Pro-Active or Reactive? No surprise if I say I’m proactive.
Year-over-year I hear clients who owe taxes swear they are going to do things differently “next year.” I can’t believe I’m saying this, we are closing in on the end of the second quarter of 2018 (I know already). I am wondering how many of you know where you stand tax wise. Have you implemented those new habits?
My practice primarily deals with reactive action to tax debt situations generated by payroll expenses, self-employment taxes, etc. All which can come with their own unique problems and substantial penalties. It should be noted the majority of my clients are extremely hardworking people. There are multiple reasons and situations which have contributed to these tax issues. Not the least is once a problem starts to grow it can become overwhelming very quickly. This then means when working to bring a taxpayer compliant, I have also to know the future tax implications and build a plan which will allow the client to both pay back tax amounts and remain current (compliant) going forward. Not all representation cases are non-compliance or under-payment issues, it could simply be the time has come for the Internal Revenue Service (IRS) audit reviewing a particular type of tax filing.
In representing clients before the IRS, it gives me a solid foundation in taking a more proactive/advocate approach for our tax preparation clients. Providing quarterly reviews for our businesses, discussing financial changes with individuals prior to execution, and if necessary, I develop an action plan for potential reduction or payment. The final step would be the client to choose to implement these plans.
Additionally, being proactive means, I spend time consulting with new/emerging and growing businesses. Doing this either be one-on-one or through workshops held in partnership with other professionals Mary McDirmid & Christal Lam. I discuss tax topics to consider when beginning a business, consideration to hiring employees and if you may be moving toward independent contracting. We still have seating available at the upcoming Business 201 Workshop, June 12. Business 201 Workshop – reservations here
So, I am urging you before you hit the lakes, trails and road this summer, have a discussion with the tax professional in your life. Let’s move you from being reactive to taxes to taking charge of this “thing” and being proactive.