IRS Non-Acceptance of S-Corp Election Letter (LTR3853C)

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IRS Rejecting your S-Corp filing?

There were a little over 4.1 million S-Corp tax returns file in 2011 (the most recent year for which this data is available from the Internal Revenue Service). There are several reasons for a corporation to elect to be treated as an S-Corporation as you can see HERE. The primary reasons for electing S-Corporation status revolves around the tax benefits of doing so. One of these benefits is limiting the amount of corporate net income subject to payroll/self-employment taxes.

There are a number of S-Corporation elections that the IRS does not process. Perhaps the election forms were accidentally not filed, or the forms were not filled out correctly, or the forms were lost in the mail. If the IRS receives an S-Corporation tax return but has not accepted an S-Corporation election for the corporation filing the return, the Service will send a notice (LTR3853C) informing the corporation that an S-Corporation election has not been accepted for the entity.

The potential tax consequences of this “non-election” can be great. Fortunately, the IRS provides a process by which it will accept a retroactive S-Corporation election. If you are concerned because you have received an S-Corporation election notice from the IRS, please contact us. Mark Bryant, CPA experience in handling this issue has saved his clients time and money.

Call Us Today, 404-513-0765. During your initial call with Mark Bryant, CPA we will let you ask as many questions you need to determine if we are a good fit for you as a business person and your business. We’ll also have a few questions of our own. We have been told we are the best CPA Atlanta firm in creating a tailored made service plan and handling multiple sub files under one account. So if you are self employed and own two businesses and a rental property and one of those businesses is an LLC – no problem. We are experienced in a full range of business support services.

Georgia CPA Accounting for Homeowners Associations

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Get Mark Bryant CPA Accounting Services Before Making Homeowner Association Capital Expenditures

by Mark Bryant

In Atlanta and across Georgia, Homeowner’s and condominium association taxation is a specialized area of the Internal Revenue Code. These associations, along with a few others, are all what are now being called Common Interest Realty Associations (CIRA). While a basic homeowner’s association return can be relatively simple it is still a good idea to have a basic understanding of CIRA tax law. If not, there are certain beneficial tax treatments that may be missed.

One of the areas that can be used to benefit homeowner’s associations is the use of capital contributions. According to Internal Revenue Code Section 118, “In the case of a corporation, gross income does not include any contribution to the capital of the taxpayer.” The obvious meaning of this section of the IRC is that capital contributions can be excluded from income of the association.

As with most items that have beneficial tax consequences, the Internal Revenue Service requires proof that an item fits the categorization the taxpayer has given the item. There are several things a homeowners’ association can do to ensure the funds qualify as a “capital contribution”. We can review your situation and guide you every step of the way.
FREE CONSULTATION for accounting for homeowners associations.

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Following is a list of actions the Board of Directors can take to ensure that funds qualify as capital contributions:

1. The purpose of the assessment must be capital in nature. It would need to be shown, typically in the minutes of Board meetings, that the Board approved the capital assessment and expenditures.

2. Members must have advance notice as to the intent of the purpose of the contribution.

3. The money contributed must be accounted for as a capital contribution.

4. The money must be held for that purpose and for no other purpose.

5. The money must be held in separate bank accounts from the operating
(non-capital) monies of the HOA.

6. The money must be spent for the intended purpose.

7. The money must increase the capital account of the members of the HOA.

Funds that qualify as a “capital contribution” are not taxed and can be carried forward to be used for expenditures that are capital in nature.

This list is not an all or nothing list. The more of these things the condo association does, the better. Also, some items on this list are more important than others. Having a separate bank account and proof that the Board approved making capital expenditures and required capital contributions are items that should be present.  To discuss your specific set of details and to have our team review your course of action call Mark Bryant, CPA  404-513-0765

 

  • Mark Bryant, CPA Atlanta, Georgia Accounting Services
Mark Bryant, CPA Expert Accounting Services
Even filing a simple tax return can be complicated in these times. It can be easy to overlook the credits and deductions you may deserve which, in the end, can end up costing you money. Working closely with an experienced CPA firm that is equipped to handle your tax needs can make the difference between owing money and getting some back come tax season.

