Tax Planning & Compliance

"Over and over again courts have said that there is nothing sinister in so arranging one's affairs so as to keep taxes as low as possible. Everbody does so, rich or poor, and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is pure cant."
-Justice Hand in the case of Commissioner v. Newman. (CA-2. 1947)

It is safe to say that the subject of income taxes is rarely popular or exciting to most people. However tax planning represents an integral part of a company's or individual's financial picture. If handled in a haphazard manner or with no forethought, income taxes may hinder your company's ability to run efficently or may make it difficult for an individual to meet normal living expenses, save for the future or provide for college.

With tax laws constantly changing, even professionals have difficulty staying current with the lastest tax law and often there is no "right way" to handle many situations. Tax law is frequently subject to interpretation with knowledge and experience playing a very important role.

Businesses, trusts, self-employed and high net worth individuals generally have complex tax considerations that require an experienced tax professional in order to assure compliance of the law. Business entities are frequently liable for payroll, sales, unemployment, franchise, replacement and income taxes as well as many others. Similarly, individuals and trusts have many tax concerns too.

Obviously taxes are too complicated to be left for a last minute planning session with an inexperienced preparer. A workable tax strategy specifically suited for the taxpayer developed with the assistance of a qualified tax professional should yield optimal results.

 

 

© 2008 Steven L. Lopata, CPA Ltd. ALL RIGHTS RESERVED.