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

Duluth GA/Gwinnett/Lawrenceville Christian CPA…Ten Top Ways to Know It’s Time to Hire a Bookkeeping Service/Virtual CFO

Top 10 Ways to Know It’s Time to Hire a Bookkeeping Service/Virtual CFO

1. You Don’t Know Which Accounting Software is Right for Your Business.

2. You Don’t Know What a Journal Entry is.

3. You Don’t Know a Current Asset from a Gross Margin.

4. You Don’t Know How to Debit or to Credit.

5. You Don’t Have an Accounting Background.

6. You Do Want to Know Where you are Financially.

7.  You Do Want to File Your Tax Returns Correctly.

8. You Do Want to Increase Your Chances of Financial Success.

9. You Do Want to Make Prudent Financial Decisions.

10. You Do Believe Your Business is Important.

At His CPA we work hard with your accounting and bookkeeping issues so you don’t have to.

Financial statements are often misused and abused. They are often ornately presented with accountant’s opinions ranging from audits to compilations. Often we even find a statement of cash flows and financial footnotes. What do these statements tell us? Numbers and data when prettily presented often are an accountant’s representation of the financial status of an entity. Be sure you work with a CPA on your bookkeeping and financial statements who cares about your business as much as you do.

“Financial statements without narratives, analysis of trends, and a review of expenditures are nothing more than formal proof that the bank account has been reconciled and that everything balances. Data without thorough critique is useless.”  –John Dillard CPA

Monitoring Your Books at the End of the Month

Consistent month end control procedures are critical, as any variance to these will negatively impact the reliability of your internal financial. As a Duluth CPA Serving Gwinnett & Metro Atlanta business owners and entrepreneurs here are just a few of the tips we give clients each and every day http://www.hiscpa.com/monthend.html

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, Dunwoody, Snellville, Lilburn & Grayson as an Award Winning CPA

Duluth GA/Gwinnett/Lawrenceville Christian CPA…A Full Service Bookkeeping Firm

His CPA PC: A Full Service CPA/Bookkeeping & Financial Statements. This week at His CPA PC we:

-Helped guide a client to properly classifying their accounts on their Profit and Loss

-Guided a client in being sure their bank account were properly classified and that reconciling items were evaluated for correctness

-Ensured that Health Insurance Premiums were properly classified and listed on the company’s internal financial statements and tax returns

-Reminded a client that QuickBooks is not a “static accounting package” requiring ongoing maintenance to prior periods to ensure congruence with filed tax returns.

-Assisted with determining the chart of accounts to compile financial operating results

-Worked with a taxpayer to pull their financial information together for several years of old tax returns

Financial statements are often misused and abused. They are often ornately presented with accountant’s opinions ranging from audits to compilations. Often we even find a statement of cash flows and financial footnotes. What do these statements tell us? Numbers and data when prettily presented often are an accountant’s representation of the financial status of an entity.

“I believe that financial statements without narratives, analysis of trends, and a review of expenditures are nothing more than formal proof that the bank account has been reconciled and that everything balances. Data without thorough critique is useless.”  –John Dillard CPA

Monitoring Your Books at the End of the Month

Consistent month end control procedures are critical, as any variance to these will negatively impact the reliability of your internal financial. As a Duluth CPA Serving Gwinnett & Metro Atlanta business owners and entrepreneurs here are just a few of the tips we give clients each and every day http://www.hiscpa.com/monthend.html

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, Dunwoody, Snellville, Lilburn & Grayson as an Award Winning CPA

Duluth, Johns Creek, Lawrenceville CPA: Completing IRS Form W-4 and Worksheets and Georgia Form W-4

Determining Marital Status

People who qualify under the claim of married generally have a lower withholding rate. If you are not married then you must take your withholding at the increased single rate.

You should mark single in the box if any of the following apply to you:

 If you are single, divorced, or separated from your partner by order of court and law

 If you are married but your spouse is not an American citizen

 If you are married and you chose for your spouse not to be considered a legal U.S. Citizen but instead a resident alien for tax reasons.

