 INCOME
TAX PLANNING
AND RETURN
PREPARATION
We will prepare
all required federal and state income tax returns based on our
interpretation of the current government tax laws, regulations, rulings
and judicial precedents. In
preparing these returns, we will rely upon the correctness and
completeness of supporting documents and other data furnished to us by
you, as well as any relevant information, which we may already possess.
Monitoring
Legislation
We do not audit
our client’s information and wherein you have questions concerning the
tax data submitted to us, we encourage you to consult with us concerning
the items in question. Of particular concern to us is new tax legislation.
These laws, which go into effect at various times during the year,
have far reaching tax ramifications.
It is our goal to advise you of all phases of the new tax
legislation, which may affect this, and future years’ returns.
To facilitate this goal, we prepare and distribute legislative
summaries annually.
Proper and
constant tax planning is essential to the preparation of tax returns.
This philosophy is of primary concern to our entire professional
staff. It is the foundation
upon which our Company has served our clients and maintained our
reputation. Such planning includes the monitoring of income and expenses
during the year and timing of income and expenses at the end of the year
with proper regard to the annual changes in tax rates and the fluctuations
in your income and deductions.
We encourage you
to consult with us frequently during the income year, so that we may have,
at all times, an estimate of potential tax liabilities.
This will enable us to proactively strategize for purposes of
minimizing income tax burdens.
Implementing
Our Strategies
Although tax
planning is a highly productive exercise, it is also one that requires a
commitment from you as the client; for it is the client who must provide
us with that information necessary so we may project the tax consequences
of the various activities undertaken during the year.
Once a client has
committed the time necessary to format and follow up on various tax
planning strategies, then we are assured of a meaningful and productive
start to a solid financial plan which includes those steps necessary to
maximize the earnings which can be retained by the taxpayer.
Periodic income
tax and financial planning may include quarterly, semi-annual or annual
meetings. The nature and
frequency of such tax planning meetings is individually tailored to the
nature and complexity of the individual tax client.
In your case, I recommend that you participate in formal tax
planning conferences on a quarterly basis, in addition to our other
anticipated meetings.
Return
Preparation
Tax return
preparation, or compliance, is performed during the first few months of
the year. We urge you to
compile and submit data to us early, even if you are missing certain data,
so that we may have adequate time to advise you of potential tax
liabilities or refunds before the April 15th individual,
partnership, trust and LLC return deadline.
Please be alerted to the fact that extension requests which can be
submitted, extend only the filing due date of the paperwork, not the due
date of the income taxes. All
income taxes must be estimated and paid by the due date, because if a
taxpayer substantially underestimates his liability, penalties and
interest may be assessed.
For our
individual tax clients, we distribute a tax-planning Organizer in December
that has preprinted all of your individual data from the prior year’s
return. We then discuss the
current year changes in your tax data, so that we may more accurately
project the year’s tax liability. For
all new clients, however, we must obtain prior year returns and enter the
date into our computers. Therefore,
upon joining our firm, we ask that you forward to us a complete copy of
the last two year’s tax returns so that these amounts can be included in
the current year’s Organizer to help you in completing the task of
gathering your tax return information.
We will then update this data annually.
Wide Ranging
Expertise
Please know that
we have the ability to prepare income tax returns in all 50 states and
Canada. We also prepare all
required city income tax, franchise tax, sales tax, business license tax,
general excise tax and payroll tax returns for corporation, partnerships,
limited liability companies and as necessary, trusts and as necessary,
estate tax, gift tax and GST tax returns.
Finally, since
the administration of our tax system is dependent upon interpretation and
verification, it is possible that issues may arise which will result in
the examination or audit of your tax returns.
In the event you receive such a request from any Government Agency
in connection with a return, which we have prepared, or in connection with
a return that a prior accountant may have prepared, we will be pleased to
represent you. For such
engagements, we will render additional invoices outside your annual fixed
price agreement at our standard rates with a retainer payable in advance
of our preparation for the examination.
Fees for representing you in an audit cannot be included in the
annual fees quoted at the end of this proposal, for experience shows us
that audits and examinations are unusual and unlikely.
A copy of our audit engagement letter is available for your review.
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