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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VCSP CPA discusses Cooperation between the IRS and Department of Labor | Section 530 Worker Classification and Form 8952

VCSP CPA Wilmington NC Form 8952

Gary Bode, CPA: before filing Form 8952, let’s make sure you have to. For a free phone consult call 399-2705.

Hi, I’m Gary Bode, a VCSP CPA with a virtual office to serve clients beyond our Wilmington, NC base.  We’re fielding inquiries about how and when clients with Worker Classification issues should use the new Voluntary Classification Settlement Program (VCSP). One question we’re asked concerns whether the IRS can actually catch worker classifications.

Worker Classification Error is easy to Spot on a Tax Return

Some clients are dubious about the IRS’ ability to catch worker mis-classification. But I think most VCSP CPAs would disagree. Why?

  • First, businesses don’t want to pass up the tax deduction for subcontractor fees. And once it’s on the tax return, internal indicators make some offenders easy to red flag. I think the IRS just doesn’t have the resources to audit all offenders.
  • Second, as any CPA knows, the IRS and the Department of Labor are now sharing information. Ouch.
  • The IRS uses revenue matching. To take the deduction for subcontractor fees, generally you must 1099 these folks. If your subs are shifty on their taxes, it can come back and bite your company.

Update

Here’s a post on VCSP and Form 982 discussing recent developments.

Section 530 Safe Haven: Maybe you’re OK with your current worker classification?

Before filing Form 8952, check all the pertinent issues. Part of your VCSP CPA’s job is determining if you’re actually in error with your present worker classification. Section 530 basically says that if your company has a reasonable basis for considering workers as subcontractors, instead of as employees, it may do so and avoid employment taxes. Each case is different. The basic two IRS guidelines for distinguishing subcontractors and employees have a lot of gray areas. A number of lesser IRS factors exist as well

“Sometimes just proactively documenting why you classify workers as subcontractors prevents the IRS from re-classifying them on an audit.”
– Gary Bode, VCSP CPA and payroll accountant

When to File Form 8952

  • The IRS answer is 60 days before you want to re-classify your subs and employees.
  • The penalty is based on calendar year subcontractor payments. When would the penalty be lowest?
  • If your company hasn’t had to pay employees until now, another consideration is the new payroll reporting requirements. Many VCSP CPAs also handle payroll. I think most of us would consider making this change at the beginning of a calendar quarter, to provide time to develop new internal payroll processes, before the first Form 941 is due.
  • The ethical answer as to when to File Form 8952? Now, if you are in noncompliance.
  • Remember, once the IRS audits you, the company can’t utilize VCSP.
  • Even though the IRS is not seeking to punish past offenders who do apply under VCSP, they will make an example out of few companies who don’t, and then publicize it well. So, your risk tolerance factors into the decision.
  • Payroll taxes are a major factor in cash flow management. So, sometimes your cash flow might dictate the timing for Filing Form 8952. Remember, you have to pay the penalty and then treat subcontractors as employees in the future.

For more info, please see our other VCSP and Form 8952 postings via the Form list on the right and/or the Category drop down box on the left.

Is Form 8952 something your company can handle in-house? Maybe. But if you’re uncomfortable in doing so, please give us a call for a free phone consult at (910) 399-2705.

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