As a CFO too many times when I’ve reached out to clients’ CPA firms or other tax preparers to evaluate tax strategy or implement final Q4 tax saving implementation the reply has been “but we don’t have a draft of the tax returns yet” – yes that’s exactly the point. That’s when you do tax planning – not when it’s way too late and you’re about to file the returns. You develop an initial plan, update the plan annually, and then review what additionally can be done to proactively manage income tax obligations in the fall - when there is still time for final adjustments.
Also, when inquiring as to whether tax credits (R&D, employment, energy, real estate etc.) have been evaluated for the current year the reply is often a blank stare or “Why?” from both the client and the tax preparer. That clients are not aware makes sense – that’s what they pay their advisors for. That the tax preparer hasn’t on the other hand….
Once your Q3 or September financial statements are drafted your accounting and tax advisor should schedule a meeting with you. If the year has been much better – or not quite as good – as projected now is the time to adjust the tax planning.
Middle Market Advisory is holding a series of webinars via Eventbrite to educate and update private business owners and their executive teams on tax and related issues, please sign up on Eventbrite and follow us for webinar announcements: https://www.eventbrite.com/o/middle-market-advisory-llc-61777414853