Atlanta CPA Presents Top 10 Tax Tips for 2010 to Successful IRS Representation

Atlanta CPA Presents Top 10 Tax Tips for 2010 to Successful IRS Representation

Having been a CPA for the better part of three decades and having worked with thousands and thousands of tax returns over that time I have learned that there are several key areas of representation issues where taxpayers struggle and most often fail at addressing key tax representation issues.

Top Ten Tax Tips to Successful IRS Representation

1. Business Tax Returns Not Prepared by a Qualified CPA. Don't underestimate the importance of the CPA designation. Remember, those three letters are awarded only to those individuals who have passed a rigorous two-day uniform national examination. In addition, CPAs are distinguished from other accountants by stringent state licensing requirements. Most states require CPAs to have at least a college degree or its equivalent, but several also require post-graduate work. The most frequently improperly prepared returns I see are business returns signed by a prepare who is not a duly licensed and certified CPA.

2. Improper Entity Selection. Your initial choice of entity is perhaps the most important tax, financial and legal decision you might ever reach. Being well versed in these areas is essential to a wise and prudent decision. Carefully considering the tax effects of your entity choice is essential to getting your business off on the right foot. Being careful to avoid, if at all possible, the double taxation of C Corporations and then selecting the right entity for your business from both a tax and legal perspective is critical. Frequently it is tax advantageous for business setting up initially as an LLC or a C Corporation to make a tax election to convert to an S Corporation for tax purposes, by filing IRS Tax Form 2553.

3. Automobile Mileage Logs. Generally I recommend that all clientele buy their vehicles personally and then turn in expense reports to get reimbursed for their business miles using the IRS's statutory mileage rate. Primarily this is an advantage because it almost always results in a larger tax deduction than if the car were purchased and depreciated in the corporate name. IRS tax law requires all taxpayers to keep a day-by-day log to support the business miles claimed and personal miles utilized. I have found that the easiest place to track and record this information is on my business calendar.

4. Integrity & Value. I had always felt it was my mission to witness to those I came in contact with in both my business and social contacts, but God continued to lay it on my heart that He wanted much more. God is calling wants us to be much more overt, but loving, to share the love of God and to live our live with Integrity and Value for not only the work we do but most importantly with the lives we intersect. As Believers we should all constantly search for opportunities as we are Taking Christianity Into the World.

5. Handling Your Own Audit. A satisfactory and successful audit process will include many factors and variables consisting of, first and foremost, calling your CPA. A CPA, who is familiar with you, your business and tax law is far more apt to successfully close an audit with no changes. Your Certified Public Accountant is the absolute best choice to address your audit and to better represent you and your business's issues to the IRS using both the law and knowledge of your business to your best advantage.

6. Determining Valid Business Deductions. It should be clear from an independent observer that a deduction was incurred for the furtherance of the business, and was a "necessary" expenditure of the business. This would include all expenditure of the company. For all expenditures $75 the IRS requires that a receipt is required.

7. Poor Financials & Record Keeping. Each and every hour of a business owner's day, there are a series of insignificant and important thoughts and directions that directly impact the profitability of a business. Continually you are faced with making a positive impact towards bringing your business closer or further away from your goal. A company's financial statement is the measuring stick by which you are able to gauge a company's progress along the business continuum and are able to accurately measure the distance between where you are and where you want to be.

8. Utilization of a Payroll Service. Payroll is the largest and most burdensome administrative responsibility for a business owner. Whether you have one employee or a thousand, both the IRS and your state has a myriad of payroll reports and deadlines for which you are required to complete. Unfortunately there is not a one-stop shop to pay and report all of the varying deadlines and taxes. However, there is a solution that makes the reporting of payroll dramatically more seamless than if you strive to go it on your own.

9. Using Tax Software. If you have ever performed your own major surgery without being a duly licensed and trained doctor or if you have ever attempted to fly to the moon without being either a highly skilled pilot or astronaut then you might want to fly full steam ahead. As a CPA I have learned and continue to learn that I do not know what I do not know and that buying technology to help me get there faster is akin to using speed dial to dial wrong numbers faster. Just as the tools of a skilled surgeon will not enable me the skills, knowledge, verve and wisdom of a Board Certified Physician, neither will a software program make you a skilled CPA: Never Underestimate the Value.

10. Talking to the IRS. Most often it is advantageous for the CPA alone to meet with the IRS so as to remove any emotional issues, which might otherwise surface and dampen the ability to successfully and quickly resolve the process. Frequently when taxpayers strive to handle their own audit by themselves they fail to sense and adequately address the issues the IRS request; thereby causing themselves unnecessary hardships and economic loss.

Tour our on line articles to help you get informed about IRS Representation Issues

http://www.hiscpa.com/irs-selection.html   Atlanta/Marietta CPA Teaches How Audits Are Selected
http://www.hiscpa.com/irs-audit.html  Gwinnett/Forsyth CPA Advises on How to Handle IRS Audits
http://www.hiscpa.com/working-with-the-irs.html  Atlanta/Cobb Christian CPA on IRS Representation
http://www.hiscpa.com/paying-taxes.html  Gwinnett/Suwanee CPA on Paying Your Taxes and Extensions
http://www.hiscpa.com/avoiding-audits.html  Duluth/Cumming/Forsyth CPA on How to Avoid IRS Audits
http://www.hiscpa.com/offer-in-compromise.html  Atlanta/Cobb CPA Advises on Offer of Compromise, Back Taxes and IRS Problem Resolution

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/  http://www.john-dillard.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 His CPA PC...A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits

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