Tax Planning and Tax Compliance
In determining our strategic model of tax minimization we look to
||What are the long-term objectives of the client?
||What are the working capital formation needs of the business?
||How can we minimize taxes in the long run?
||What tools can we employ to meet the client's needs?
Bodtke & Stewart has been successfully assisting our clients in meeting their tax planning needs for over twenty years. You will find us in the field prior to our client's year end, studying strategy, doing interim tax accountings, and suggesting alternatives to managing the outcome of the annual tax return compliance process.
Should the client incorporate? If incorporated, should the client make or break an S election? Would placing shares with family members assist in Estate and Succession planning? Should the client form
a pension plan to shelter assets and obtain tax deductions?
How much working capital is needed to run the company effectively? Can we retain working capital by paying rates at the more favorable C corporate rates to meet this needs? Can we gradually recognize taxable income to meet the required working capital needs? What can we do to be certain the tax return maximizes the low corporate rates, and does not exceed the brackets?
Based on our tax accounting of the last eleven months, and our projections of our month-to-date operations,
where will the client's tax liability be at year-end? Can we defer income or accelerate deductions to achieve the optimal tax situation? Can we create net operating losses to recover previously paid taxes in prior years? Should we bonus the owner/shareholder compensation or leave it in the company to meet the working capital projections we identified?
If you are only seeing your accountant at "tax time", when the year is over and he is determining the tax owed, you are not effectively making use of tax planning. We urge you to speak with one of our tax professionals
prior to year end, to plan, control, and minimize your tax obligations.
No accountant can make taxes go away for a client completely and forever, but the failure to plan is the single largest waste of resources we find in new clients we serve. If you need assistance, simply contact us.
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