Choosing a Tax Preparer and The Importance of Tax Planning

 When we review recent tax returns of new clients, we usually find they were paying more taxes than they needed to. Most had either prepared their tax returns themselves or did not receive sufficient advice from their previous tax preparer. The most prevalent problem is failure to adequately tax plan. Due to the new changes in tax laws, receiving tax planning is crucial for many business owners and others who can or have benefited from taking tax deductions.
What Is Tax Planning?
Tax planning involves the arranging of the taxpayer’s financial affairs to take advantage of all exemptions, deductions, and rebates allowed by law to reduce tax liability. Considerations include the timing of income, purchases and other expenditures; budgeting; and the individual’s filing status and allowable deductions.
What Your Tax Professional Should Do
Your tax professional should review your latest return and overall situation. This includes your employment history, assets, and equity. He or she should calculate the percentage of your earnings going to federal and state taxes, and determine how to reduce your tax liability given the new tax laws. Based on your review, an adept professional will guide you to the most effective strategy for you.
Receiving Tax Planning Assistance
A tax preparer who wants to save you money should ask to receive your documentation in advance. This should allow time during your tax preparation meeting to discuss tax strategies.
You will be best served if your preparer provides guidance not only during your annual meeting, but welcomes you to receive advice throughout the year. Nationwide tax services that are only available during tax season may not be suited to offer this valuable service. Other tax professionals may charge a hefty fee to discuss tax planning. We believe preparers who wish to maintain long-term relationships should offer their clients unlimited advice throughout the year as a complimentary service.
Should you have questions concerning tax planning, contact us. Professional Tax Services is a locally-owned provider serving over 3,500 local residents and businesses. For more information call 661-259-1967 or visit www.scvprotaxservices.com. Professional Tax Services offers unlimited free tax planning advice to their clients.