What Is Tax Planning?
Tax planning is the process of analyzing a person’s financial situation and applying strategies to pay the lowest amount of taxes based on their facts and circumstances. Tax planning considers many factors, including tax credits, tax deductions, investments and expenditures. At its core, tax planning is about understanding how business and life decisions affect the largest expense most people have — taxes.
The Truth Is
Most of your clients believe you are already tax planning for them throughout the year. But for the most part, tax professionals are focused on compliance and are not proactively working to save clients money on taxes. That all changes with Corvee.
Why Is Tax
Planning Important?
There Are 2 Problems With How Individuals & Businesses Pay Taxes
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Taxpayers are overpaying in taxes by filing returns that don’t reflect their facts and circumstances.
Example: A taxpayer overpaid their taxes, which was the result of incorrectly filing or missing three items that, properly filed, would have resulted in tax savings.
Taxpayers are overpaying in taxes because they aren’t aware of tax strategies they could implement.
Example: In addition to fixing their incorrect filings, the taxpayer can implement four tax strategies for more savings. With these corrections and strategies, the taxpayer can obtain substantial savings.
How We Can Help Solve
These Challenges & Lower
Taxes for Your Clients
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Calculate Taxes Owed
estimates how much tax will be owed for individuals and businesses.
Recommend Personalized Strategies
Based on the specific tax scenario, we recommend strategies to lower taxes.
Help Clients Realize Savings Fast
Most clients can easily input information and realize tax savings in minutes.
Tax Planning Is
Proactive, Not Reactive
For decades, tax professionals have scrambled at the end of the year to file tax returns based on events that have already happened. The relationship is typically an annual check-in with no ongoing consultation. Because of this, fees are low.
By contrast, tax planning is a year-round service. Tax planning professionals help clients make the smartest tax decisions when they need it most — before the decisions are made, and long before the year is over.
See how much tax they’ve paid, how much they are projected to owe and proactive strategies you can present to lower taxes. This ongoing relationship is advisory and adds value, so the fees you can charge for tax planning are much higher.
Tax Planning Is About More
Than Just Tax Preparation
Filing accurate forms for tax compliance is essential. While you may know a few strategies, running thousands of strategies across multiple entities and years has never been possible until now.
Planning allows you to be a valuable partner. You’re not just preparing tax returns at the end of the year — you’re strategizing with your clients on the tax implications of their business decisions before they make them.
Strategies
Alongside Forms
Typically, tax professionals have focused on tax forms when helping clients manage and pay income tax. But with tax planning, we can use strategies across the following categories to help clients make smarter tax decisions before filing forms for compliance.
- Advanced strategies
- International asset and gift freeze
- Tax-advantaged wealth management
- Exit and capital gains
- Current law vs. tax proposals
- Maximize deductions
- Legal entity structures
- Retirement planning
- Insurance and asset protection
- Tax Cuts and Jobs Act (TCJA)
- Families First Coronavirus Response Act (FFCRA)
- Coronavirus Aid, Relief, and Economic Security Act (CARES)
Multi-Entity Matters
Most tax pros focus on one entity at a time. File the 1120. File the 1065. File the 1040.
But we know that every business decision affects the 1040. And every decision you make on the 1040 affects the business due to flowthrough and dividend tax rates.
We created Corvee tax planning software to allow for multi-entity planning, where you can see the effect of all your decisions across all entities and years in one consolidated, multi-entity tax calculation.
Clients Deserve It & Will Pay More
Whether your client is brand new or has been with you for 10 years, they deserve one thing: smarter tax decisions.
They may choose to do something that results in paying higher taxes, but with tax planning, you’ll be able to present them with options before they take action
It’s Who You Are
ou’ve dedicated your career to being a tax advisor. Before now, understanding how tens of thousands of tax forms, strategies and industries work hasn’t been possible.
By offering tax planning, you can turn tax into a year-round business by helping clients save money with Corvee.
Ready to get started?
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