Please note the information below is intended to provide generalized information that is appropriate in certain situations.  It is not intended or written to be used, and it cannot be used by the receipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer.  The contents of the information provided below should not be acted upon without specific professional guidance.  Please call us if you have any questions. 

As CPAs, we know that over a persons lifetime, they will come to several key points in life where the choice they make has significant financial implications.  Almost everyone considers the four events listed above as a key point to consider working with a financial advisor, most often a CPA.  These are the obvious choices but they are even more complicated than most clients realize.  For example, consider these nuances to these four milestones:

After all of this, the one big recurring financial transaction that is often overlooked as a key planning tool is the actual tax return.  So many see it as an annual rite or obligation, but CPA tax practitioners know that the 1040 is just the beginning of the story.  By evaluating what is on (or not on) the tax return, asking probing questions and watch for trends and changes over the years, CPA tax practitioners are uniquely situated to provide holistic financial advice that considers all the major milestone while simultaneously consider the tax implications (and planning opportunities) all along the way.

Tax Planning is more than just April 15th

Tax compliance is about getting the tax return right.  It is always an after-the-fact process where we review what happened last year and translate that activity into numbers on a tax return.  But, that should only be the beginning.

While tax compliance ends with a finished return, tax planning starts there.  Then we look at what went right and find was to repeat them.  We evaluate what went wrong and find was to avoid repeating costly tax mistakes.  We step back and look at the big picture to see what we can be doing differently that may change the outcome on future returns – some strategies are short term (e.g., fix withholding) while others are long-term (e.g., set up an new retirement plan).  We also anticipate major financial events and review them to determine their tax consequence.  By engaging in the tax planning process, you take the guess work and anxiety out of the tax return process.  Going forward, you learn to anticipate and manage your tax situation, instead of accepting it as inevitable.

CPA Approach

A CPA tax practitioners takes a holistic approach to a client’s financial situation, using the tax return as a guide. We are uniquely positioned to integrate tax implications of financial decisions and events (big or small) and advise and help our clients understand how they affect their overall financial plan. What is the loss to your investment portfolio when you do not consider the after tax return on investments? What is your additional estate tax liability when you don’t consider current and future tax implications in your planning decisions.

We’ll identify and address areas that require immediate attention based on prior year returns while also anticipating new strategies and tax planning opportunities.  We also step back and connect your current situation to your long-term goals.  Do your planning strategies make sense for the long-term? Are there any potential catastrophic outcomes that need attention sooner rather than later.

As you can see a CPA works with you beyond the tax return and takes a holistic approach to tax services.  We work year-round and are available to answer questions during the year and at key milestones over the life of our clients.