Accounting News and Notes

Duluth/Gwinnett CPA Encourages Believers to Seek Excellence in All That You Do…Taking Christianity Into the World

Staying away from the most common pitfalls taxpayers make is critical to your personal financial success. Careful discernment and wise application of tax law is an essential and critical part of avoiding otherwise avoidable IRS notices, penalties, responsibilities, IRS audits and amendment of prepared returns.

Colossians 3:23 Whatever you do, work at it with all your heart, as working for the Lord, not for men.

As a Body of Believers, we are commanded to give unto Caesar what is Caesar’s. As such and based on the premise of the U.S. tax system, we as taxpayers are solely responsible for the initial filing of our returns and the fair and just filing of our lowest legal possible tax. Avoiding these top pitfalls that many fall prey to will be an integral step in the proper preparation of your return. To assist taxpayers in the process it is the predominant role of the CPA adviser to be aware of tax law, details of changes from year to year and to ensure that not only a legally prepared return is completed but also that only the lowest legal possible tax is paid. The below is a sample inquiry that might be forwarded to an client to ensure not only a smooth tax preparation process but also that you best interests and tax law are always appropriately applied and considered:

For your Personal Return:

-I did not see any cash contributions for charities whereas you had some last year.

-Did you ever pay the state income taxes on the prior amended personal income tax returns as these will be deductible on Schedule A of your personal return as an itemized expense. Per my notes you owed GA $1000 and that you are making monthly payments. Please confirm if this is what you are paying on. As the interest and penalties are not tax deductible, we need to prorate what State Tax has been paid. Please advise regarding the above and then when the payments started, monthly amount, when they will be complete and total to be paid total via state payment plan.

-Please use the below link for the valuation of your donated items to Goodwill and send to me detailed itemization reflecting these totals

http://docs.goodwill.org/alfresco/d/d/workspace/SpacesStore/36cf5260-0bd6-4eea-acfb-8a80e3e014b0/Donation_Valuation_Guide.pdf

-It initially appears as if we might be able to claim Earned Income Credit (for lower income years), which is a credit available if your children live with you full time and if you are the only one who can claim them. Please review/advise.

Tentatively it looks like that you will be due refunds from IRS of approx. $2500 and from GA $400. The larger refund from IRS is due to your lower income year and your possible qualifying for the Earned Income Credit. Please review advise.

Like our faith in God, prudent planning, wise application of the law and staying the course are always a judicious path to follow.

Hebrews 6:17-19 Because God wanted to make the unchanging nature of his purpose very clear to the heirs of what was promised, he confirmed it with an oath. God did this so that, by two unchangeable things in which it is impossible for God to lie, we who have fled to take hold of the hope offered to us may be greatly encouraged. We have this hope as an anchor for the soul, firm and secure.

Serving Lawrenceville/Snellville/Norcross/Roswell as an Award Winning CPA for Decades

http://www.hiscpa.com/article3.html Gwinnett/Duluth CPA Teaches Personnel Keys to Managing Business Growth
http://www.hiscpa.com/article6.html Alpharetta/Roswell CPA Teaches the Tax Effects of Entity Choice
http://www.hiscpa.com/marketing-efforts.html Norcross/Sandy Springs CPA on Tracking Marketing Statistics for Your Georgia Business

And this is only some of the information available on our web site. You also have at our blog a host of other varied and timely tax and business management issues you can use.

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

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

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

Back To the Real World

Maybe you got back today or are still on the road.

Perhaps you have gotten unpacked and even gotten a head start on your laundry.

Maybe you even got a chance to get some house chores caught up or gotten to work.

If you are in school maybe you are counting days to start back to school or a new college.

This week on the reservation we did much to serve as the hands and feet of Jesus.

Exuding love to all who would listen and listening to all who would talk.

This year we had record numbers in attendance again as God continues to bring fruit to our efforts.

Sports Camp, VBS, the Senior Center, Construction Projects, the Kitchen and our ladies and men Bible study groups were excellent with already new ideas being formed for next year.

Our teens were outstanding in the Everything Skit, our young leaders continue to grow and excel. Our adult leaders continue to grow in their faith and their witness continuing to be innovative and invigorating.

This year…we must be getting closer…much closer as Satan this year attacked us greatly.

For Satan does not attack those who are not doing God’s bidding.

There have literally been hundreds of us over the last six years who have dropped all of what we could have otherwise been doing to serve our Navajo Brothers and Sisters in Christ in Pueblo Pintado.