You should mark married in the W-4 if any of the following apply to you:

 If you and your spouse are both legal U.S. Citizens. If your spouse dies during the current tax year you are still considered married for that year.

 Either you or your spouse is considered a resident alien. You can find the details on resident aliens with Publication 519.

If you are married but still withholding at a single rate. If you and your spouse, both working, cannot meet the requirements of a married withholding tax then you can file a “married, but withhold at a single rate” to fulfill the necessary payments for married withholding.

Determining Withholding Allowances

Allowances run in relation to your amount withholding. The more allowances you claim the less income tax you have to withhold, or your employer has to withhold. Your allowances depend generally on the following:

 How many exemptions you can take on your tax return

 Whether you have income from more than one job

 What deductions, adjustments to income, itemizations, investments, business ownership, and credits for which you are tax eligible

 Whether you will file as head of the household

If you are married, it depends on whether your spouse is going to work or claim allowances on their own Form W-4 to the IRS and the G-4 to the State of Georgia.

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, Dunwoody, Snellville, Lilburn & Grayson as an Award Winning CPA

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

Lawrenceville, Snellville, Duluth CPA Asks…Are You Waiting on a 1099?

Hi John, I’ve pretty much gathered all my 2011 tax information, I’m just waiting on a 1099 for some consulting work I did last year. I’m hoping to have the 1099 in my hands within the next few weeks but there’s no guarantee. Should I forward a copy of what I have on to you now or wait? Can I file and now and do an addendum later?

Below is my response:

Tax law requires you to report all of your income regardless of whether you get a 1099 or not. I suggest you go ahead and forward your data reflecting all of your revenue collected. Feel free to give me a call if you have any questions.

Identifying if a Worker Is an Employee or Independent Contractor

Classification of your workers is often one of the most confusing sections of tax law. This recap will begin to enable you to properly classify your workers. Having served as a CPA in Atlanta for thirty years I have personally witnessed taxpayers make this mistake again and again. To be sure that you classify your company workers correctly see http://www.hiscpa.com/independent-contratctor.html

Becoming a new Employer in Georgia Checklist

An easy to review source of many of the forms, applications, and procedures you will need to be apprised of to ensure compliance with a variety of taxing authorities.  See http://www.hiscpa.com/employee-checklist.htm

John Dillard, CPA of His CPA, PC, 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 www.HisCPA.com A Faith Based CPA Firm Serving Suwanee, Johns Creek, Grayson, Lilburn, Norcross, Tucker, Decatur, Dunwoody, Atlanta, Snellville & Beyond.

Lawrenceville, Lilburn, Atlanta CPA: Don’t Be Afraid to Walk In to an IRS Office

Many locations in your local area offer services to help you with your taxes and questions. We listed a few below:

• Post offices, libraries, and IRS offices can be used to pick up necessary forms to complete your returns and tax filings. Many stores and offices will also have CD’s, journals, instructional documents, and other similar resources to get that can help you through your return and filing. IRS offices usually have the IRS code and regulations so that you can check your tax methods with the location.

• The IRS Taxpayer Assistance offices are open every business day so that taxpayers like you can come into their office and receive personal tax help. These associates will help you to do almost anything related to the IRS and will spend any amount of time with you. Do not be afraid to bring in records if your questions pertain to them so that the associates can look at them. The more information you bring the more the associate will be able to help you with your problems and questions. These are trained individuals who are professionalized to help you. Please use the phone numbers given to schedule an appointment as they receive many requests and inquiries.

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 for Atlanta Taxpayers

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. As an Atlanta CPA we offer free initial consultations for those seeking help with their Atlanta IRS Audit 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. As an Atlanta CPA we offer free initial consultations for those seeking help with their Offer in Compromise 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. As an Atlanta CPA we offer free initial consultations for those seeking help with their IRS Installment Plan http://www.hiscpa.com/installment-plans.html

Atlanta IRS Installment Plans