Lenz Corp.

Q: How confidential and private is my information?

A: Check out our Privacy Policy - its one of the most extensive and protective on the net today. Basically, we follow the entire Code of Ethics from the American Institute of CPAs, as well as additional internet-related and IRS preparers' (Circular 230) consumer protections to safeguard your information as much as possible. We are very serious about our clients' privacy!

Q: I got behind filing and paying my taxes. Is there any way I can cut or at least work out terms with the IRS for what I owe?

A: Yes, there are several tax tools you can use to request waivers of penalties, reduce interest, and sometimes even get steep discounts on the tax bill itself. To qualify we will need to go over your situation in detail (type of tax owed, any Trust Funds, assets and cash flow for your business and for you, etc.) The IRS guidelines to figuring out how much of a discount they will give include these factors....

Q: Do I have to pay myself a wage as an S-corp owner, and if so, what is the minimum I can do?

A: Yes, the IRS will not allow you to take tax-saving distributions without also taking some wages. There is a ballpark ratio you can use to lower your chances of questioning in an audit. Also, there are four other common ways to take profit from an S-corp that will cut your tax bill. They are ....

Q: I am thinking of letting a friend buy into my business so I can get the cash I need to open another store. How do I figure out the value of my business?

A: You actually have several questions here. First, there are 13 commonly accepted "formulas" for valuing a business (and one shortcut that will give you a rough value for this purpose without costing a fortune for a formal valuation). Secondly, once we go over the valuation, you will need to structure how your friend not only buys in, but what the exit strategy will be to get him out (when, how much, etc.). Third, what control or right to information will your friend have as an investor (your state provides a minimum level of minority shareholder rights), and how do you make sure you don't lose control? Finally, is this really the best way to expand? There are several other options for raising expansion cash that you should be aware of before you commit to having an investor limit your freedom. Let's start with the valuation question's shortcut formula, which is ....

Q: Do you stand behind me if I get in trouble with the IRS?

A: In my many years of accounting experience, my clients have especially appreciated that I stand behind my work and do what is best for them. I really care about your situation too, and will give you realistic answers, not unsupportable ones, based on the fact that the tax law is complex and has potential for multiple outcomes. If you enlist my services to represent you during an IRS audit rest assured my objective is to pursue the best possible outcome on your behalf. Period.

Q: Is this one time advice, or ongoing support?

A: You decide. We prefer to develop an ongoing relationship with you so we can give you the maximum personalized help towards meeting your long-term goals, but there is no commitment on your part. We also have a FREE Tax Tips newsletter to help you keep on top of the latest ideas and developments quickly and easily.