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We prepare most type of tax returns:


S Corporation.

C Corporation.




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Client Testimonials

I had a 1099-C for about $135,000. My husband didn't have any withholding on Social Security. His employer couldn't withhold due to incompetence. I felt utter dread wash over me. Memories of owing the IRS before were constantly on my mind. I called a local CPA. Besides being clueless, he wanted to charge me for every question I had about insolvency. I looked on line and found little hope of the countless stories of permanently disabled people like myself getting their student loans forgiven only to be asked to pay taxes on it as if it were income.
Somewhere, somehow, I find an article by Gary Bode. I bookmarked it for when it's time to do the actual taxes. With his excellent help in how to do all of this out of a virtual office I get my part of the work done. My questions got answered, for free. I give a retainer, do what I said I did and wait. I hear from Gary. I go into shock! How can this be? Not only do I not owe on the 135,000....Gary itemizes and after paying what was almost nothing in taxes we get $950.00 back! No more hubby doing the taxes online! I will use Gary Bode as long as he will agree to work with me!
It was so easy, no worries, but professional and top notch. I know I have thanked you Gary but I am so grateful. Thank you ever so much again!

Carla Bray

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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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S Corp tax CPA answers What is an S Corp? | how to setup an S Corporation business | changes to Form 2553 instructions | Form 8332 for LLCs

corporation s corp

Form 2553 instructions change in 2013. Call (910) 399-2705 for a free CPA consult on any S Corp issue.

New clients sometimes ask about the advantages of running an S Corporation business. Hi, I’m Gary Bode, a CPA who runs our tax and accounting practice as an S Corporation. So I stay current on S Corporations issues. We’ve got a virtual office to offer service wherever you’ve setup your S Corp. I’ll cover Form 1120-S, Form 8332, Form 2553 and Schedule K-1.

What is an S Corporation?

Per the IRS:

S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.

“S Corp shareholders don’t pay self-employment tax on S Corporations distributions. But this is a hot issue for the IRS.”
– Gary Bode, S Corp CPA

Steps in S Corp tax returns

  • The S Corp files Form 1120-S.
  • Then all that information from Form 1120-S distills down to Schedule K-1.
  • Shareholders use Schedule K-1 to prepare their IRS Form 1040.
  • Remember your State filing requirements too.

Can your LLC elect to be taxed as a subchapter S Corp?

Yes. For my clients that want to run an S Corporation business I suggest becoming a LLC and then electing to be taxed as an S Corp. Why? You can later elect to be taxed as a Partnership without closing the LLC. First file IRS Form 8332, Entity Classification Election. This turns your LLC into a C Corporation for tax purposes. And then file IRS Form 2553, Election by a Small Business Corporation.

How to set up an S Corporation

  • Setup a Corporation with your State’s Secretary of State.
  • Then file Form 2553, Election by a Small Business Corporation.

Form 2553 Instructions

Use Form 2553 to turn your Corporation into an S Corp. Getting the IRS to recognize the Form 2553 election is tedious. But not because the S Corporation business doesn’t qualify. There just seems to be a disconnect in the IRS systems. So, even when a timely Form 2553 is faxed to the IRS, CPAs often must re-file Form 2553. But then we’re seeking acceptance under one of the multiple Revenue Procedures available for late filing. However the new IRS Revenue Procedure 2013-30 simplifies late filing.

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