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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IRS Form 4852 discussed by a Payroll CPA | Substitute for 2013 Form W-2

CPA Wilmington NC firm discusses IRS Form 4852

Gary Bode, CPA: If you’re having problems with Form 4852, consider giving us a call for a free initial phone consult at 399-2705.

Payroll CPAs prepare IRS Form 4852 to substitute for Forms W-2, W-2c, and 1099-R when your boss does not provide one, or issues an incorrect one.

Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. What a name!

When to Use IRS Form 4852 as a substitute for your W-2

Sometimes it is impossible to get a Form W-2 from your employer. The company may have gone out of business for example. Or your ex-boss refuses to cooperate over some personal issue. If your efforts to secure an original Form W-2 and/or Form 1099 fail, you can call the IRS after February 14th 2014. They’ll contact the employer or payer. But you may have to prepare Form 4852 as a substitute for the missing W-2, or 1099, as part of your overall Form 1040 2013 tax preparation.

There can also be mistakes on Form W-2, which your employer refuses to correct. Here you would also prepare Form 4852 as part of your Form 1040 tax preparation.

How to Prepare Form 4852

There must be a logical re-construction for the annual payroll figures presented on Form 4852. The most common re-construction scenario is using the last correct pay stub and extrapolating the rest of the year.

There are IRS penalties, of course, if you use Form 4852 to avoid paying taxes by manipulating your income. They’ve seen it all before.

What are Consequences of using Form 4852?

  • The IRS penalizes employers or payers who do not follow their guidelines.
    • So you are providing evidence against your employer.
  • If you file Form 4852 and then get more accurate information later (i.e. the W-2 arrives late), you may have to amend Form 1040 by filing Form 1040-X.
    • Any payroll CPA will say it’s always better to have an original W-2 or 1099.
  • Using Form 4852 as a substitute for your W-2 is probably is an IRS red flag.

IRS Audit

The IRS has you on a “pay as you go” plan for your income tax through deductions from your paychecks or estimated tax payments. You must prove they owe you a refund. Forms W-2 and 1099 are vital “revenue matching” documents for the IRS. It stands to reason they will take an interest in any return that circumvents providing an original copy. So, the entire Form 1040 should be accurate when presented using Form 4852.  And documented well enough to pass an IRS audit.

Explanations on Form 4852

  • You must present your calculations for the figures on Form 4851.
  • You must document your efforts to secure an original Form W-2 and/or Form 1099.
  • Attaching corroborating documents to Form 4852 proactively is prudent.

Form 4852 may not need a CPA consult. But  there are often other tax issues involved when Form 4852 is used as a substitute W-2

We hear of cases where Form 4852 is used to file Form 1040 before the original W-2 arrives, often for taxpayers that know they are due a refund and need it now. But, more likely, these cases involved a Rapid Anticipation Loan from a non-CPA tax preparer who later filed Form 1040 when the W-2 arrived.  RALs  were essentially halted by the IRS when they stopped providing tax preparer assurance that no tax liens existed on the taxpayer. This was secondary to President Obama recognizing that the fees and interest being charged were exorbitant. Part of the reason for Jackson Hewitt filing bankruptcy was the abrupt halt of large fees from RALs.

While we’re a CPA firm in Wilmington NC, we serve a broad geographical base through our virtual office. We practice in all States except HI. So, if you don’t already have a local CPA, or just want us to be your CPA, don’t let distance dissuade you.  We offer excellent customer service through E-Mail, phone calls, fax, scans, Skype, DropBox, Google Drive etc.   The CPA credential has now been essentially nationalized.  And NC is in the highest tier of State CPA reciprocity because of the rigorous entrance and continuing education requirements.

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