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Alpha-Mail 
The Tax Professional's Guide to Georgia Tax Credits, Courtesy of Alpharesults
Vol. II No. 2 February 2008
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Hello!
Welcome to Alpha-Mail, the monthly newsletter about Georgia tax credits for Georgia tax
professionals.
In this month's issue, learn if pursuing Georgia's tax credits is worth the effort! And, learn how one CPA partner worked together with Alpharesults to obtain multiple tax credits for a client. Also, we have a Quick Update about tracking 2008 tax credit legislation. So thank you for reading Alpha-Mail -- please click reply to tell us what you think.
All the best, 
Dale Stapler Jim Tinsley
Alpharesults, LLC
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Are Tax Credits Worth the Effort?
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I don't like those new energy saving light bulbs -- I have to buy a couple of cases just to get a few $ in federal energy tax credits. I could save my own energy by not completing all the paperwork, mailing the forms and tracking the status. Forget it!
It's one thing to worry about my time and effort -- it's another thing to look out for the best interest of clients. CPAs sometimes tell me that the effort to pursue tax credits for their client is not worth the tax credit $ results. I ask them why, and their replies are all over the map: "it's too complicated," "it's too hard to understand," "there is too much paperwork," and on and on.
One question CPAs frequently ask me is: "What are other companies getting in tax credits?" Well, I have found a lot of companies that have discovered it is worth digging a bit more, despite the obscure details, petty rules, and other hoop-jumping required by the state.
Here are some real examples:
- Distributor: Over $70,000 of tax credits for a new distribution systems for an appliance parts distributor.
- Engineering Firm: Over $37,000 of tax credits for new project management and business system for a civil engineering firm.
- Physician Practice: Over $49,000 of tax credits for a new electronic medical records system for a cardiology practice.
- Contractor: Over $47,000 of tax credits for business systems for a 47-employee home builder.
- Community Bank: Over $55,000 of tax credits for a new core processing system for a bank with $125 million in assets and 48 employees.
Are tax credits worth the effort? My reply is always, "I don't know, but similar companies have benefited from the tax credits."
So "dig in" a little and ask a few more questions. Your clients will thank you for trying, and they might also tell you that yes, tax credits ARE worth the effort!
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Working Together Creates Win/Win
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What if your CPA firm already does some tax credits, but not others?
We encounter this situation all the time and have found a good way to achieve the best for the firm and their clients.
We had been talking to a partner in one CPA firm for a while about gettting payroll Withholding Tax Credits for one of their clients. Her CPA firm had already been helping other clients obtain Georgia Job Tax Credits, but had not pursued the payroll Withholding Credits for this client.
Then she decided to introduce Alpharesults to their Controller. We reviewed the potential for all state credits and followed up with the CPA partner on the tax liabilities, available credits, and best courses of action.
We determined that their rapid growth, employment increases, and location in a Tier 1 county was an excellent fit for the Job Tax Credit and the payroll Withholding option. Together, the CPA partner and Alpharesults developed an action plan that:
- utilized 100% of their tax liability,
- provided carryforward credits for future years, and
- reduced the company's withholding taxes by over $40,000
The CPA firm handled all of the Job Tax Credit work, and Alpharesults handled the Withholding Tax Credit work. The CPA partner turned out to be a hero, and the client saved a lot on state income taxes and payroll withholding taxes. That's what I call a Win/Win!
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Quick Updates
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Wondering how to keep up with the 2008 tax credit legislation? The Georgia Chamber of Commerce suggests the following sites:
Fitzlew e-newsletter - click here
Georgia House Communications site - click here
Dick Pettys' InsiderAdvantage - click here
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Upcoming Alpharesults Events
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We frequently speak about tax credits for Georgia businesses to individual CPA firms as well as Georgia Society of CPAs chapter meetings. The following are upcoming presentations:
February 27, 2008 - GSCPA DeKalb Chapter. Click here to register. March 18, 2008 - GSCPA Atlanta Chapter lunch. Click here to register. March 18, 2008 - GSCPA North Perimeter Chapter dinner. Click here to register.
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About Us
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Alpharesults has assembled a team with the specialized knowledge and approach required to obtain Georgia income tax credits. We are not a public accounting firm. Rather, our services complement those of public accounting firms and do not create conflicted loyalties, because our professionals do not perform attestation work or other external audit functions.
We focus on small to medium-sized businesses and work exclusively in Georgia with a wide variety of in-state and out-of-state accounting firms. For more information on our services, follow this link.
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