  • Home Owner’s Association Accounting & Tax services provides extensive and competent financial assistance to your HOA board.

    Home Owner’s Association Accounting services include:

    - Tax Return Preparation
    - Monthly Accounting Services
    - Financial Statement Preparation

    Mark Bryant, CPA
    2300 Windy Ridge Parkway
    Suite 520N
    Norcross, GA 30339
    Phone: 404-513-0765
    Fax: 770-456-5397

    Norcross Tax Services for Home Owners Associations

  • Are Your Books a Complete Mess? No Problem.

    If you own a small business or you are an independent contractor and haven’t kept up your bookkeeping, don’t worry. We can help you. We’ll prepare your bookkeeping for the year, prepare a full Schedule C, as well as your personal income tax return. Then we’ll help you set up an easy system that allows you to keep your books in shape for next year.

    Mark Bryant, CPA
    2300 Windy Ridge Parkway
    Suite 520N
    Norcross, GA 30339
    Phone: 404-513-0765
    Fax: 770-456-5397

    Norcross Tax Services for Individuals

  • Our tax preparation and tax planning services can help you to take advantage of today’s changing tax laws and ensure you a better tax return. Even filing a simple tax return can be complicated in these times. It can be easy to overlook the credits and deductions you may deserve which, in the end, can end up costing you money. Working closely with an experienced CPA firm that is equipped to handle your tax needs can make the difference between owing money and getting some back come tax season.

    Mark Bryant, CPA
    2300 Windy Ridge Parkway
    Suite 520N
    Atlanta, GA 30339
    Phone: 404-513-0765
    Fax: 770-456-5397

    Expert CPA Business Tax Services
Mark Bryant, CPA Business Consulting
Starting a new business? Not sure how to structure? Sick of paying through the nose for being a captive 1099? Call Me Today.
404-513-0765

  • We help new businesses get a leg up from the start by structuring the proper business entity. But what if you have been in business for awhile? We can seamlessly switch if it makes sense. Call Me Today. 404-513-0765

    Choosing The Right Business Entity
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IRS Resources for Norcross GA Business Taxes

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2014irsresources

It’s Spring in Atlanta GA and Tax time is in full swing.  As a business owner you could find yourself in several categories.  First, you could a well-oiled machine and may not need our services because you have a fully staffed accounting department.  For everyone else, you exist in various levels of anxiety.  Are my books in order?  Am I overpaying my taxes by “saving money” and doing them myself?  Am I up to date with all the tax rules that may put me at risk of submitting an incorrect return? Well, read on future client because you are not alone.

There are plenty of companies offering tax services in Atlanta GA and with good reason.  Business taxes, whether in Atlanta GA or elsewhere, are a sizable portion of the budget and they are increasingly complex.  Despite what some people may think, the CPA lobby does not relish the complexity as much as you would think.  It makes our jobs more difficult as well.

At Mark Bryant, CPA, we are more than just a tax prep solution.  We are a business solution.  Mark Bryant, CPA can review your business structure to make sure it’s the best Georgia business entity for you.  We can be a part of your monthly accounting support team where you can see as much or as little of us as your budget and needs dictate.  We can handle all tax preparation and filings for you as well.  You see, tax preparation is not just the act of remitting taxes before a deadline.  It is an important overall business activity that needs to be evaluated on a continuing basis.  If handled correctly, “tax time” is not as nearly as stressful and the results to your bottom line not only pay for our services but also show a net increase.

No matter how far behind you are on your taxes or how messed up your books are at this point, we can help.  Already facing problems with the IRS?  We can help there too as approved representation for you.  Lucky enough to have detailed books?  We can help reduce your accounting cost by our flexible plans and service levels.  You do not have to choose between outsourcing and in-house accounting any longer.

