Duluth/Gwinnett CPA: Critiquing Corporate & Personal Income Tax Returns
When your CPA is preparing your corporate and personal income tax returns, it is at this point that a teaching CPA has the best opportunity to teach and educate clients. It is at this time when a client ask many specific questions relative to their corporate and personal income taxes, expenses, and deductions where a CPA can do much to help educate and therefore elevate a clients understanding of how potential tax deductions affect and influence their return. Having served a CPA to Atlanta business owners for decades, it has proven again and again that taking the time to teach a client will pay both short and long term benefits for both the client and the tax preparer. CPA's who 'hurry through" to prepare the return lose this valuable opportunity to truly server their client. Below is a sample letter that might be used.
Below are Critiques to Data For your Personal Income Tax Return:
-It appeared that you had substantive amounts of mileage that she was not reimbursed by your employer while you are an employee. Please be advised that tax law requires that you have a by-day log to support the business miles claimed. FYI, tax law has long required taxpayers to keep a by day log to support business miles and that the IRS is intensifying their collection efforts and enforcing documentation requirements to substantiate business mileage claimed. To learn more visit http://www.hiscpa.com/autos.html
-You did not forward your original W-2 in the package so be sure to attach it to the returns when I forward.
-Please mail to me copies of the signed receipts for the property contributions to charity and a detailed itemization/valuation at flea market/garage sale prices. For details on documentation requirements for property contributions to charity see http://www.hiscpa.com/blog/2009/03/20/atlanta-cpa-on-understanding-tax-rules-for-property-contributions-to-charities-wwwhiscpacom/
-Please advise what you paid in advalorem/car tag taxes.
-To ensure that you obtain all of your legal business deductions visit http://www.hiscpa.com/maximizing-deductions.html
-For the Office Equipment please let me know if you have any individual items over $1000, as these will be capitalized and depreciated for tax purposes. Please be reminded that to qualify for Section 179 Depreciation that your business has to have profits equal to at least the Section 179 Depreciation claimed. Otherwise a fixed asset should be depreciated over its useful life in accordance with tax law rules and regulations.
-For your cash donations please give me a recap by organization being sure that you have a year-end receipt for all amounts claimed.
-For the $3000 Office Rent/Utilities please advise how much is rent and how much is Utilities. As discussed about your prior returns, please advise what percent of your home is solely used for business use. For general advice on the home office deduction visit http://www.hiscpa.com/home-office-deduction.html
-Please be advised that as you are using car mileage that all car expenses (including gas, maintenance, insurance, and payments should be paid personally) and therefore not listed as a business deduction.
-Please be advised that business gifts are limited to $25 per recipient per year.
-Please advise what the $1,000 check to the IRS was for, whether an estimated tax payment for the current tax year or for prior tax years.
To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html
Duluth/Gwinnett CPA: Income Tax Preparation, Financial Statements & IRS Representation
We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time/Virtual CFO/Controller, Business Planning, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.