a problem with a single owner business, but can be potentially problematic when an individual may have investments in several different business ventures where, when aggregated, the maximums may be a limiting factor. Generally any Section 179 that is not available in a given year to generated a current tax deduction, may be carried forward to future tax years on the returns where there may be no such limiting factors (such as maximums or profits in a roll-forward year).

A K-1 reflects an owners pro rata share of the corporations income, deductions etc. If you are the sole owner of an S Corporation then you will reflect the whole of the K-1 items on your personal return. However, if you are in an S Corporation where there is more than one owner, then the K-1 will reflect only your proportional share of the business operating results. Thus in the above example if you were a owned sixty percent of an S Corporation, then you would receive $11,400 ($19,000 Taxable Income Per the Return (see above example) times your sixty percent ownership) with other owners receiving a K-1 for their respective portions.

A shareholder who receives a K-1 will be responsible for the payment of the applicable income taxes whether or not any of the earnings or profits are distributed. Thus, shareholders should expect to pay taxes on monies when they are made and not when the actual cash profits are distributed and received into the owners personal bank account. Unlike an LLC, LLP or Partnership an S Corporation K-1 owner will not be responsible for the payment of self-employment taxes for reported income on a K-1 as monies from an S Corporation are not self-employment income, by tax law definition. Due care, however, should be exercised to always ensure that a reasonable salary is paid to all active owners as required by law. The best test of what would constitute a fair salary is what a business would have to pay an independent party for the same services being rendered by a shareholder to the business.

Generally an individual taxpayer will report items on their personal return in the same way that they are reflected on the K-1 and the Corporate Income Tax Return itself; Form 1120S. If you believe a K-1 has been issued to you in error, then you should contact the company’s management or CPA, as appropriate, and resolve any conflicting issues and to receive a corrected and amended K-1, if correction is needed. When you are filing your personal return you should not attach the K-1 to your personal return or Form 1040 as the original or amended K-1 returns have already been filed with the corporation return (Form 1120S) as a part of their filing.

When ABC Company prepares the K-1 as part of the return it will list in Section A its Federal Identification Number or EIN and in Section B the full company name and address. In Section D ABC Company will list a taxpayer’s identifying number or Social Security number, in Section E the shareholder’s name, address, city, state and ZIP code, and in Section F the shareholder’s percentage of stock ownership for the tax year. For purposes of our synopsis we will address first the example of ABC Company above and where its attendant items will be reflected on a K-1 and then will then review many of the more frequently used sections of the K-1.

ABC Company and its K-1

-On  Page 1 of the K-1, ABC Company will reflect the $19,000 of cash based taxable income or profit. Please be reminded that in our example our shareholder is the sole owner of the K-1, otherwise the $19,000 profit would be reduced to the shareholder’s pro rata portion. Also please note that the amount reported here is not the same as the Cash Based Net Income per the ABC Company’s internal books and records. As S Corporation earnings and “certain tax preference items” flow down to the individual personal return they are denoted or the appropriate lines of the K-1 so that each owner will be advised of items and certain tax nuances applicable to their return.

-On Page 1 of the K-1, ABC Company will reflect the $10,000 of Section 179 Depreciation that has been claimed on the corporate return will be listed.

Page 2 of the schedule K-1 details not only where certain items will be reflected on the respective shareholder’s individual or personal return, but also details many subcategories for the lines and sections listed. For example there are eighteen subcategories which are detailed by a letter and description. If applicable then these subcategories are denoted on page 1 of the return and the appropriate amount listed.

-On Page 1 of the return, ABC Company will reflect as subcategory A the $1,000 of Charitable Contributions.

-On Page 1, ABC Company will show the non-deductible portion of Meals & Entertainment (M&E) or $2,000 as per tax law only 50% of domestic M&E to be tax deductible. Line 16 also has several subcategory options and the $2,000 of non-deductible Meals & Entertainment, in our example, will be show as 16C on the face of the K-1.

All of the above items reflect where the items will be recorded on the books for ABC Company for the used illustration. However, there are many more tax preference and non-tax deductible items that are frequently use on the first page of the K-1 and examples of many of those most commonly used are listed below:

-Interest Income will be reflected on the K-1 while Ordinary Dividends should be listed on line 5a and any Qualified Dividends listed on 5b.

-Net short-term capital gains (loss) and Net long-term capital gain (loss) would be reflected on the return.

-Any Alternative Minimum Tax (AMT) items will be reflected using the appropriate designation of the six subcategories listed.

-Property distributions including those made in cash are to be reflected on the K-1.

-If an S Corporation owner also has medical insurance paid out of the company on behalf of the owner or dependents, then this amount for a shareholder will be reflected on the Supplemental Information of this return and labeled typically as Owner’s Medical Insurance.

Preparing a K-1 is not for the meek, faint-hearted or ill-prepared. However using this information as a guide will do much to shed light on what would otherwise appear to be too daunting of a task. Although just as a doctor cannot write an article and thereby “teach” you to do a major surgery, this article will do much to remove the mystique of preparing a K-1 and give you a broader understanding of a K-1 works, is prepared and intersects with the Corporate Income Tax Return.

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: 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

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

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

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

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

Below is my response:

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

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

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

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

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

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

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

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

• Tax Garnishment

• Trust Fund Penalties

• Offer in Compromise

• 100% Penalty

• Statute of Limitations

• IRS Tax Issues/Tax Problems

• IRS Tax Penalties

• IRS Tax Levies

• Tax Liens

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

• Collection Appeal

• IRS Installment Plans

• Delinquent Returns

• Late Payment/Filing of Payroll Tax Returns

• Wage Levies

•Tax Advocacy

• Back Taxes/Returns for Personal & Business Income Taxes

• IRS Representation

• IRS Appeals

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

• Determination of Filing Status

• Review of Past Filed Returns

• Amending Tax Returns

• Filing of Past Returns

• Evaluating & Determining Tax Elections

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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