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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We short sold our home in 2014 and were concerned with the repercussions from the cancelled debt. We did a lot of research on the internet and were able to find Gary.  He provided a free consultation and let us know that we should be do.  Due to his expertise, we went from thinking that we would owe a significant amount of money to actually receiving a nice refund.

We would recommend Gary to anyone who finds themselves in a similar situation.  He’s very knowledgeable on the process and explains everything with you once he’s completed your tax forms.

Adam and Robin McNany

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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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