Tax planning is making use of various strategies to reduce one’s tax liability as low as possible. Tax planning can consist of an analysis of multiple-scenarios and financial situations in order to help the taxpayer take advantage of every available means to lower tax liability and maximize after-tax income. Unlike tax evasion and fraud, tax planning is lawful.
In contrast to tax preparation, tax planning is a year-round process that takes into account past tax filings, current financial situation and regulations, and future financial goals, and their year-round activity. Successful tax planning strategies therefore require ongoing communication between a business or individual and their tax planner. Tax planning is a more long term process and sets plans for immediate as well as long term benefits.
At UltraPrecise Tax & Accounting Service, we use specialized Tax Planning software to calculate taxes owed, recommend strategies to lower taxes, and help clients make the smartest tax decisions when they need it most — before the decisions are made, and long before the year is over. Most clients realize tax savings in minutes.