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 Notice CPA comments on Notice CP 2000

IRS notice CPA Wilmington NC discusses IRS CP 2000

Gary Bode, CPA: IRS Notice CP 2000 isn't always bad news. But if your's is, consider calling for a free phone consult at (910) 399-2705.

Ouch, there’s a letter from the IRS in your mailbox. The IRS computer generates Notice CP 2000, usually years after the tax period they’re concerned about. Most CP 2000s propose you pay more tax, penalties and interest, and conveniently calculate it  for you.  Statistics show about 33% of CP 2000s don’t demand additional tax, but when they do, the average amount is $1,379.00. While CP 2000 may look like a bill, technically it’s asking for clarification of some tax issues on that tax return. It proposes changes to that return based on information they’ve received.

“Despite the non-threatening tone of CP 2000, you must respond in some way. The worst tactic is doing nothing.”
– Gary Bode, IRS Notice CPA

Possible Responses to IRS Notice CP 2000

  • Agree with it. Remember 33% of CP 2000s don’t demand additional tax. Sometimes there’s even a refund due!
  • Pay what they’re asking. For example, maybe you forgot to include a W-2 on the return, they know about it and have kindly re-calculated the amount of tax due.
  • You disagree with the proposed changes. The IRS isn’t always right. While you could call them, a letter clearly stating your objections and corrections, including relevant documentation, works best.
  • Most CP 2000 clients I see need to amend their prior return. For example, the IRS knows about a Form 1099-MISC you received for work as a subcontractor. The IRS demands tax on all of it. But you had legitimate expenses to offset the income. Amending the return is the only way to present these expenses.

Asking for more Time

Generally the IRS grants more time, especially if you ask before the due date listed in the CP 2000. If you engage a CPA, generally that’s the first thing we do. In my experience, the IRS is patient if they know a professional is working the case.

Penalties and Interest

If you amend your return, or prove you owe less tax then the CP2000 demands, the penalties and interest decrease. If there’s IRS Agent involved, they have more leeway with penalty abatement. I think most IRS Notice CPAs routinely ask for penalty abatement, and, I’ve found there is usually a reasonable cause to do so. Interest is tougher. You have to prove the IRS mishandled some part of your tax problem.

Can you handle CP 2000 Yourself?

Probably. I think most CP 2000 notices are cut and dried. Make sure the IRS is correct. Call them if you need help understanding it. Take timely action.

When do you need a CPA for a CP 2000 response?

When you disagree with CP 2000, engaging a CPA is prudent. You have to prove your case to the IRS. Sometimes you have to amend the tax return(s) in question.

State Implications

Remember, if your State has an Income Tax, they’ll eventually follow the IRS action. Better to be proactive with this, in my opinion.

I’m an IRS Notice CPA with a virtual office. While my office is in Wilmington, NC, I can help you no matter where you live (except CA or HI). If you don’t have a local CP 2000 CPA, or like what you read, consider calling (910) 399-2705 for a free phone consult.

 

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