Accounting News and Notes

Atlanta CPA Amends Income Tax Returns Saving Tens of Thousands

Proudly Serving Lilburn, Alpharetta, Lawrenceville and Snellville for Decades

Often taxpayers feel after they have filed an income tax return that they are etched in stone. Though you want this to be the case as no one likes to tax returns twice, frequently having a CPA critique your past returns, especially if you are a business owner and had returns filed by someone who is not a CPA, is often a great way to “find unclaimed money.” In reviewing past business/corporate as well as personal income tax returns we  have amended returns to reflect:

-Changing to an S Corporation saving approximately $20,000 on one set of returns and $12,000 on another.

-Tax deductions ranging from thousands of dollars of missed tax deductions such as business mileage.

-Thousands of dollars of missed itemized deductions such as cash and property contributions to charity, state income taxes and real estate taxes.

-Failure to claim Head of Household status, which is a lower tax bracket than filing single. Amended return saved tax dollars as well as then being able to claim additional tax credits.

-Numerous instances where we have filed amended personal income tax returns to claim Earned Income Credit, which is a credit allowed for those who have a dependent and make less than certain qualifying income levels. Amended return saved thousands of tax dollars.

These are just a few of the examples of where a CPA can evaluate past returns to “find money” that you have overpaid to the IRS or Georgia for prior year income taxes. Amended returns come in all shares and sizes:

-If you are an S Corporation you file a new Form 1120S, while marking the amended box on the first page of the return.

-If you are a single member LLC, you should be filing the business results as part of your personal return the business information on a schedule C. Therefore, like individual taxpayers you will file a Form 1040X to the IRS and Form 500X to the state of Georgia.

-Also when reviewing prior tax returns, one can look for deductions, strategic and operational issues that one can use to mitigate future tax bills and to improve overall company profitability.

Tax law only allows for returns to be amended for three years after their initial filing date. Thus, it is essential to ensure that all returns that you have any questions about whatsoever should have them evaluated by a competent and experienced CPA who is well versed in IRS tax law and representation issues. Unfortunately if you have not amended your return after three years, tax law does not allow you to receive a refund of any type or to even apply any refund application to any other outstanding monies due either the IRS or that state of Georgia.

John Dillard, CPA of His CPA, PC, 1940 Woods River Lane,   Phone 770-814-9304   http://www.hiscpa.com/    http://www.john-dillard.com/

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

 John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond

Atlanta CPA on Tax Tips to Reduce Your Personal Tax Bill

Never assume that what you have been doing for the past several years is in your best interest to continue. As personal tax situations, personal goals, kids go off to school, retirement, kids marry and tax law changes, staying abreast of what you should be doing to ensure that you pay only your lowest legal tax. These tax tips to reduce your personal tax bill will help remind you of the many tax planning opportunities available:

Tax Brackets. Knowing your Tax Filing Status, Effective Tax and Marginal Tax Rates are essential components of good tax planning and financial management. There are four tax filing status with the lowest to highest being Married Filing a Joint Return,  Head of Household., Single and Married Filing Separately. Your effective tax rate can be calculated by taking your total tax bill and dividing it by your taxable income. It is suggest that you know this as a percentage calculation of your personal income tax bill itself and then a calculation including your FICA/Medicaid charges as well. Your marginal tax rate is determined by your income and what you tax bill would be on the earning of any additional tax income earned. Accordingly as the U.S. Tax system is a graduated system (i.e., your taxes as a percentage goes up as your income rises), your Marginal Tax Rate will most always be higher than your Effective Tax Rate.

Retirement Plans. Planning for your retirement is essential to a well thought out and practical plan for the future. Understanding Traditional IRA’s, Roth IRA’s, 401K Plans, Simple/IRA’s, SEP’s and Defined Benefit Plans will do much to ensure that you have the maximum set aside upon the date of your retirement. The IRS has the above and many other qualified retirement plans that should be evaluated to plan for your future. If you are a business owner the options are even greater, but one needs to be sure to keep in mind that all employees who qualify (under IRS tax rules and guidelines) will be able to participate as well.

Managing/Tracking Your Itemized Deductions. Since the mid 1980’s Congress did  much to limit what can be claimed as an itemized deduction on an individual taxpayers personal return. However there is still much a taxpayer can legally do to help keep their tax bill as low as legally possible. Taxpayers who own their own home can deduct mortgage interest and real estate taxes. Also advalorem taxes (property taxes on cars), cash and charitable contributions to qualified charities are also itemized expenditures taxpayers can utilize. Thought limited by tax law it is also prudent to evaluate if you might have sufficient qualifying monetary expenditures in either medical expenses, unreimbursed employee expenses, and casualty losses.

When planning for one’s long term future I suggest that you retain a wise and experienced Certified Financial Planner (CFP) and a Certified Public Accountant (CPA) who can work together as a team to plan for your long term financial needs.

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“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

What Clients of John Dillard CPA Have to Say…Saving Thousands of Dollars via an Offer in Compromise by Helping Atlanta Business Owners & Individuals

We strive to do much more than just prepare your taxes. We look to understand your business from the bottom up, by looking at all facets of your business. Our goal is to help you ensue your success and  to come alongside you in your endeavors to succeed as an entrepreneur. Though we do not expect it, some of our clients have invited us to treasured and special family events.

At His CPA we work to retain the best CPA’s on our staff and whose desire is to serve the Lord, by serving You, our client. Our motto of “Serving Him…by Serving You, One Tax Return at a Time” is not just a watchword but a legacy. Serving clients by the “Golden Rule” is where the “rubber meets the road.” This is just part of a series of letters where we highlight just a few of the recommendations and client letters we have received. Call us today and put our staff to work for you making sure you pay your lowest legal tax, avoid unnecessary penalties and long range planning. We look to provide CPA and Tax Return Advice you can trust.

November 28, 1994

Dear John,

So often in today’s hectic business environment, we do not take time to express our thanks and appreciation to an associate after a job well done.  I have recently been guilty of this with you.  Your dedication to my case and the persuasively documented case you built saved me thousands of dollars and definitely merits a special letter of thanks.

Actually the Offer in Compromise, was only the beginning of a continuing flow of pertinent information and expert advice from you concerning my business and tax affairs.  It has helped me tremendously knowing that you understand my financial needs and that you always follow through.

Looking into the future, I am confident your abilities and dedication will support me as my business and tax needs continue to change.

Again John, I really appreciate your help and I look forward to a long association with your firm.

Truly Yours,

Michael Durkee

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 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!”

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, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales and Bookkeeping.