  • Mark Bryant, CPA Atlanta, Georgia Accounting Services
Mark Bryant, CPA Expert Accounting Services
Even filing a simple tax return can be complicated in these times. It can be easy to overlook the credits and deductions you may deserve which, in the end, can end up costing you money. Working closely with an experienced CPA firm that is equipped to handle your tax needs can make the difference between owing money and getting some back come tax season.

  • Home Owner’s Association Accounting & Tax services provides extensive and competent financial assistance to your HOA board.

    Home Owner’s Association Accounting services include:

    - Tax Return Preparation
    - Monthly Accounting Services
    - Financial Statement Preparation

    Mark Bryant, CPA
    2300 Windy Ridge Parkway
    Suite 520N
    Norcross, GA 30339
    Phone: 404-513-0765
    Fax: 770-456-5397

    Norcross Tax Services for Home Owners Associations

  • Are Your Books a Complete Mess? No Problem.

    If you own a small business or you are an independent contractor and haven’t kept up your bookkeeping, don’t worry. We can help you. We’ll prepare your bookkeeping for the year, prepare a full Schedule C, as well as your personal income tax return. Then we’ll help you set up an easy system that allows you to keep your books in shape for next year.

    Mark Bryant, CPA
    2300 Windy Ridge Parkway
    Suite 520N
    Norcross, GA 30339
    Phone: 404-513-0765
    Fax: 770-456-5397

    Norcross Tax Services for Individuals

  • Our tax preparation and tax planning services can help you to take advantage of today’s changing tax laws and ensure you a better tax return. Even filing a simple tax return can be complicated in these times. It can be easy to overlook the credits and deductions you may deserve which, in the end, can end up costing you money. Working closely with an experienced CPA firm that is equipped to handle your tax needs can make the difference between owing money and getting some back come tax season.

    Mark Bryant, CPA
    2300 Windy Ridge Parkway
    Suite 520N
    Atlanta, GA 30339
    Phone: 404-513-0765
    Fax: 770-456-5397

    Expert CPA Business Tax Services
Mark Bryant, CPA Business Consulting
Starting a new business? Not sure how to structure? Sick of paying through the nose for being a captive 1099? Call Me Today.
404-513-0765

  • We help new businesses get a leg up from the start by structuring the proper business entity. But what if you have been in business for awhile? We can seamlessly switch if it makes sense. Call Me Today. 404-513-0765

    Choosing The Right Business Entity
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Atlanta CPA Helps in Search for the Right Business Entity in Georgia

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selecting the correct business entity structure

Selecting the Right Georgia Business Entity
By Mark Bryant

The business entity structure that you choose when starting a Georgia business entity search for your local business in Atlanta, Norcross, or anywhere in the State of Georgia has a significant impact on the taxes you will pay and the liability that you are exposed to as a business owner. Choose wisely to protect yourself while saving money.  The Georgia Secretary of State is the place where we file, but the discussion should start with Mark Bryant, CPA.

1099 vs. Single-Person LLC

People who work as 1099s pay high self-employment taxes that can eat away at their income. The S-Corporation business entity, in the form of a corporation or LLC, offers a solution to this problem. Benefits of establishing an S-Corporation, as opposed to remaining a 1099 worker, include:

  • Limited liability. The S-Corporation (in the form of a corporation or LLC) structure protects your personal assets.
  • Easy-to-understand tax implications. Net profit or loss flows from your S-Corporation to your personal return.
  • Separation of the entity. The business entity is separate from the individual who sets up the S-Corporation.

LLC vs. S-Corporation

Have you already set up an LLC?  It’s not too late to switch if you need a better format.  An LLC allows you to operate a partnership that offers a limit to the liability you are exposed to, but you may want to consider an S-corporation if you’re growing the business.

Shareholders of a Georgia S-corporation pay lower taxes on distributions than owners of an LLC pay on their income. The line between the entity and shareholders also allows for easier transfers of ownership.

Consulting a local Atlanta CPA is the best method for choosing the right entity to decrease your tax liability.  An experienced Atlanta CPA can evaluate your unique situation to determine the ideal business entity to offer tax savings and to limit personal liability.