PARTNERSHIP & CORPORATE TAX PREPARATION
Our primary focus is on tax preparation of forms 1065 and 1120. Our first step is obtaining the financial statements or a login to the accounting software. Before we start the preparation in our tax software, we first thoroughly review the financial statements and make inquiries. There are almost always adjusting journal entries that need to be made to bring the books up to speed. We discuss these with you and then begin the preparation process in our tax software. Each return goes through a two-step preparation and review process. The detailed preparation process involves converting the financials into a tax return. The review process gives us a chance to test for reasonableness, compare to industry averages and evaluate the current year return vs. prior year returns. When the return is ready to be filed, we send you a copy to review and an electronic 8879 form to authorize us to e-file the return on your behalf.
TRUST & ESTATE TAX PREPARATION
Our form 1041 tax preparation process starts with you uploading your current year tax documents to our secure client portal. The normal documents for trust & estate preparation include current year distributions to beneficiaries, 1099s received from brokerages, K1s from investments, real estate tax receipts, etc. Once we have checked all the boxes and we are ready for processing, we send the trustee/executor a draft copy for review and an electronic 8879 form to authorize us to e-file on the trust or estate’s behalf.
PERSONAL TAX PREPARATION
Our form 1040 tax preparation process starts with you uploading your current year tax documents to our secure client portal. We act as your tax file cabinet as we keep all documents (W2s, 1099s, K1s, 1098s, etc.) in our security-protected software for the time required by law. When you go to apply for a mortgage in three years, we’re one email away from sending your loan officer everything they need. Our two-step tax preparation process allows us to be detailed on the preparation side and analytical on the review side. There is usually a healthy dialogue back-and-forth while preparing your return each year. Once we have a finalized tax return, we send you a draft copy for review and an electronic 8879 form to authorize us to e-file the return on your behalf.
TAX PROJECTIONS & PLANNING
We are at our best when we can be proactive with our clients. Our ideal schedule is to have one tax planning session in June-July and a second in November-December. The June-July review allows us to dig into the results of the first half of the year and to project out what taxes will look like on the annual basis. It’s at this point in time where we make recommendations on adjusting payroll to owners and possibly altering the estimated tax payment schedule. We also discuss what the rest of the year has in store including future equipment purchases, personnel changes and possibly penetrating new markets or lines of service. We will come up with a couple tax scenarios based on second half performance so you have a target to shoot for. We want to make sure we are working towards your business goals while minimizing taxes wherever possible. The November-December review allows us to tell you with more certainty what your tax situation for the year is looking like. We make recommendations on speeding up or slowing down income depending on tax brackets between the two years. We take a deeper look at retirement contributions, equipment purchases and can tell you the effective tax savings on these types of deductions. Everyone’s tax situation is unique as one taxpayer may not benefit from paying their property taxes, while another may see a 50% tax savings on their real estate tax payment. Knowing exactly where you stand tax-wise allows you to make cash-flow decisions with certainty. It also allows you to start looking ahead to the next year without worrying about the prior year taxes still outstanding.
Dealing with the IRS can be frustrating and frightening all at the same time. We have extensive experience dealing with the IRS at every level. We have handled offers in compromise, installment agreements, field audits, office audits, as well as the appeals process. No matter your IRS situation, we can help.
Most IRS notices have the option to send in a check with a voucher attached. First off, never send in money before having us review the notice. The IRS makes a habit of assuming the worst-case scenario. For example, let’s say you forgot to report a stock sale of $5,000. Chances are, you paid somewhere close to $4,500 for that stock. The IRS doesn’t care to give you the benefit of the doubt. They will propose a tax based on the entire $5,000 being taxable, when in reality your gain should only be $500. Before you do anything, pick up the phone and call us. The majority of IRS notices are matching notices or misapplied payments. We can break down these notices right away and get an action plan together. Most can be handled with a written response sent via certified mail. If we need more information, you’ll sign a form 2848 and we will call the IRS on your behalf.
Depending on your business structure (LLC, INC, LP, GP, PA, PC, LLP) you may have a choice on how you wish to be taxed. The majority of our clients are structured as LLCs with the state. A single-member LLC can be taxed as a disregarded entity (directly on your personal return), an s-corporation or a c-corporation. A multiple-member LLC can be taxed as a partnership, s-corporation or c-corporation. There are solid reasons for each of these choices. Depending on long and short-term goals, we sit down and advise you on the best tax structure for your business. The main areas to focus on are self-employment tax, qualified business income deduction, succession planning and qualified small business stock exclusions.
