Every business has a story and it’s important for a strategic tax planning professional to understand a business’s situation and goals. That unique narrative informs the professional on how to structure the tax advisement.
Below is what can be expected during the strategic tax planning process:
- Basic information about the business is gathered to determine project feasibility. It includes the recent income statement and balance sheet; first five pages of the most recent corporate tax return and personal tax return for the owners; current fiscal year projections; and ownership structure.
- Once the engagement commences, more detailed information is analyzed. It includes 3 years of corporate and personal tax returns; 3 years of business financial statements; estate planning documents such as wills, trust etc.; an employee census; any buy / sell agreements or other succession plans currently in place between the owners; tax returns of any affiliated entities; personal financial statements for each owner; real property depreciation schedule, etc.
- Strategy is developed. After all the information has been analyzed, the strategy is developed, and several reports are created which detail the strategy and recommendation.
- The comprehensive report is presented. The strategic tax planning professionals present the reports that detail the strategies, all of which are supported by law. The professionals will then work with the business to ensure proper implementation of the strategies.
The strategic tax planning process and strategy development provide a holistic approach to look forward to determine how a business can enhance its tax efficiency. Is strategic tax planning a process that’s right for your business? CSH professionals can meet with you to determine if it’s likely to provide a return on your investment before you engage the service.
Further resources for understanding strategic tax planning:
