Sunday, April 22, 2007

Tax Season is over, but Tax Planning Isn’t

The 2007 tax filing season is over and I’m sure many accountants and tax professionals are looking forward to some vacation time. There are however, the people that filed extensions (as always), and the IRS has extended the deadline for the following groups:

Northeast storm victims have until April 26 2007 to file their returns
Virginia Tech Shooting victims have until October 15 2007 to file
Intuit customers had until April 20, 2007 to file due to a “database” problem

There is still a little work out there for everyone to focus on before these deadlines past which makes it a great time to continue tax planning for the current year. Many individuals and small business owners think that tax time is the only time for planning. When this attitude is taken, the filer along with the accountant take on a reactive role instead of a proactive role in planning for the future. It is more beneficial for the filer to work proactively with their tax advisor before making major purchase decisions and/or any changes in the strategic vision of the company. This way the accountant along with the tax filer can work out the best scenario to minimize their tax liability for the year. Typically your tax planning should be done on a quarterly basis unless there are major changes during the quarter. In the coming weeks we will address some of the tax law changes and how they will affect your 2007 tax return filing in 2008. Be sure to check in for these tips may assist you and your accountant in keeping your Business N Synergy in 2007.

We are already in the 2nd quarter of 2007 so tax planning should be an integral role in your overall strategy.

Brian N. Stovall

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