Tax planning is a comprehensive look at your current financial position as an individual or a company, looking at existing tax policies, any anticipated changes and/ or new events and expected changes in tax laws while analyzing their potential impact on your tax position.
The complexity of the tax code which is over 60,000 pages long and includes changes in tax law that are made every year is in many cases outright ignored by both taxpayers and tax professionals alike due to it’s length and complexity however, it has a profound impact on the tax positions of both individuals and businesses.
Often, taxpayers as well as tax professionals are only concerned with dealing with negative tax situations after the fact. When taxpayers begin asking their tax preparer about ways to reduce their tax liability, tax professionals see that as a sign to look for ways to increase deductions, find credits, and sometimes use unsafe practices to increase their client’s tax return rather than reducing liability.
The scarcity of forward-looking tax planning that carefully studies the clients current situations and investigate potential changes results in higher tax liability that the client, inevitably, ends up paying for. At times, this can be much more than a little bit of savings that the taxpayer may have missed but is due to the inability to foresee tax problems before they actually happen.
Tax planning puts to use our knowledge and expertise of tax law to advise our client on what to do so they can best handle their finances and proactively avoid any tax problems.
Both management and staff of Smart Tax Team have many years of academic and field experience when it comes to tax planning and prepping. We take tax planning and liability reduction very seriously at Smart Tax Team. We not only prepare taxes and resolve tax issues but we educate others on tax matters through our sister company 3isschool.com .
The decision to engage Smart Tax Team for tax planning can prove to be one of the most lucrative decisions made by a company or an individual, considering the significant amount of savings that can be achieved simply by doing things the right way.
Typically , tax planning happens once a year and ideally before any major financial events that could negatively effect the taxpayers life. Similar to everything we do at Smart Tax Team, the process is very simple. We request information from you, then we have a quick interview to understand your existing tax situation, ask questions about your future goals and discuss any potential or anticipated changes in your life (as an individual or as business), then we get to work. When we are done, we will share with you our findings in a simple and concise way, with a set of activities and a plan of action that you can start on immediately to put our advice to work. As always, we are committed to a simple process but high-quality results. To learn more, book your free consultation with us.