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

"Gary explained the crazy payroll tax process so even I understood it. He trained the staff and provides ongoing support. Much cheaper than a payroll service."

Steve Carter, DDS

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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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Back Tax CPA Firm discusses Back Taxes and unfiled returns

Back taxes discussed by a Wilmington NC CPA and tax accountant

Gary Bode, CPA: we offer a free initial consult on IRS and back tax issues. Just call 399-2705.

Back tax CPAs deal with back payroll taxes, back S Corporation taxes, back Partnership taxes, etc. But here I’ll offer some tips on personal back taxes. Sometimes folks, for a variety of reasons, just don’t file their taxes. Maybe the IRS doesn’t catch every non-filer, but their collective computer technology is impressive. Chances are, if you’re alive, and didn’t file, they’ll eventually catch up with you. We’re not judgmental about back tax cases. We just want to clear you with the IRS for the least dollar amount possible, in the least stressful way we can. If you don’t have a local back tax CPA consider calling me for a free consult

Back taxes can be worrisome. We hear clients describe dreading the mailman, and being afraid of an IRS return address.  We see them worry when a normal bank request for a tax Form W-9 triggers paranoia over their back taxes. No one likes a tax audit or IRS attention.

“Surprisingly, we see back tax cases where clients had tax refunds coming. Even with the IRS penalties and interest.”
– Gary Bode, back tax CPA accountant

Initial IRS Notice

Internal IRS tax audits identify non filers and then generate a Notice, which is mailed to the tax payer.  Sometimes they politely ask for the tax return. But usually, the Notice kindly calculates the taxes, penalties and interest due based only on the income reported to the IRS.  The IRS calls that a substitute tax return. It uses your income, like from a Form 1099-MISC, for example without using associated deductions, making the amount demanded too high and disconcerting. I think this is just a ploy to get the taxpayer to actually file their back taxes.  The IRS doesn’t really expect to get the amount demanded on the Notice. They know you have legitimate deductions.

Filing an accurate back tax return almost always decreases the IRS demand on the substitute return for taxes due, penalties and interest.

Steps to Back Tax Resolution

Your back tax CPA generally prepares IRS tax returns for all unfiled years. This takes information. The first place to look is actually the IRS, which can provide transcripts of all information they have on file for you. They won’t do that at their local offices. The IRS website has a Get Transcript tool which is great when it works. However Clients complain the Get Transcript tool says the taxpayer isn’t who he claims to be. That happened with my own Father. If the Get Transcript tool doesn’t work, your back tax CPA can file a form to obtain what info the IRS has on you. This includes income and some expenses, too, like say, student loan interest you paid, Health Savings Account contributions, etc.  But there are always legitimate tax deductions that aren’t reported to the IRS in back tax cases. Like real estate taxes paid on your home, for example. Or expenses you incurred to receive the non-employee income reported to the IRS on Form 1099-MISC.  Since back tax cases have already drawn IRS attention, we assume the returns, when filed, will be examined carefully. So accuracy and backup documentation is important. Most red flags are in fact legitimate and just require some explanation and documentation.

So, once your back tax returns have been prepared, we know what your situation would have been had you filed on time. Sometimes we can ask for penalty abatement especially if you had refunds coming.  And yes, that does happen.

Offer in Compromise

If you do owe back taxes, we take a look at an Offer in Compromise to ascertain whether the IRS might consider taking “pennies on the dollar.”  The IRS has an Offer in Compromise pre qualifying tool which works well. It even tells you how much they’ll take as payment in full. If you qualify you probably need a back tax CPA to prepare the actual Offer in Compromise. Note that for years the TV “offer mills” charged $1500 +/- to do what the IRS now does free.

IRS Installment Agreements

Not every back return case generates a refunds. Part of that is the IRS only allows a refund for the last three years. Every back tax CPA has seen huge amounts of tax refunds disappear into the three year rule.

Once the back tax amounts due are whittled down, we help you figure out how to pay it.  Sometimes the refunds from one year help pay the taxes due in another. Often, the IRS will accept an Installment Agreement. But other factors have to be considered, like will you be able to meet future tax obligations during the Installment Agreement? You have to stay current with the IRS or they can cancel your installment agreement and potentially put out a tax lien and eventually levy (like emptying your bank account or garnishing your wages).

Do you need a back tax CPA?

  • Some Folks think a CPA signature helps avoid an IRS audit.
    • I don’t know if that’s true. But I’ve certainly worked with some Revenue Agents who were relieved to now be working with a back tax CPA instead of the back tax client.
  • Accurate documentation is harder to find the farther back you go. So your back tax CPA can help ascertain how to do that.
  • Sometimes the original reason the Client has unfiled tax returns is that they didn’t understand the underlying tax reporting rules.
    • In our practice that’s usually with cancelled debt and Ponzi Schemes.
  • Tax software doesn’t always handle cancelled debt or Ponzi Schemes.
  • Don’t get caught up emotionally over back tax returns. I run interference for you.
  • Don’t poke the bear. Most IRS employees are professional. But you should be aware they have the potential to make your back tax problem worse.
  • Don’t incriminate yourself.
    • Your back tax CPA will try to keep the returns clean.
    • Sometimes the Client opens up multiple issues in one tax year which leads to similar problems in other tax years.

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