What is Tax Planning?
Tax planning is the process of managing your affairs so that you can legally postpone or avoid paying taxes. Without a proper tax plan in place, you could end up making enormous and avoidable mistakes over your lifetime. For this reason, many individuals and businesses choose to prepare their own tax returns. Unfortunately, they’re often left with more questions than answers as a result. Without proper advice, you run the risk of missing out on many tax deductions and credits that you’re entitled to or misapplying an area of the tax law that could have serious tax implications and consequences in the future. The result? Huge tax liabilities, penalties, and interest.
This is why it’s important to consult a tax professional as you manage your financial future.
The most serious problem facing taxpayers today is the ever-changing and complex nature of the tax code. It has almost four million words describing all of its rules and regulations and since 2001 there have been nearly 5,000 revisions made to it. For the average taxpayer, understanding all the rules for preparing tax returns would be incredibly challenging. The truth is most people need help from professionals. That’s why choosing the right tax planner is essential; make sure the one you choose is committed to getting you the biggest tax refund or lowest tax liability possible.
What Should I Look for in a Tax Planner?
- Someone who will work closely with you. The ideal tax planner is involved and proactive—meeting with you throughout the year to come up with effective tax planning strategies to maximize your tax refund or minimize your tax liability in the following year and subsequent tax years.
- A professional with extensive experience who is committed to ensuring that you get all the tax deductions and credits that you are entitled to. Additionally, this person will use their expertise to help reduce the chances that you are audited by any taxing agencies in the future.
- Someone up to date and able to keep you apprised of all the current tax law changes and how these changes will impact your personal and business tax returns.
For more information on our Tax Services and Offerings, visit our website today.