Most Americans can name all the major annual holidays – and one NON-HOLIDAY. A date that looms large in our collective conscious: April 15. Tax Day.
It conjures anxiety, fear and, for those who wait too long, panic.
The period leading up to April 15 is often referred to as “tax time.” But for the fiscally savvy, “tax time” is year-round, typically culminating in 4Q.
If you take nothing else from this article, remember this: after December there is little your CPA or tax strategist can do to off-shoulder your tax burden.
Here’s a real-life example: A PTA client is facing a $7.3million tax bill off $20+million in revenue. We’ve been working with him since May to:
- Curate from more than 1500 legal tax strategies within the 75,000 pages of IRS tax code
- Select and substantiate those strategies
- Activate and document each one
To illustrate why starting NOW is important, let’s break down those three points:
1. Strategy curation
Within the tax code lie a number of strategies designed to incentivize taxpayers to act on certain options, thereby reducing tax liability. Moreover, some of these very options offer deductions today AND continued revenue streams down the road.
2. Substantiation
Unlike other tax strategy offerings that provide you a list of strategies applicable to your situation, at Prosperity we substantiate each one – identifying how & why you qualify for each strategy selected. The outcome? Tax filing is a breeze. PLUS (and this is a big plus), it significantly reduces your audit risk – you have proven upfront why you are entitled to take these deductions.
3. Activate & Document
After selection and substantiation, and with a Power of Attorney (POA) from you, our team sets about activating each strategy. This means we fill out the forms, submit the paperwork, gain the approvals ensuring each strategy delivers maximum benefit for you. Look, this is not glamourous work. It is tedious and time consuming. But hey, this is tax strategy – no one signed up for fun!
You know the government loves its paper and paper trails, right? Hence, our documentation portion is a big effort. But this function separates A-players from simple service providers. We call it a “football”; it’s all the necessary citations and records proving we followed the tax code to the letter (meaning the ITS has nowhere to go and nothing to blame!)
TIME: The Critical Component
April 15 may occupy a special place on the calendar, but NOW is the time to start looking at 2025 tax year. Our process typically takes about 8 to 12 weeks. We work with a select group of clients to mitigate their taxes. Tax needs for our clients change year to year and our work is to ensure they pay as little as legally possible in taxes.
Prosperity is a small team of hand-selected experts across tax strategy, forensic accounting, tax law and seasoned CPAs. We do not use off-shore virtual assistants to run tax returns through software – we take a client-centric, artisanal approach. This means we’re deeply connected to your best outcome.
- It’s private.
- It’s personal.
- It’s profitable (or at least, a reduction in your tax bill, money back in your pocket and potential downstream revenue)