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We prepare most type of tax returns:

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S Corporation.

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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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My husband and I had to deal with canceled debt from a Deed in Lieu of Foreclosure on a second home with our 2012 taxes. We never had to deal with this type of tax experience and needless to say, we were fearful. Owing taxes on possible additional income was stressful. We searched for CPA’s as well as info about DILs and how Insolvency worked. When we came across Gary’s website, we were impressed. We found his website 8 months prior to tax season. We kept it as a “Favorite” as we knew we would need to contact him for assistance. When it was time to get a CPA, we called Gary. We felt relieved that we actually had someone that not only understood our concerns but was an expert in this area. He walked us through the process and all the time telling us not to worry. When our taxes were completed, you cannot imagine the relief we had when we actually were able to get a refund.

Gary is a dedicated professional and attentive to his clients. We love the virtual office as it is convenient during tax time and he’s fees were fair and affordable when you consider the depth of work accomplished on our taxes!

We’ve already started recommending Gary to others. We are so blessed and grateful for all that Gary did to assist with our taxes.

 

Patty and Tim, Fredericksburg, VA

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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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Wilmington NC CPA Accountant comments on Domestic Partnership IRS Private Revenue Ruling

Wilmington NC CPA accountant comments on Domestic Partnerships

Gary Bode CPA: we stay on top if IRS Private Letter Rulings to see emerging tax trends. If you'd like a free consult with a proactive Wilmington NC CPA / accountant. please call us at 399-2705.

Recently the IRS issued a Private Letter Ruling stating it will honor California’s community property laws, for one Domestic Partnership, for federal taxation.   The IRS also issued two Chief Counsel Advice memorandums that support this Ruling.

  • IRS Private Letter Rulings clarify a specific issue to a single taxpayer, in this case a registered Domestic Partnership in CA.  The ruling does not have the force of an IRS regulation.  But it can be used as a precedent in tax court cases.  So, it seems the IRS will eventually extend the ruling to all of CA and then States that support Domestic Partnerships.  NC does not support them BTW, so our gay and lesbian partnerships are not likely to be affected.  Chapel Hill allows Domestic Partnership registration though.
  • Domestic Partnerships are usually between same sex couples in States that don’t allow marriages for them.  Marriage generates hundreds of State legal benefits/obligations, and over a thousand on the federal level.  Domestic Partnerships usually bestow a lesser number of legal rights than marriage.

IRS Quirks: Some Domestic Partnerships could pay less than married couples filing jointly

Domestic Partners can’t file as married on their IRS form 1040s, although they must do so on CA state returns.  Up to this new Private Letter Ruling, each partner reported their own income on separate federal tax returns.  Now each domestic partner will still file their own return, go figure, but report one half of the couple’s income.  So twice the federal tax preparation as a married couple.  And with an interesting quirk!  An unintended result:  one scenario, where partner A makes a great living and the Partner B stays home, could mean this Domestic Partnership pays less federal tax than an identical married couple.

We’re a Wilmington NC CPA firm that prepares Private Letter Rulings.  And follow others carefully to see emerging IRS taxation trends.  Because we believe in proactively positioning our tax clients.  If you’d like a free initial consult with a CPA tax accountant, please call us at 399-2705.

Of course, since NC doesn’t recognize Domestic Partnerships, there would be no sense, at this time, to request a Private Letter Ruling on this issue.  I doubt any Wilmington NC CPA firm or accountant would do so.  Tax positioning with an eye towards the best economic result for two people is all that is possible.  But Private Letter Rulings can be requested for any taxation issue.  Sometimes, as with the one in this posting, they try to set precedent.  But generally, they can be a useful tool to pre clarify a currently vague tax regulation, sometimes exploiting loopholes before they even open.  We believe current tax preparation is the start of future tax positioning.

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