Minimize your taxes by tax planning. One can’t complain about their income tax obligations when they don’t do all they can to minimize the liability. The late great basketball coach John R. Wooden (one of my favorite sports figures ever) has a famous quote, “failure to plan is planning to fail”. We at Joseph F. Fragnoli, CPA, PC in Nashville, TN can’t express often enough to our clients and client prospects that tax planning is probably the most valuable tool a tax professional can offer to a client. The problem is that what defines true formal tax planning and what is just a projection and some informal planning steps is misunderstood in the marketplace.
Many taxpayers sit down with their tax compliance professional late in the year and do some tax projection calculations and compute the projected tax liability based on the numbers and then discuss a few steps they can take to bring down their tax position. This is a step that is okay and better than nothing, but it is not formal tax planning. Formal tax planning like that which our affiliate firm, Pinnacle Tax Planning Services, Inc. performs, is a process of looking at the individual’s or entity’s full financial picture and objective and then designing a plan that can meet the person’s total financial objective while minimizing their tax responsibility in accordance with the law. It is determining the appropriate strategies, setting up an implementation plan and following up to make sure the plan is implemented as designed and/ or appropriately modified as necessary. This service can frequently be the best investment a taxpayer can make. The tax savings will be a multiple of the cost of the service. If we can’t save the taxpayer a relatively significant tax savings, we won’t proceed with the planning and there is no charge for the process of determining the applicability of the service.
There is an old saying, “you can lead a horse to water but you can’t make it drink”. This really applies in the tax planning realm. You wouldn’t believe how many people we can tell about formal tax planning, the prospective savings and the related guaranty or no charge and yet they do nothing. Then, when you prepare their tax return they complain about their tax liability. I know many tax compliance professionals can relate. Readers, I can’t stress this enough, do proper tax planning, it will be one of the best investments you can make in yourself.
If you would like to know more about the formal tax planning processes that Pinnacle Tax Planning Services, Inc. performs or the related services that our Firm, Joseph F. Fragnoli, CPA, PC render please feel free to go to our respective websites and fill in the contact form or call me directly at (615) 513-5522.