NEW BUSINESS FORMATION
We are an invaluable resource for new business owners. We first discuss your business plan and the feasibility of opening your doors. The next step is determining what business type best suits your needs and how that business will be taxed by the IRS. Additionally, we discuss the best accounting method for your business (accrual, cash, completed contract). We can assist in the formation of your entity with the Secretary of State and we work hand-in-hand with your business attorney to draft operating agreements and partnership agreements. We can help in obtaining an EIN from the IRS so you can set up a business bank account. We assist with registering with federal and state agencies for payroll tax, franchise tax and sales tax accounts. Lastly, we work with you to choose and set up accounting software and a payroll provider that is both cost effective and efficient.
BOOKKEEPING & PAYROLL CONSULTING
We are firm believers in letting the professional do what they do best. In that vein, we normally recommend leaving the tax preparation and planning to the us and let the bookkeeping and payroll specialists handle those functions. If you have bookkeeping needs that are time consuming including data entry, invoicing, bill pay, A/R and A/P tracing and inventory tracking, we recommend using a third-party or internal bookkeeper. They often have bill rates that are much more reasonable for the work they are performing. We work closely with your team and help guide them with any issues they run into. We are more than happy to answer questions as they arise. In fact, we encourage transparency and an open dialogue with your bookkeeping team. The cleaner the books, the easier the tax return. The easier the tax return, the lower the bill for you. We want to be a resource for your accounting team in any way possible. If you need a referral for a bookkeeper or payroll provider, please reach out. We have someone who is in you area and specializes in taking care of clients just like you.
We do provide bookkeeping services for those clients who don’t mind paying a bit of a premium. It does have the benefit of keeping everything under one roof and will cut down on your tax preparation bill. We will provide a QuickBooks online subscription and reconcile all bank and credit card accounts. You can trust you have the most accurate books on the planet and you’ll have real-time financials you can rely on. The fees for monthly bookkeeping range from $300-$1,000. Please call us to discuss your bookkeeping needs. We will give you our honest opinion depending on your situation.
We also do provide payroll services for those clients who prefer it. We file all quarterly and annual payroll reports and coordinate payroll tax deposits. This usually makes sense if all employees are owners. Breaking down your owners pay between W2 wages and distributions is a delicate balancing act. You need to be yourself a reasonable salary, but you also want to limit FICA taxes and maximize your QBI deduction. We provide the expertise and guidance to accomplish all these goals.
What we Do
Individual & Corporate Accounting Services
- Partnership & Corporate Tax Preparation
- Trust & Estate Tax Preparation
- Personal Tax Preparation
- Tax Projections and Planning
- IRS Representation
- Entity Selection
- New Business Formation
- Bookkeeping & Payroll Consulting
David R French, CPA is a hands-on tax, accounting, and business consulting firm.
We are committed to providing extraordinary service while fostering lasting relationships. Our goal is to provide individuals and small businesses the invaluable insight they need to navigate the potentially complex tax code. We strive to make taxes painless while taking as much off your plate as we possibly can. We hold ourselves to the highest standards and will always go the extra mile for our clients.
"Dave continuously exceeds our expectations on level of knowledge, professionalism, and responsiveness. As a startup we have limited resources to tackle, what seems like unlimited tasks, Dave has been instrumental being a team member to help take us to the next level. Without question, I’d recommend Dave to anyone within my network; overall he’s a great guy and pleasure to work with."
"I’ve been working with David to serve our mutual clients for several years now. As a corporate, securities, and tax attorney, it’s critical that my clients have skilled, diligent, and personable tax advisors and CPAs, not only skilled and knowledgeable with tax matters, but also business matters. David has consistently provided practical, cutting edge advice regarding both general and complex tax and business matters. He is a pleasure to work with and I highly recommend him and his team for your professional tax services."
"From the moment I met David it was clear he is an expert in his field. For every question he has a sure answer, and he was able to quickly outline short and long term plans for my business. He provides immediate confidence that a complicated area of my business is in good hands, and yours will be too if you go with David."
10815 Ranch Rd. 2222
Bldg. 3B Ste.100
Austin, TX 78730