Tax Planning

One of our central concerns throughout the financial planning process is the reduction of your tax burden — to make your tax liability as low as is legally possible.  Many of us act as if tax planning occurs while filling out the various forms and schedules we file with the IRS by April 15th each year.  However, most true planning opportunities disappear by December 31st of the prior year — and many evaporate during the year as we act without evaluating the potential tax consequences of our decisions.

“Tax preparation” is generally a reactive process of taking information from the previous year and preparing the proper forms to file with the government.  In contrast, “tax planning” is a proactive process during which your future tax liability is projected and strategies developed to help you reduce your potential tax bill.

Our flat fee arrangement provides you with the opportunity to calculate the potential tax impact of your decisions before they become etched into your tax return.  Knowing the sources of your income and deductions — and being able to anticipate the impact of your actions as they occur throughout the year — allows us to avoid some unnecessary tax surprises.