Financial PlanningTax PlanningTaxesWealth Management

Three simple steps to tax nirvana

The view from my office in New Jersey; a ‘happy place’ that enables me to deal with the challenges of client tax matters.


Taxes are perceived differently by each individual even though the overall set of chaotic rules is the same for all of us. Yet when it comes to dealing with that chaos in a manner that leads to peace and prosperity, the process always involves the same three steps:

  1. Resolve past problems. Old issues don’t go away by ignoring them. By facing them head-on, we can reach workable solutions. A CPA experienced in representation and resolution can make all the difference in opening the door to a clear pathway ahead or, in severe cases, a new financial beginning.
  2. Have a system for handling current compliance. Tax compliance doesn’t happen by accident. Like many things in life and in business, it happens when there is a prearranged and semi-automated system with work agreements in place. This is essential work contained in a CPA’s client accounting service contract.
  3. Plan for a future with lower taxes. Lowering future tax liability is much easier than most people realize but it takes time and discipline. Like any business plan, it requires a smart strategy, properly executed and updated when appropriate. Tax efficiency is an evolving matter, not a static target. The keys to success are persistence and a strong relationship with your CPA.

Old tax problems can be solved. Current tax compliance can be automatic. Future taxes can be avoided. All of this is available through your personal choice.


Footnote:

A discussion of the word “nirvana” may be appropriate here. Merriam-Webster defines it this way:

1the final beatitude (see BEATITUDE sense 1a) that transcends suffering, karma, and samsara and is sought especially in Buddhism through the extinction of desire and individual consciousness
2aa place or state of oblivion to care, pain, or external realityalcohol-induced nirvanaalso BLISSHEAVEN The resort is a skier’s and snowboarder’s nirvana.
ba goal hoped for but apparently unattainable DREAM
My point in using the word here is that reality and its inherent risks never really go away. “Death and taxes” remain inevitable. But rather, these burdens and risks can be managed in a way as to not impair the happiness of the individual.
 

Leave a Reply

Your email address will not be published. Required fields are marked *