Tax Planning

We use a tax planning software package (BNA) which imports from our Lacerte compliance software to allow us to efficiently calculate the impact of different incomes and deductions in the current year or different scenarios in future years. This tool allows us to spot and correct such traps as under withholding and Alternate Minimum Tax issues in current year scenarios or future year projections.

We use Commerce Clearing House's (CCH) Internet tax research product to receive daily updates on IRS releases via E-mail. CCH has one of the most extensive tax research libraries available and because it's on-line, we don't have to worry about our library being out of date due.

Our planning resources also include a subscription to all Tax Court cases, updated quarterly, that describe real life tax issues by real taxpayers who get caught in controversy. The Court cases often give us the authority to take pro-taxpayer positions, that otherwise might seem like a stretch given a literal reading of the IRS Code and Regulations.

The difference between tax avoidance and related strategies and tax evasion is the difference between 5 years in Leavenworth and a good night's sleep. We only consider avoidance strategies that make good economic sense (remember the tax shelters of the 80's?) using the basic rule that its not the tax you pay that matters but what you get to keep free and clear after taxes that matters.

We stay clear of schemes promoting foreign trusts and similar techniques designed to put complex paper trails and physical distance between the taxpayer's wealth and the IRS. There are plenty of legitimate tax deferral techniques available such as like-kind exchanges, family income splitting plans, deferred compensation plans and IRA beneficiary selections which are perfectly legal and don't put you at risk from unscrupulous promoters or the wrath of the IRS.