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 used Gary’s services to file my 2012 income tax return. This was my first year having an accountant do my return, as I have always done it myself using TurboTax. However, this year I had cancelled debt from my old primary residence which I was forced to convert to a rental property after relocating out of state.

While it didn’t cost me anything to do the short sale, the income tax consequence from the cancelled debt, roughly $50,000 in my case, was enough to move me from the 15% tax bracket to the 25% tax bracket.  Needless to say, I was concerned about that.

Finances were already tight and my husband and I are expecting our first child this fall. So the possibility of owing income tax was stressing me out. However, Gary was great at relieving my fears.

He is extremely knowledgeable, answered all my questions and was very thorough. I knew I was in good hands. He kept in constant contact with me throughout the process, keeping me updated on the progress of my return and letting me know what paperwork he needed to complete my filing.

In my mind, best case scenario would have been to not owe any taxes. Second best would be to only owe a little. Well, you can imagine my surprise and delight when Gary told me I was actually due a refund of a little over $2,700.00!

To top it all off, I found Gary’s fee for service to be fair, competitive and affordable; especially given the complexity of this type of return. I am so glad I did not try and go it alone this year. I am extremely pleased with Gary’s service and would recommend him highly to anyone, in fact I already have. If you have cancelled debt from a short sale or foreclosure, don’t freak out. Take a deep breath and call or email Gary. I am grateful I did.

Angie Falke of Holiday, FL

Free Consult

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 Notice CP 2000 CPA offers IRS tax audit tips | We Are Proposing Changes to Your Tax Return

IRS Notice CP 2000 CPA. IRS tax audit CPA.

IRS Notice CP 2000 marks the start of a low-level tax audit. Can you handle the response yourself? Sure. But call us for a free consult if or when you’re uncomfortable with the audit process. (910) 399-2705.

IRS Notice CP2000 CPAs expect the first 2012 Notices in November and December of 2013. IRS Notice CP 2000, We Are Proposing Changes to Your Tax Return, is generally routine. Remember IRS Notice CP 2000 is the start of an IRS tax audit. Pleas note you can’t reasonably rely on this post alone for tax audit guidance since your specific fact pattern is unique. I’m an IRS Notice CPA because it’s a source of new clients. Our virtual office means we can handle your IRS Notice CP 2000 regardless of where you live. If you get uncomfortable handling the CP 2000 response, consider calling us for a free consult at (910) 399-2705.

Here are some tips on handling an IRS Notice CP2000

Is IRS Notice CP 2000, We Are Proposing Changes to Your Tax Return, always bad news?

No sometimes it results in a refund. Most “proposed” changes are small enough that it’s easier to pay the IRS than argue with them, even if they’re right. But IRS Notice CP 2000 is the start of an IRS audit, albeit the lowest level of tax audit.

What’s the worst thing I can do in handling Notice CP 2000?

  • Not respond to it. This wastes valuable defense time. The IRS won’t forget you or the additional penalties and interest.
  • Open up other issues on the tax return beyond the main point of Notice CP 2000.
  • Open up other tax returns to an IRS tax audit. Business, personal, payroll etc.
  • Assume the IRS is correct. Note the IRS is usually correct, for the information they have on file.
  • Being rude to IRS personnel.

Can I handle a response to Notice CP 2000 myself?

Here are some things to consider if you need an IRS Notice CPA’s help:

  • Is the amount demanded on Notice CP 2000 large enough to warrant bringing in a CPA?
  • Are there known problems with other personal or business tax returns that warrant hiring a CPA?
  • Do you understand the tax issues involved?
  • Can you follow the IRS calculations? They’re not always right.
  • Is the stress of dealing with an IRS audit worth bringing in a professional?

Can I amend the tax return covered by IRS Notice CP 2000?

Sure. Just make sure it’s worthwhile. Most IRS Notice CP 2000(s) just require a response, not an amended tax return. But here are two real life examples of how amending the tax return really made a difference.

A new client called me on a Notice CP 2000. He hadn’t included a Form 1099-MISC as income on his Form 1040. The additional tax was about $600. Why? The IRS wanted to tax all of it because they had no information about the associated deductions. While perusing his tax returns I noticed he moved in the subsequent year and rented out his old house. He hadn’t claimed moving expenses or rental expenses to get his house ready. So I amended the tax return to include a Schedule C (to report the Form 1099-MISC expenses), Form 3903 (moving expenses) and Schedule E (rental property). Amending turned a $600 demand from the IRS into a refund.

A new client called about an IRS CP 2000 Notice for a prior tax year demanding $200,000+. Ouch. Why? She had a rental property foreclosure and hadn’t received a Form 1099-C, Cancellation of Debt, probably because she moved. Like most folks she had no knowledge of cancelled debt or rental property foreclosure tax consequences. So the IRS wanted to tax her on the total amount of cancelled debt as reported by the bank. Turns out she hadn’t realized the foreclosure was a “sale” of the rental property for IRS purposes either. So I amended the prior tax return to include IRS tax Form 982 (to exclude the cancelled debt from taxable income) and Form 4797 to report the ordinary loss she incurred on the rental property foreclosure. This negated the entire demanded on IRS Notice CP2000 and generated modest IRS and State refunds.

Common simple scenarios that don’t require a CPA

  • The dollar amount is so small that paying the IRS is just quicker and easier. Many new Clients get emotionally embroiled over a wrongful IRS demand.
  • There’s just a math error.
  • You inadvertently didn’t include some tax form, usually income related.

Don’t Forget to ask for penalty abatement

The IRS, and some States, will abate penalties on a “first offense.” But you have to ask for it.

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