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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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 Tax Audit CPA discusses Notices | IRS Letter 566 (CG) and Notice CP2000 | Correspondence Audits

IRS Letter 566(CG) and IRS Notice CP2000 tax audit CPA discusses correspondence audits

Gary Bode, CPA: any IRS audit deserves careful attention. Here’s how a tax audit CPA approaches correspondence audit. (910) 399-2705.

IRS Letter 566(CG) or Notice CP2000 marks the start of an automated inquiry called a correspondence audit. Correspondence audits are cost effective. Computer generated, these Notices generally focus on a few specific issues e.g. they might ask for documentation of your charitable contributions as listed on Schedule A of Form 1040. Of course business tax returns receive attention too.

  • Letter 566(CG) states your return is being audited.
  • Notice CP 2000 proposes changes to your return.

The IRS assumes they’re Correct

With any IRS or State tax audit they assume they’re correct and you must prove otherwise.

“Any IRS audit deserves prudence. But many of these automated Letter 566(CG) and Notice CP2000s, can be self handled. Be sure not to inadvertently increase the scope of the audit; stick to the stated issues.”
– Gary Bode, IRS tax audit CPA

Here’s how a Tax Audit CPA approaches IRS Letter 566 (CG) and Notice CP2000

Remember your situation is unique, and you probably don’t have much tax or IRS experience So, you can’t reasonably rely on this post alone for IRS audit advice. But here’s my basic process.

  • CPAs read Letter 566 (CG) or notice CP2000 carefully. The format and terminology confuses folks who don’t read Financialese.
  • Tax audit CPAs correlate Letter 566 (CG) or notice CP2000 to the underlying tax return. These first steps find the IRS issues, and the position they’re taking.
  • CPAs check the documentation used to prepare the audited tax return.
  • CPAs listen to your side of the story. Now we’ve established your perspective.
  • CPAs automatically look at the potential State implications even if no contact from the State has yet occurred.
  • Once both the IRS and client perspectives are known, the CPA determines the difference between them.
  • CPAs usually request more time from the IRS. We usually get nine weeks, even if the taxpayer strung the IRS along.
  • At this point I generally review potential options with the client including the pros and cons of each.
  • When appropriate, CPAs request an Agent be assigned to handle the case.
  • If the IRS is correct on Letter 566(CG) or Notice CP2000, CPAs generally ask the IRS waive penalties.
  • If Letter 566 (CG) or notice CP200 is correct, CPAs generally advise satisfying the IRS ASAP. If you can’t pay the IRS demand, CPAs may look at an Offer in Compromise, via Form 656, to learn if the IRS will accept less than what you owe. This is the pennies on the dollar technique.
  • A tax audit CPA also looks at an Installment Agreement to pay off the IRS in monthly payments.
  • If the client is correct, CPAs prepare an air tight case to prove it to the IRS.
  • Sometimes a tax audit CPA amends the return.

Is Letter 566(CG) or Notice CP2000 Correct?

Tax audit CPAs will refer you to a TIGTA (Treasury Inspector General for Tax Administration) report that says correspondence tax audit are “inacurate and overblown.” So, don’t be intimidated into assuming the IRS is always correct. Some internet chatter says that employment tax and investment issues are especially problematic.

Are IRS Notices the result of bad Tax Preparation?

Sometimes. We get new clients from IRS correspondence audits because these folks self prepared the tax return and didn’t get things the way the IRS likes to see it. However;

“IRS correspondence audits can occur even when the return is 100% correct.”
– Gary Bode, IRS tax audit CPA

Problem Area of IRS Audits

According to TIGTA, correspondence tax audits generate complaints about IRS handling of documentation. New clients do report high levels of frustration dealing with the IRS.

  • Overlapping correspondence is one issue.
  • Long waits at the local office is another.
  • Prolonged hold times for call are common.
  • Sometimes help from the IRS depends on the training of the Agent you deal with.
  • TIGTA says the IRS mishandles a small percentage of documents.

“If you fax or mail documentation to the IRS, call them to verify they received it.”
– Gary Bode, IRS tax audit CPA

I’m tax audit CPA with a virtual office to serve you or your company wherever you’re located. Some local folks find the remote office more convenient. The CPA license is essentially national. We offer a free phone consult at (910) 399-2705. Why? Well it’s mixture of helping folks with simple issues and obtaining new clients. But we don’t pressure you on our services.

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