What is Reasonable Compensation?

toy shopping cart with american dollars inside purchasing power and living wage concept

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.  […]

IRS Notice CP2000: What is It?

auditor or internal revenue service staff business women checking annual financial

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.  […]

Tax Debts: Post-Covid Update

In response to the economic fallout from COVID-19, the IRS suspended attempts to collect back taxes through liens, levies, seizures and other methods. We have learned that the IRS is now restarting the collection of back taxes. There are already more than 25 million taxpayers in America that are in trouble with the IRS, and […]

How IRS Audits Work [Updated for 2021]

IRS audits are fraught with mystery. Yet, IRS audits generally unfold in a routine manner. It is worth taking time to remove the mystery so people know what to expect and how to deal with it. The reaction that we see among clients in our Atlanta, Georgia accounting firm is nearly universal:  The clients receive […]

Payroll Tax and Penalties

Business man hammering a piggy bank

Introduction to Payroll Tax. Payroll tax includes the income tax and Federal Insurance Contributions Act (“FICA”) taxes that are withheld from every employee’s paycheck.  It also includes the employer portion of FICA.  The business pays these taxes to the IRS on a weekly, monthly, quarterly or annual basis.  The frequency depends on the size of […]

Joint Tax Return Issues

Watch our YouTube video on issues relating to Joint Tax Returns.  Or read on for more details! Filing a Joint Return Filing a joint tax return allows married taxpayers to enjoy favorable tax rates. However, this benefit comes with a cost. The cost is that spouses who file a joint tax return have joint and […]

Who Does the IRS Audit?

The IRS Audit and the receipt of IRS notices seem to be becoming more and more prevalent among Atlanta taxpayers. The IRS regularly examines third party documentation to identify income that is missing on tax returns.  Most commonly, this includes 1099’s and W-2’s.  This the cause of millions of IRS notices that go out to taxpayers every […]


If you are a business owner, you know how important it is to track your expenses. You are probably also aware that keeping track of your money is becoming more and more difficult in our fast-paced digital world. The online receipt capture feature by QuickBooks Online makes this as easy as possible. When it comes […]


Swiss Francs

With the job market in tatters in 2020, small businesses are popping up all over Atlanta. However, hobby loss rules are a trap for new business owners.   The IRS is focusing more and more on hobby loss audits.  Fortunately, there is a lot that the new business owner can do to stay out of IRS […]