Compensation: How Much to Pay Yourself

Maximizing Tax Savings for Entrepreneurs: Understanding Reasonable Compensation for LLCs and S Corporations Chances are you’ve seen something online about the potential tax savings of switching from an LLC to an S Corporation. However, most of these articles and videos gloss over the most important input of this decision – how much to pay yourself.  […]

What is Reasonable Compensation?

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Reasonable compensation is a critical tax issue that owners of S-Corporations must consider. Reasonable Compensation: What is the Problem? Reasonable compensation is the perennial audit issue for S corporations.  What exactly is the problem? Owners of S-corporations are both shareholders and employees.  They are compensated in two ways: The business pays distributions to the owners.  […]

1031 Qualified Intermediary

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During a 1031 exchange, the IRS requires the use of a Qualified Intermediary (QI). The QI is responsible for documenting and managing the process of a 1031 exchange. This article reviews the role of a QI and what to look for when choosing one. Section 1031 Exchange for Real Estate Investors – The Basics Section […]

IRS Rules for Rental Property: The Basics

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IRS Rules for Rental Property:  What You Need to Know The IRS rules for rental property provide many tax advantages for the investor.  In this article, we will talk about the tax basics that every investor in rental real estate should know. IRS Rules for Net Losses from Rental Property Like other types of business […]

Georgia Offer in Compromise

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Georgia Tax Debt Relief The Georgia Department of Revenue allows taxpayers to settle a tax liability for less than the total amount owed.   This is called an offer in compromise and is one of the more popular tax debt relief programs in Georgia.   A similar program is offer by the IRS. What is an Offer […]

The Federal Tax Levy

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What is a Levy or Garnishment? A federal tax levy is the seizure of money or other property by the government to pay off back taxes.  It is sometimes called a garnishment, as in the case of a wage garnishment. Before levies begin, the taxpayer will receive at least 4 letters or notices from the […]

IRS Notice CP2000: What is It?

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What is IRS Notice CP2000? IRS Notice CP2000 is one of the most common IRS letters that we see in our CPA practice.  The IRS mails these notices to taxpayers when information from a third party source (such as a 1099 or W-2) does not match the information the taxpayer reported on their tax return.  […]

Georgia Sales Tax

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Sales tax is an important part of doing business in Georgia.  This includes retailers in the state, as well as businesses selling online or remotely to customers in Georgia.  Sales tax represents a significant tax burden for many businesses, with sales tax returns to be filed as often as monthly.  And the Georgia Department of […]

IRS Audit Basics

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Taxpayers are selected for an audit for a variety of reasons.  Some are chosen due to a document mismatch, such as a return that is missing 1099’s or W-2’s.  The IRS computers usually spot missing documents based on the social security number (SSN) or employer identification number (EIN) on the document.   Others taxpayers are selected […]

Sales Tax Audits

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When the Sales Tax Auditor Comes Sales tax audits are on the rise in most states.  This is due to budget shortfalls of states across the country.  In fact, state auditors are much more aggressive than the auditors at the IRS.  The state has the power to do massive damage to a business as a […]