Tax Return Preparation
I do my best to make sure clients are not surprised when April 15th rolls around. Hopefully, by working with clients during the course of the year, I can address potential tax problems in order that the tax burden may be reduced, or at least anticipated ahead of time. It's much easier to deal with a tax problem before it happens than after the fact. In many cases, advance planning can make a substantial difference in the amount a client owes when the return is filed.
With that being said, despite what your neighbor may tell you, there is rarely one magic way to reduce your taxes to zero, however, there are a lot of little things that can reduce the amount of tax you pay. I have had various people tell me about their buddy who doesn't pay any tax because they spend all the profits in their business, so they basically break even and don't owe any tax. What a lot of new business owners don't appreciate is that when you spend a dollar, you don't reduce your taxes by that same dollar, you only reduce your taxes by your marginal tax rate, say 25%. In my opinion, it makes little sense to spend a dollar to save 25 cents of tax. With some exceptions, the reality is the people that don't pay any tax probably don't have any money in the bank. If you pay $50k in tax, there should be a sizable balance in the bank. While it may represent a moral victory to pay the IRS nothing, most of us would trade that for a sizable sum in the bank.