John Dillard is an author and Certified Public Accountant. To See how he takes Christ along with him to work visit www.HisCPA.com
Posted 4/2/10 at 8:03 AM | John Dillard
Atlanta CPA Advises America's S Corporation Owners on Deducting Tax Losses
Although there is no income tax paid by as S Corporation when the annual tax return is filed to the IRS. However, as a part of the corporate return which is prepared, a Form 1120S, there is an attached schedule which shows each owners respective ownership percentage and via a Form K-1 for which each shareholder should reflect on their personal return. K-1 profits, losses, and shareholder distributions are all required by tax law to be issued based upon the each shareholders ownership percentage. In order for losses to be deductible a shareholder has to have a positive tax basis, which is a component of past profits, losses, and loans to and from the business. If a shareholder has no basis to cover losses reported on a K-1, they are by tax law considered to be "suspended losses" and can be rolled forward to future years when the shareholder has positive basis, which can be created by future years profits or the shareholder loaning money to the business. Below is a sample letter we might send a client to ensure that to the extent legally possible, that tax basis is maintained in an S Corporation in order to take S Corporation losses:
Posted 4/1/10 at 4:54 PM | John Dillard
Atlanta CPA on Effective and Directed Communication to Address IRS Tax Problems and Back Taxes
Dealing with the IRS in addressing tax issues requires several things including first a good CPA who is well versed in tax law, has a proven and well documented record of success in dealing with the IRS and a dogmatic pursuit of helping taxpayers ensure they pay their lowest legal possible tax. Below is a example of such a piece of correspondence geared towards addressing open and unpaid back taxes and developing pragmatic opportunities for all involved to resolve unpaid taxes:
Posted 4/1/10 at 8:03 AM | John Dillard
Atlanta CPA Firm Presents Free Tax/Business Information to America Business Owners and Entrepreneurs
If you need tax news and information for your Metro Atlanta Business, see the counsel and advice of a CPA who has been serving Metro Atlanta for decades. In additions to the 21.184 visitors to our web site in March alone there was 18.247 who visited our Blog gaining Accounting News & Tax Information to help Atlanta Business Owners & Entrepreneurs manger their business, financial and tax affairs. Offering Tax News 24/7, His CPA PC makes the complex understood, while looking to serve his fellow countrymen. At present levels it is anticipated that by the end of 2010 that approximately 250,000 visitors will have visited www.HisCPA.com during the year.
Posted 3/31/10 at 10:21 AM | John Dillard
Atlanta CPA Advises America's Believers/Christians on Top 10 Reasons Your Business Should Retain A Christian CPA
Every year the IRS selects approximately one to two percent of all tax returns filed. The U.S. tax system is a voluntary compliance system where it is a taxpayer's responsibility to determine and file their accurate and just tax returns. In this process frequently taxpayers will create environments, which make the IRS more apt to review and audit a return. Your intent in filing a return should never be to stay away from or not deduct a valid deduction, however your end result should always be to file a return that is accurate and complete in all respects and for which you have adequate and clear documentation. By following these steps below you will find insight that will help you avoid unnecessary audits, additional time and stress, and additional assessments for interest and penalties.
Posted 3/30/10 at 5:17 PM | John Dillard
Atlanta CPA Teaches America's Business Owners the First Decision May Be Your Most Important
Incorporating Your Business: Understanding and Properly Utilizing 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. Understanding many of the basics of the start of the incorporation process will do much to ensure that you are well-versed and able to make wise and informed decisions. Below is a sample inquiry we might receive from an entrepreneur who is looking to set up/incorporate a new business:
Posted 3/30/10 at 10:25 AM | John Dillard
Atlanta CPA on Surviving an IRS Audit of Your Business & Personal Income Taxes
If you just opened your mailbox and much to your chagrin you have received an IRS notice. Your immediate reaction is one of fear and dread as your pulse races and you are not certain of what to do next. Although most certainly your initial reaction will be as described, there is a different path to resolving all audit issues to yours and the IRS's satisfaction and to close your audit with no additional monies due, assuming of course your return has been properly prepared. Below is a sample letter we might receive from a taxpayer in the throes of addressing an IRS tax audit:
Posted 3/29/10 at 9:54 AM | John Dillard
Atlanta CPA on IRS Installment Plans/Back Taxes/Offer in Compromise
While you are in the throes of handling IRS tax issues and trying to evaluate between an Offer of Compromise or an Installment plan, frequently the options look bleak, as often they are. There are options for taxpayers to look "outside the box" in looking to solve your IRS tax problems. Knowing the ins and outs of varying programs will do much to help you know what is in your best interest.
IRS Form 9465 for IRS Installment plans are essentially long range, but are frequently the most convenient way to solve an IRS tax bill short term. However this option is frequently the worst option financially as interest and penalties continue to be assessed thus ensuring that you continue to owe even more additional monies rather than less. Before looking to set up an IRS Installment Plan, you look to other options available such as a loan from a bank, friends or family members.
Posted 3/28/10 at 8:44 AM | John Dillard
Atlanta CPA Encouraging America's Believers to Trust in Your Future...Taking Christianity Into the World
I have learned that though the world will do what it can to beat me down, I will not be deterred nor driven away from the Holy Spirit's prompting on my life.
Jeremiah 29:11 For I know the plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future.
Posted 3/27/10 at 7:55 PM | John Dillard
Atlanta CPA Encourages Believers Throughout America to Support & Encourage Others...Taking Christianity Into the World
Psalm 1:1-2 Blessed is the man who does not walk in the counsel of the wicked or stand in the way of sinners or sit in the seat of mockers. But his delight is in the law of the LORD, and on his law he meditates day and night.
One of the talents God alone has blessed me with is one of exhortation. Over the last thirty years of my life, my focus has been predominantly on the New Testament. As I have grown both in my walk and my study of the Bible, I have discovered the richness, body and compassion of the Old Testament. No longer do I see an angry God but how much he loves each and every one of us deeply and whose undeniable commitment to his people is frequently missed amidst many of the Old Testaments tribulations.
Posted 3/26/10 at 2:52 PM | John Dillard
Atlanta CPA Presents Redeeming Grace...Getting Real With Our Faith...Taking Christianity Into the World
"How telling is the mirror? How often do we look and see what God would have us see? Although the mirror reflects our true physical self, it does not reveal the person behind the mirror and try though we might, we are often confused as to who we really are. In our own efforts to believe the best about ourselves we often fail to see the little spots and blemishes which stand in the way of our image being like that of Christ. Though we live in our fallen earthly bodies we are to model and strive for a life that resembles who He would have us be and not what society would tell us.
Almost always when we look into the mirrors of our own souls we fail to see the whole truth; a truth that we do not live our lives with the love and joy God gives us. We often fail to see our failings that can only be filled by the blood of Calvary. By going to the cross daily in prayer we find our God, our Abba Father; a God to whom we can crawl up on his lap and be filled with his peace and his love. God did allow man to choose and unfortunately we do not use wisdom making life choices. I wish Adam had chosen a different course and obeyed but in his pride Adam failed and made a most unwise choice for us all. Adam's choice still haunts all of us today but yet it is a choice we are nonetheless born into his original sin. Although we are often dismayed by the legacy Adam left us, we are destined to share in it nevertheless.