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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Gary,

I would like to thank you for your time in helping me with this issue of tackling the exclusion of my 1099-C income from this years taxes. The Form 982 that the IRS makes you file is very confusing and makes you want to beat you into submission however with your guidance I was able to quickly and easily get through it and on top of that exclude 100% of the cancellation. I will suggest your site and assistance to anyone and everyone.

Sincerely,

Keith, CPA from CT

Keith

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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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Form 1120-S CPA discusses Tax Court decision that keeps Roth IRAs from being Shareholders in S Corporations

Form 1120-S CPA discusses an S Corporation Tax Court case

Gary Bode, CPA: My firm operates as an S Corporation, so you know I stay on top of developing issues. For a free initial phone consult please call (910) 399-2705.

The Ninth Circuit Court of Appeals upheld a Tax Court case stating that Roth IRAs cannot be shareholders in an S Corporation. While the Ninth Circuit has limited national scope, the west coast, Form 1120-S CPAs worry this decision will eventually become national, perhaps even adding prohibitive wording to the underlying Revenue Ruling 92-73.

Traditional IRAs are specifically mentioned as ineligible to be S Corporation shareholders in Revenue Ruling 92-73. And understandably so, since S Corporations are pass through entities whose profits are taxed currently through their shareholder’s Form 1040. Traditional IRAs defer taxation until retirement. And yes, I understand the differences between a traditional IRA and a Roth IRA. While Revenue Ruling 92-73 precedes the creation of Roth IRAs, and doesn’t specifically mention them, I wouldn’t have advised a client that a Roth IRA should be an S Corporation shareholder. But maybe there was some overwhelming potential advantage for this taxpayer I don’t know about.

Why do Form 1120-S scrutinize Tax Court cases?

Tax Court cases often precede tax regulation changes. They tell us which way the wind is blowing. Sometimes we can proceed with tax strategies before they become regulations, subject to the client’s potential tax savings and risk sensitivity.

We’re a CPA firm with a virtual office to serve long distant clients. And add convenience for our local clients as well. We function as an S Corporation, so you know we stay on top of developing issues. For a free initial phone consult, please call (910) 399-2705.

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