Time for a Tax Strategy – During Covid-19 Pandemic?
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By Jason Arsenault ould your tax burden be the best way to defend this (temporary) new way of business? Even before Covid-19, your business was probably already paying TOO MUCH in TAXES. Even the Government Accountability Office (GAO) thinks you are overpaying. It is estimated that almost ONE BILLION dollars every year is overpaid in taxes due to mistakes, either by you or your tax preparer. The common way we do our taxes is to get through our year of business and then fill out the return and see what we owe. What you should be doing, along with your Certified Public Accountant (CPA), is planning how much you’re going to pay and when you are going to be paying it. You definitely want to legally keep more of your hard-earned money by PAYING LESS TAX. You have seen your tax return, and you know that this is one of your biggest business expenses. The goal for your business and CPA is to keep more of your money by using legal tax deductions along with loopholes. It is time you take control of your taxes in face of the pandemic and going
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forward. A well-designed TAX STRATEGY is going to look at each aspect of your business. That means identifying your different money streams. You might think of your business as one unit, but maybe you are a business that generates revenues from different sources like a retail/wholesale company. You are going to want to look at your investments and the strategies those provide as well as asset protection. Then after you have identified these areas, you continue coming back to grow your wealth. If you are in business, you understand how rapidly things can change and it is very important to find the correct partner who continues to consult you on ways you can save money through eliminating a high tax burden. Every business owner wants to pay less taxes. The majority of businesses are also going to be using someone to prepare their tax returns. It is highly recommended that if you are a business and prepare you own taxes that you stop. Both CPAs and Enrolled Agents can represent you before the Internal Revenue Service (IRS) if you ever have to be audited or explain a tax position you took on your return. This is a road that you don’t want to go down by yourself and you will definitely want someone who understands what information the IRS wants and how they want that information
