We Prepare Tax Returns!

We prepare most type of tax returns:

Individual. 

S Corporation.

C Corporation.

Partnership.

Payroll.

Amended.

Gary Bode, CPA is a Master's Degreed, nation wide accountant offering tax and business services. Member of AICPA and NCACPA. Our virtual office provides excellent service to long distance and international clients. Call (910) 399-2705 for a free phone consult.

Client Video Testimonials

Click here to watch some of our clients in their video testimonials!

Client Testimonials

I became totally and permanently disabled after a working for 44 years. I returned to college late in life (while working full-time) to fulfill my dream of becoming an RN and at that time found it necessary to secure student loans. Three years after being declared totally and permanently disabled my student loans were discharged. In January 2013 we received a 1099-C form declaring said student loans that were discharged however that amount could be considered as income for 2012. This was a large amount of money and we live on two pensions and social security income.

I started looking on the internet for information regarding 1099-C and felt that this was something that we could not handle alone. I made phone calls locally to a very reputable tax group in a city near us and they said it would cost $500 for an appointment and that they really prefer to do corporate taxes and they referred me to a local person who had worked for them at one time, we called and explained the situation and an appointment was made and then the comment was made that "I will have to do some research on this" and flags immediately went up and we called back and cancelled that appointment. I had been researching the IRSwebsite and every place else I could think of and I was not comfortable doing our own taxes this year. We called another local tax preparer that we had used in the past and made an appointment, however prior to the appointment, while still seeking information regarding our situation,

I came across a website for Gary l. Bode, MSA, CPA, PC in Wilmington, NC. I called Mr. Bodeand explained our situation and asked if he could help. He spoke very knowledgeably regarding the situation and stated that yes; he felt he could help us. As Mr. Bode was in North Carolina and we were in New York I scanned all of our documents including back-up documents for all of our claims and forwarded all to him. Mr. Bode kept in touch with us via email; we have spoken on the telephone several times and have become very comfortable with his knowledge and professionalism. Also, as I am a true "worrier" I have continued looking into information regarding our tax situation and I came upon another web page for Mr. Bode that included testimonials which spoke of his experience with this type of tax situation as it became prevalent during the recession. This reinforced in our minds that we had made the right decision in hiring this person as our tax preparer.

I share all of this as our taxes are now ready to be filed (we do owe tax for 2012 but not the astronomical figure we thought we were facing), and we are confident that they have been prepared with the utmost care by a gentleman who has an excellent working knowledge of the situation we faced and the tax laws that were applicable to said situation.

 

Bill and Carol

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Even though Gary enjoys helping colleagues, we no longer provide free consults to other tax preparers. He's happy to consult on an hourly billing basis if our schedule allows.

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CPA Accountant discusses Amended Tax Returns | Form 1040-X Considerations

Amended tax return CPA explains amending tax returns with Form 1040-X

Amending tax returns with Form 1040-X seems straight forward. Bu if you run into problems, consider giving us a call for a free consult. Our virtual office means distance isn’t a factor. (910) 399-2705.

Amended tax return CPAs factor in multiple issues when considering to file Form 1040-X.  The type of amended tax return to file depends on the original return being amended. Amending a personal tax return requires the use of Form 1040-X. Many folks handle Form 1040-X themselves, but sometimes the underlying changes presented on Form 1040-X are complex.

Here are some tips I’ve learned as a CPA accountant. If you get uncomfortable preparing Form 1040-X, consider giving us a call for a free consult.

Should I file an amended tax return?

  • Tax refund?
    • Amended tax returns can generate refunds.
    • Every Form 1040-X CPA and IRS agent has stories about huge tax refunds being lost.
    • The IRS side of the story is usually income based and demands more tax.
    • Your side of the story is legitimate deductions and tax credits.
  • Not if the original return just had math errors.
  • Not if you agree with the IRS calculation on Notice CP 2000. You just pay the IRS demand without amending the tax return.
  • Amending tax returns should be cost-effective. Don’t stand on principle over a trivial amount.

Understand the underlying tax issues on Form 1040-X

Let’s say you left off a Form 1099-C from your original tax return. You probably didn’t get a copy, because the bank had an old address. But the IRS received their copy! The cancelled debt on Form 1099-C becomes taxable income, so the IRS demands taxes on the entire amount. However, we’re generally able to exclude some or all the debt cancellation income through Form 982. It pays to thoroughly understand everything about Form 982 before amending a tax return with Form 1040-X.

Bulletproof the Amended Tax Return

  • It seems logical the IRS scrutinizes Form 1040-X closely.
  • Document every figure on Form 1040-X in case you’re audited.
  • Form 1040-X requires a statement about why you’re amending the tax return. Craft this carefully.
  • Amended tax returns generally need supplemental documentation.
  • Amended tax returns are hand processed. Try to anticipate what a skeptical IRS Agent wants to see in the first two minutes of processing.

“When amending tax returns, know when to punt. If the tax issues are complex, or the tax/refund amount is large, consider using a Form 1040-X CPA.”
– Gary Bode, CPA accountant

Does amending a tax return raise red flags with the IRS?

It depends. Generally Form 1040-X just presents some information left off from the original return, usually in response to an IRS Notice CP 2000 or Letter 566. So there’s just added tax, penalties and interest. But if your original tax return was fraudulent, it’s possible that amending it would raise tax audit and/or criminal issues.

Should I just hope the IRS won’t catch me?

The IRS has great success with its Correspondence Audits. These audits compare the information the IRS received against your tax return. Their databases churn out computer generated notices. The IRS has three years to catch you, but they can find ways to increase that time period. My perception is that the IRS can catch most amended tax return issues, but they don’t have the resources to pursue them all.

Self incrimination on amended tax returns

Clients sometimes open up a can of worms when amending their tax returns. Don’t expand areas of IRS scrutiny on your tax return or open issues on other tax years.

Don’t forget about the State!

If your State requires an income tax return, the IRS informs them there’s been a change. Include potential State consequences into your amended tax return strategy.

Pull your IRS transcript:

Here’s a true story: A Client received IRS Notice CP 2000 showing the IRS received a Form 1099-S reporting a real estate sale for the last tax year. So they proposed $120,000+ more tax. The Client did omit the real estate transaction on her original return. I pulled her IRS transcript. The IRS also issued a Form 1099-C reported cancellation of debt, associated with the real estate transaction. My point? The IRS may not ask about all your amended tax return issues at one time. As it turns out, it was a rental property sales that generated a loss. She got a refund and has excess loss to carry over to 2013.

Like what you read?

Our virtual office can serve you regardless of your location. For a free phone consult call (910) 399-2705. 

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