For it is when we serve others when we are most like Him.

When Jesus walked the earth, he did not work from a home base on even have a home during the years of his ministry, but spent time out in the world doing the work of His Father.

But here we are…back in the rush and confusion of our own lives.

Going back to our churches, work and jobs.

Going back to what many people say is the real world but nothing could be further from the truth.

Because the “real world” is not one where we simply work and play but the true “real world” is on the Navajo Indian Reservation/where we serve.

A world where God wants us to serve each other every day.

Be sure you seek to be Christ each and every day to others!

Absent my own death or permanent disability I am going back to see our friends on the reservation next year for my faith life continues to grow as I tell our Navajo brothers and sisters who Christ is.

I make sure that I tell them that I am just like them, seeking to learn and not one as who has learned as we all fall short of the glory of God.

In our talks the last nights we were reminded again that our Navajo friends are counting down the days to return…but so am I.

I have already written my new friends and will continue to do so all year as we all need an encouraging word from God.

We are not arriving back in the Real World…we have just left it.

And I greatly miss each and every one of you and our new found and long-time friends in Pueblo Pintado.

Each of you are now forever our family…we are here for you 24/7 no matter what the time of the day…or night.

We love you and look forward to serving along all who will answer His call and our journey. In the Matchless Name of Jesus Christ,

John/tami

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!

The Emergency Economic Stabilization Act of 2008

enacted on Oct. 3, 2008, includes certain tax-related

provisions that affect individual investors and businesses.

Two key areas provide relief for the alternative minimum

tax (AMT) and extension of the qualified charitable

distribution (QCD) provision from IRAs. Other tax

benefits have been extended and are summarized below.

AMT Relief

The bill increases the exemption amounts used to adjust

a taxpayer’s alternative minimum taxable income. By

increasing these exemption amounts, fewer taxpayers

may be subject to the AMT. The 2008 exemptions include

the following:

Married filing jointly: $69,950

Single: $46,200

In addition, the bill allows a refundable AMT credit up to

50% (versus 20% under prior law) of long-term unused

minimum tax credits. This increase will enable a much

faster recovery of AMT tax paid in prior years.

This provision also eliminates the income phase-out and

any underpayment of AMT tax, interest or penalty

outstanding on the date of enactment related to incentive

stock option (ISO) exercises. Some taxpayers may also

qualify to receive a refund of previously paid interest and

penalties related to an AMT liability. Taxpayers should

consult their tax advisors to determine how these new

provisions affect their specific situations.

Other Key Provisions

• State and local sales tax deduction. Through 2009,

taxpayers may elect to take an itemized deduction for

state and local general sales taxes rather than the

itemized deduction for state income taxes.

• Teacher expense deduction. Elementary and secondary

school teachers can deduct up to $250 spent on supplies

used in their classrooms and for their profession

through 2009.

• Qualified tuition deduction. Taxpayers can deduct up

to $4,000 or $2,000 (depending on income limits) for

qualified higher education expenses through 2009.

• Disaster relief. Victims of the Midwestern Disaster

Area, a specific region that the president declared to be

a disaster area, may take IRA or qualified plan

distributions without penalty and with the income

taxed ratably over a three-year period if it is a qualifying

distribution. The Midwestern Disaster Area includes

counties in Arkansas, Illinois, Indiana, Iowa, Kansas,

Michigan, Minnesota, Missouri, Nebraska and

Wisconsin.

• Charitable contributions for disaster victims. The

charitable deduction limitations for cash donations are

waived for 2008 qualifying donations to charities

helping disaster victims in the Midwestern Disaster

Area (defined above). The charity must provide

documentation showing the donation will be used for

these victims. Contributions to a donor-advised fund do

not qualify.

• Brokerages must report cost basis. For sales occurring

after Jan. 1, 2011, brokerages must begin reporting cost

basis to the IRS on Form 1099. Not all securities fall

within this rule. The requirement to report will depend

on the type of security and the manner in which it was

acquired.

Many other provisions affect different businesses,

industries and organizations in very specific ways. You

should contact your CPA or tax advisor for complete

details on the tax-related provisions of this landmark bill

and how they may relate to your individual situation.

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Wachovia

 This article was provided by The Strong Gaddy Lilly Financial Team of A.G. Edwards a division of Wachovia Securities, LLC.  Member SIPC.  You can contact Mr. Michael Gaddy at 770-532-6361, or visit us on the web at home.wachoviasecurities.com/v639