Accounting News and Notes

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/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

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

Why Do I Do Missions?

Quite honestly there are thousands of reasons, but one of the main ones is the lives that we impact to both those we serve and those we serve alongside on our trip. Here is a sample letter we might receive. God is soooo Good!

I was talking with some people from the Pueblo Pintado trip last night and just talking about all our experiences there. I have been thinking a lot lately about this year’s trip and how I am currently not going. I didn’t realize that my parents weren’t planning on having my family go again and by the time I found out, I figured it was too late. I know I personally told you that I was going to go back. This is the reason I’m sending you this message. I want to go back to Pueblo Pintado, more than anything in the world. My girlfriend feels the same way and we would love to meet up this week with you and talk about the possibility of going. Thank You.

In Christ,

www.HisCPA.com  A Faith Based CPA Firm serving Duluth, Gwinnett, Suwanee, Johns Creek, Atlanta & Beyond

Duluth/Gwinnett CPA Deducting Tax Preparation Fees and Other Expenses

Tax preparation fees are usually be deducted on the return for the year that you paid for them. These fees include assistance in tax preparation through personnel, tax preparation programs, and tax publications. These fees also include fees from electronic processing.

Other Expenses

Some expenses can be deducted as miscellaneous itemized deductions if they are expenses that you use to pay:

 To produce or collect income that has to be included in your gross income

 To manage, conserve, or maintain property held for producing such income

 To determine, pay, or claim a refund of any tax refund

You can deduct all expenses you pay for the purposes of the first two stated above if they are reasonably or clearly related to these purposes:

 Appraisal fees in casualty loss or charitable contribution

 Casualty and theft losses from property used in performing employee services

 Depreciation on home computers used in your business

 Fees to collect interest and dividends

 Hobby expenses but no more than hobby income

 Indirect miscellaneous deductions from pass through entities

 Investment fees and expenses

 Legal fees related to producing or collecting taxable income or getting tax advice.

 Loss on deposits in insolvent or bankrupt financial institutions

 Repayment of income previously reported and taxed

 Social security benefits repayment

 Safe deposit box rental, except for storing personal effects like jewelry.

 Service charges on dividend reinvestment plans

 Tax advice fees

 Trustee’s fees for your IRA

It is time to upgrade your CPA firms tax services today?  John Dillard CPA…An Award Winning CPA. To read more about our qualifications, experience and talents see http://www.hiscpa.com/about_us.htm    www.HisCPA.com A Christian CPA Firm in Duluth GA Proudly Serving Alpharetta, Suwanee, Lawrenceville, Norcross, Atlanta, Gwinnett, Johns Creek, Roswell, Forsyth, Flowery Branch, Buford, Dunwoody, Snellville, Lilburn & Grayson as an Award Winning CPA

Duluth, Johns Creek CPA: Got Questions When Pulling Your Tax Information Together?

Got Questions When Pulling Your Tax Information Together? The below is a sample letter we might receive from one of our business clients pulling their tax information together to prepare their returns. It’s hard enough to know what to look for that’s why we work hard on the front end to ensure you have all of your tax information well compiled to make sure you pay only your lowest legal possible tax:

I have several forms from corporate payroll. It looks like I am missing a G-7 but I do have the 940 and 941. The payroll service filed quarterly return (tax and wage report). I received a delinquent letter so I went ahead and paid for the last 2 quarters. For the Federal Payroll tax deposit, the federal payroll tax return and Georgia payroll tax return should I have forms for those?. You mentioned sending a balance sheet, profit/loss? Is there a form to fill out for that?

I have a few thousand dollars that is owed to the business but it looks like I won’t get that. Where is that reflected? I’ll send you what the payroll service sent to me.

Below is my response:

The only form I need that is payroll related for your business is the W-2′s the company issued along with the W-3. If you do have an accounting package such as QuickBooks to recap your data please use the form that I have provided the link to below being sure to list your beginning and ending cash while ensuring that the schedule adds up.

http://www.hiscpa.com/recap.pdf

As your business is a cash based taxpayer it does not report any billings as income until they are collected, thus any money due you at the end of the year is not reported until they are actually paid by your client.

If you are still having any trouble with the payroll service please send a letter of introduction to them of me and have them call me ASAP and I will help guide them in making any corrections. Feel free to call might you have any questions.

