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 used Gary’s services to file my 2012 income tax return. This was my first year having an accountant do my return, as I have always done it myself using TurboTax. However, this year I had cancelled debt from my old primary residence which I was forced to convert to a rental property after relocating out of state.

While it didn’t cost me anything to do the short sale, the income tax consequence from the cancelled debt, roughly $50,000 in my case, was enough to move me from the 15% tax bracket to the 25% tax bracket.  Needless to say, I was concerned about that.

Finances were already tight and my husband and I are expecting our first child this fall. So the possibility of owing income tax was stressing me out. However, Gary was great at relieving my fears.

He is extremely knowledgeable, answered all my questions and was very thorough. I knew I was in good hands. He kept in constant contact with me throughout the process, keeping me updated on the progress of my return and letting me know what paperwork he needed to complete my filing.

In my mind, best case scenario would have been to not owe any taxes. Second best would be to only owe a little. Well, you can imagine my surprise and delight when Gary told me I was actually due a refund of a little over $2,700.00!

To top it all off, I found Gary’s fee for service to be fair, competitive and affordable; especially given the complexity of this type of return. I am so glad I did not try and go it alone this year. I am extremely pleased with Gary’s service and would recommend him highly to anyone, in fact I already have. If you have cancelled debt from a short sale or foreclosure, don’t freak out. Take a deep breath and call or email Gary. I am grateful I did.

Angie Falke of Holiday, FL

Free Consult

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.

Pay Your CPA

Enter $ Below
Other Amount:
Your Email Address:

Form 8938 CPA discusses Reporting Requirements | Expat Taxes | Foreign Assets

Form 8938 CPA discusses expat tax issues

Gary Bode, CPA: Form 8938 reports your foreign assets to the IRS. For a free phone consult, please call (910) 399-2705.

The IRS demands to know about your foreign assets. But Form 8938, Statement of Specified Foreign Financial Assets, isn’t strictly for expats. I expect to see it used extensively with our domestic clients too. If you’re required to file Form 8938, just attach it to your annual tax return.

The Foreign Account Tax Compliance Act, or FATCA, was originally promoted as the US coercing foreign banks to release account information on American customers to the IRS. Form 8938 is, in fact, a self disclosing FATCA form. Showing perhaps that FATCA pressure on foreign banks isn’t working.

Why is the IRS so interested in Foreign Assets?

  • Lots of taxable foreign income goes un-reported to the IRS.
  • Foreign income is more common in a global economy.
  • The success of the IRS’s multiple OVDIs (Offshore Voluntary Disclosure Initiatives) implies there are billions of potential taxes hiding in foreign business transactions.

What kinds of Foreign Assets are reported on Form 8938?

Almost everything. The most common is foreign stock. But the IRS has covered most of the bases here. Be careful of schemes that purport not to qualify. A true foreign bank account is still reported on FBAR.

The Biggest Problems Form 8938 CPAs expect to see?

  • Non compliance penalties are stiff. The IRS has gotten serious about expat tax issues; like the $10,000 non filing penalty for Form 5471 for example. So the following three points make Form 8938 CPAs nervous.
  • Folks, whose foreign assets incur no tax liability, may not realize they must file Form 8938. If you are required to file, you must file even if it incurs no additional tax.
  • New tax forms evolve. Form 8938 CPAs expect to see changes in the form itself and the underlying rules, especially in the first few years.
  • Folks being completely unaware of this new reporting requirement.

So, what are the filing requirements for Form 8938?

  • First, you don’t have to file it if you aren’t required to file a true tax return like 1040 or 1120-S.
  • Your foreign assets have to meet a monetary threshold, below which you aren’t required to file.
  • The threshold depends on your filing status e.g. Married, Single, and whether you lived outside the US.
  • The threshold is two-pronged and depends on the foreign asset value on the last day of the tax year and its highest value during the tax year.

We’re an expat CPA firm with a virtual office to accommodate long distance and international clients. Of course, we can handle all your domestic tax work too. We prepare:

  • Form 8938
  • Form 5471
  • Form 2555
  • Form 1116
  • FBAR
  • OVDI

Please read any of the hundreds of postings on this website to gauge our ability and attitude. For a free phone consult, please call (910) 399-2705.

 

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>