What does Proactive Tax Planning mean?

Tax planning should always be a key focus when reviewing your personal financial situation. One of our goals as financial professionals is to point out as many tax savings opportunities and strategies as possible for our clients.

Sean K Butler, CPA, LLC does NOT just prepare taxes; we plan and implement strategies to lower your tax bill. All plans and strategies are discussed in plain English so anyone can understand them. Whether you are fighting back or fighting for what is yours, we understand, agree, and are here for you. It is your money, you earned it, let’s not give the government any more than the legal minimum.

Proactive Tax Planning is not likely something you are receiving from your average tax preparer or accountant. This is because:

1) Most tax preparers and accountants only understand a small portion of the tax code. Instead of being future focused, they are more interested in historical record keeping. While some may provide reactive tax advice, they are unaware of how to proactively and strategically make the tax code work in your favor.

2) Tax preparers and accountants are likely to have Type-A personalities. While that’s great for plugging numbers into boxes, it means they probably aren’t flexible or open to change. A strategic tax planner must take into account the small business owner’s lifestyle, short and long-term financial goals, and spending habits.

3) Tax preparers and accountants err on the side of caution. Though there are over 70,000 pages of green lights in the tax code, tax preparers tend to focus on the five pages of red lights to avoid being flagged by the IRS. It’s important to understand, however, that a green light is not the same as a “loophole.” It’s not a “red flag” to go through the intersection and it does not increase your risk of getting a ticket because you “used” this particular law to get through the intersection. Remember, the tax code was meant to be used, not feared.