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

Duluth, Snellville, Johns Creek CPA: IRS Installment Agreement Request

IRS Representation is not for the meek or the ill-prepared. If you owe the IRS more than $10,000 be sure to consult with a CPA who is well versed in IRS Tax Representation issues. The below is a sample letter we might send to the IRS on behalf of a client who had back taxes who is now seeking to file all of those returns and to address the open monies with the IRS:

Internal Revenue Service Atlanta GA

Re: Installment Agreement Request and Form 9465

Enclosure: Power of Attorney

Dear Sir or Madam,

I am writing you in a good faith attempt to come to terms over the above taxpayers open taxes owed to the IRS. Since I have assumed the role as their financial advisor, I have consulted with them, and in good faith have pulling together the information to file all of their returns and to address the open balances owed.

I have enclosed a revised Power of Attorney and Form 9465/Installment Agreement Request to pay all over time all of the open due and payable personal income taxes of the above taxpayer.

Please accept the enclosed Form 9465/Installment Agreement Request as submitted. I have asked the taxpayer by copy of this and verbally to begin paying on this agreement even while it is being processed.

Please do not seize any of their property during this time as it will impair their ability to address their open and due taxes in full. I appreciate your attention to this matter and look forward to working with you to process their file.

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

Is it time to upgrade your CPA services. Call us today to see what a Faith Based CPA Firm serving Metro Atlanta & Beyond can do for your business and tax issues.

Christian CPA Challenges Atlanta Believers: Are You Letting People Know You Love Christ?

Are You Letting People Know You Love Christ? If not, why not? Certainly there are opportunities in some parts of your life where you can be ALL that God made you to be. Pray that you become a light unto a lost world and that you seek to tell ALL you meet the Good News of Jesus Christ. The below is a sample note we might receive off of our web site. See what you can do today to let others see God in You!

I am currently studying for my CPA exam, after receiving my MBA in Accounting a year ago.  The reason I am contacting you is because I too, am a born again Christian.  I admire your ability to show your faith through your work.  I would love to talk to you about that, and Accounting.  If you have a few moments, I’d love to meet with you at your office, or a phone call if you are too busy. Thank you for reading.

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, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

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

Atlanta, John Creek, Alpharetta CPA: Where to Send Your Mail Requests When You Need Tax Information

If you are interested in sending in requests for forms, instructional documents, and IRS publications, you should send your request envelope to this address where you would have normally have filed your income tax return. For a complete list of these and where to file please see http://www.irs.gov/file/index.html

If you are in need of Receiving Information from the IRs through DVDs

With the mail order you can receive instructional DVDs from the IRS (Publication 1796). We have listed the names of the DVDs below: • Instructions for your current-year forms and publications • As well as the same for the prior year • They will send you Tax Map, which can be used to find and research information electronically • Included is a Frequently Asked Questions guide about Tax Laws and Codes • A List of topics from the IRS hot line information systems • The actual Internal Revenue code defined by the IRS in full. • Easy to complete, fill in the blank tax documents • A beneficial list of IRS tax bulletins and posts • A list of toll free and email support names and numbers

This release twice a calendar year, January and March. These DVDs can be bought from the NTIS from the website : www.irs.gov/cdorders for $30. These DVDs are helpful and informative. 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.

Help Avoid an IRS Audit Discover simple steps that you can do to help prevent an IRS audit. Though the tax code is at times very difficult to understand and comply, these basic simple steps will help you avoid an IRS audit. See http://www.hiscpa.com/avoiding-audits.html

Atlanta Offer in Compromise When all else fails and if you qualify, the IRS and Georgia both have a program which will enable you to work to solve the severest tax problems. Visit http://www.hiscpa.com/offer-in-compromise.html

Atlanta IRS Installment Plans to Pay Your Past Due Taxes The IRS has long been in the business of helping taxpayers get back into the system to ensure that taxpayers are able to pay their taxes over time. For those who do not qualify for an Offer in Compromise or to pay the taxes and interest in full, while seeking penalty abatement, an Installment Plan is a prudent and wise choice and alternative to get your past taxes due paid and current. See http://www.hiscpa.com/installment-plans.html

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.