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.

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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 explains Proposed Changes on IRS Notice CP 2000 | Tax Audit

IRS Notice CP 2000 proposed changes

The proposed changes on IRS Notice CP 2000 usually mean additional tax, penalties and interest. (910) 399-2705.

CPA accountants often explain IRS Notice CP 2000 to new clients. Especially the “proposed changes” part of CP 2000. I know many folks deal with the IRS themselves. So here are some tips I’ve learned over the years, presented in no particular order.  In plain English the “proposed changes” usually mean the IRS wants you to pay more tax, interest, and penalties on a tax return already submitted.

IRS Notice CP 2000 is an IRS Correspondence Audit: Proposed Changes become an IRS Demand

Why did the IRS send Notice CP 2000? They noticed some discrepancy in your tax return. CP 2000 explains the IRS’ position and then proposes changes to your tax return. Sometimes it’s good news, but usually CP 2000 proposes you pay additional tax, interest, and penalties. Even though Notice CP 2000 uses polite language, it’s an IRS correspondence audit. If you do nothing, the proposed changes on CP 2000 show up on future Notices and eventually become an IRS demand.

The IRS often doesn’t have all pertinent information

The IRS assumes Notice CP 2000 is correct. Why? CP 2000 uses the information the IRS has on file. Most of that information is income based, like W-2s, Form 1099-MISC, Form 1099-C, Form 1099-R, Form 1099-K etc. Remember employers and banks send a copy to the IRS. Typically the Client didn’t get their copy, so it’s not on the tax return. Now, the IRS proposes you pay tax on the entire amount. But let’s say they received Form 1099-C, Cancellation of Debt. We often exclude some or all of that cancelled debt income through Form 982.

“Amending your tax return deals with the IRS proposed changes by presenting the associated deductions and tax credits the IRS didn’t factor in. In some CP 2000 cases the proposed change not only disappears, but generates a refund. Strange but true.”
– Gary Bode, CPA accountant

IRS Notice CP 2000 tips:

  • Never assume the Notice is correct. Check it out carefully. Hey, the IRS makes mistakes too!
  • Deal with IRS Notice CP 2000 somehow. The IRS won’t go away.
  • Don’t panic. Sometimes you can decrease the IRS proposed changes on CP 2000 by submitting additional information.
  • Take time to understand the tax issue involved. Pull out your copy of the return.
  • Don’t be nasty to IRS employees.
  • Determine if you have other tax issues in the same return. We generally pull your IRS transcript.
  • Don’t open up other tax issues or expand the audit to extra years. One Client argued she had prepared all her other Form 1040s the same way so she knew IRS CP 2000 was wrong.
  • Ask to have penalties abated. If you have a sob story, tell it to the IRS.
  • If you do owe, consider using an Offer in Compromise to cut the amount the IRS will accept as full payment.
  • If you owe, the IRS offers Installment Agreements.
  • If you owe, consider obtaining currently un-collectible status with the IRS.
  • Remember the IRS informs your State when they change a tax return. Be prepared.
  • Don’t stand on principle. Sometimes it’s more cost-effective and less stressful to just pay the IRS, even if they’re wrong.

Our virtual office means we can help you with IRS Notice CP 2000 no matter where you live.

We offer a free phone consult on IRS Notice CP 2000. Usually, that solves the problem and folks handle the IRS themselves. But when we take on case, it’s usually cost-effective.  (910) 399-2705.

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