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Other Compliance Products
RMC provides outsourcing and preparation of FAS 109 calculations for corporations subject to corporate income taxes. RMC's engagement team includes highly qualified audit and tax professionals that work together to provide complete and accurate FAS 109 calculations. For a controlled group of companies or a rapidly growing small to mid-market company, RMC can outsource this function for the company to provide cost savings and better professional quality than can be found with part-time or contract accountants.
This engagement provides the client with a review of the audit process and final IRS adjustment and notice of deficiency. The IRS's adjustment will be reviewed and a tax protest can be researched and prepared for the client. The client will have the support of the tax professionals in defending the tax protest through the audit process and any appeals court proceedings. Upon audit, many taxpayers accept the IRS's adjustments to their tax returns without the proper research and representation.
It is often advisable for a taxpayer to engage a professional to represent them or their business throughout the entire audit process. This ensures that the taxpayer is represented by a professional with the knowledge and experience to protect them and their business.
Companies that have grown out of their local tax accountant, have used the same accountant for many years, or who have experienced turnover in their CFO or controller functions may find significant missed tax savings, unintended errors, or inconsistent positions taken on their prior year tax returns. In addition, companies often find it difficult to keep up with rapidly expanding state tax compliance requirements in the areas of payroll tax, business licenses, income tax, franchise tax, and many other state and federal compliance issues. It is important for a company to periodically review these requirements and the positions they have taken on their tax returns for potential tax savings or risk assessment.
Not only does a historical compliance review ensure sound compliance and company policies, but it often leads to amending returns to capitalize on credits or other missed tax savings opportunities. Often taxpayers are not aware of these opportunities and their tax professionals are not afforded the time to sufficiently research areas of potential tax benefits. Incorrect methods of accounting for tax purposes can be changed and audit protection can be provided on incorrectly prepared past returns. The bottom line is companies should not wait another year to ensure that they are not at risk for future penalties or have not missed valuable tax savings opportunities.
Our expertise is illustrated in our history of providing real estate professionals with like-kind exchange structures that save in large income tax liabilities. This experience has provided us with the knowledge to create the only software package that provides accountants, real estate professionals, real estate brokers, lawyers, and exchange accommodators with a software tool that analyzes the tax effects of like-kind exchanges. This software package converts closing documents into calculations of gain recognized, gain realized, deferred gain, basis of new property, depreciation recapture, capitalized loan costs, transactional costs, acquisition costs, and much more. The software provides a complete calculation of Federal Form 8824.
This software is an essential tool to help professionals wade through the confusing rules under IRC §1031 and provide their clients with accurate compliance and real estate consulting services. In addition to the complex calculations, the software provides valuable education to the professional. It outlines the basic code, regulations, rulings, procedures, and judicial history in the key areas that present potential risk and problems for the client.
For professionals looking to expand their consulting practice in the profitable like-kind exchange and real estate area, the software provides case studies with suggested structures for complex like-kind exchanges and valuable sample documents for reverse exchanges, multi-property exchanges, build-to-suit exchanges, and personal property exchanges. Please contact our software division at 303-721-6131 to receive additional information and purchasing information.
RMC provides representation to taxpayers in state and local income tax, franchise tax, sales/use tax, payroll tax, property tax, and unemployment tax audits. Taxpayers should not allow any state or local official to audit any part of their company's taxes without proper representation. Contact RMC to discuss the specific type of audit that is being performed and how RMC can assist in the process.
Real estate joint ventures are becoming common in today's real estate market due to taxpayers' ability to elect out of the laws covering partnerships. Many joint ventures have been formed to facilitate like-kind exchanges or estate tax planning. RMC provides an efficient method for preparing tax basis income statements and balance sheets to report a joint venture activity to its owners. The tax laws applicable to owners in undivided interests or joint ventures in real estate can be complex due to the different tax methods of the owners. RMC provides the necessary experience in reviewing and preparing tax statements for joint ventures to ensure accurate tax reporting by its owners.
RMC's highly trained staff can provide a multitude of tax, accounting and consulting services. Many companies are outsourcing these services to provide their company with individuals with the proper skills to enhance their company. Companies have found that properly training in-house employees to competently provide tax services is time consuming and expensive. Many companies have found that outsourcing these tasks can lead to more accurate and professional results, as well as serving to free up valuable company time for more productive work.
Start-up companies and rapidly growing small companies first start to feel their growing pains in the tax compliance and financial reporting functions. In many cases, outsourcing is the only solution that is feasible. In choosing a professional company to outsource your tax and financial needs to, it is important to ensure that the company has the technological resources and professional knowledge to grow with your company.
In this engagement, experienced professionals will review IRS transcripts and notices following an IRS examination to determine that the appropriate amounts of penalties and interest have been charged to the client. The complexity of the penalties and interest rules following an examination lead to many errors in the computation of the penalties and interest. This engagement will recalculate the penalties and interest and represent the client in receiving any refund. Our engagement team will review the methods used by the Internal Revenue Service auditors to ensure that all of the laws have been followed.
A taxpayer that has just undergone an audit and has been assessed penalties and interest should waste no time in reviewing the accuracy of the IRS's notices and responding.
Taxpayers that are faced with a complex position taken on a tax return or an aggressive structure for a transaction may be able to receive an insurance policy from the IRS in the form of a private letter ruling. A private letter ruling or PLR asks the IRS for its position on a transaction prior to filing a tax return. PLR's can be valuable when multiple parties are involved, risky tax positions are proposed, or when the tax law is unclear. RMC assists taxpayers and their legal counsel in researching and preparing PLR's in our areas of expertise.
RMC will help a company in the calculation of earnings and profit for a Corporation or Accumulated Adjustment Account for an S Corporation to determine the tax consequences of distributions or acquisitions. Tracking E&P or AAA can be difficult and may be particularly important to a Corporation that has recently or previously elected S corporation status.
Many taxpayers are unaware that electing S corporation status after previously doing business as a C corporation has many tax effects. Distribution from an S corporation should be monitored carefully to ensure proper tax treatment. If E&P and AAA are not properly monitored, distributions can be reclassified as dividends or even capital gains. E&P and AAA are complex and cumbersome calculations that need to be prepared by a knowledgeable and experienced CPA.
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