Tax Analysis and Strategy

Tax planning is not avoidance of tax payments nor is it done with intent to defraud or evade tax liability. Tax planning is carried out within the framework of tax law.

The “pay yourself first” phrase also applies to tax planning. Ignoring the after-tax return on investments or the after-tax cash flow on wages, for example, means that you often pay the US Treasury first and yourself last. Just as regular, consistent savings contributions go a long way toward building a long-term nest egg, regular, consistent tax planning helps ensure that you keep more of that nest egg.

Proper tax planning involves deploying analysis and sound strategy to minimize tax liability through the use of all available allowances, deductions, exclusions, credits, and exemptions and reducing or deferring taxable income. Tax strategy includes careful attention to the timing of recognizing income and planning purchases and other expenditures with the tax consequences in mind.

An experienced tax professional, like Denise Robinett, not only understands tax strategy as a way to maximize income, but she believes that it is essential that tax planning not trump overall financial planning and strategy. “While tax planning is an important part of financial planning, it shouldn’t be allowed to become counter-productive by taking the spotlight from business and investment growth,” she said, in a business tax planning meeting. “However, many taxpayers make the mistake of over-looking tax planning as a way to deploy resources better. Whether the taxpayer is a business or a family, resources are limited and should be put to their best use.”

By freeing up funds previously used for taxes, taxpayers can then put that money to its best use. Tax savings can be used to fund retirement, pay college tuition, purchase equipment for expansion, or even take a dream vacation

Customized approach to planning

Although no one can predict the future or fully know what tax law Congress will enact from year to year, making an assessment with the best information available is vital to planning for success.

There is no “one-size-fits-all” approach to tax planning as each business or individuals’ financial and tax situation is different.

At ETS, we offer comprehensive tax planning services. We believe that income tax planning is an essential part of financial planning and that without it, taxpayers can have difficulty saving for the future. Evaluating your tax position each year to determine the impact of increased tax rates and planning for higher tax burdens should be accomplished with the help of a trusted advisor. Commitment to the tax planning process will help you navigate through an ever-changing tax landscape and make it possible to “pay yourself first.”

Here are some examples of tax planning topics we regularly discuss with our clients: