“Larry” owns a large consulting business and reached out to us in 2019 because his accounting was in bad shape and his investors were unhappy. We started with QuickBooks cleanup services, but Larry quickly saw the value of working with us and hired us to prepare his partnership and individual income tax returns, as well as to help him with tax reduction planning.
As we closely follow all updates to regulatory changes to the tax code, we were able to see Larry had Net Operating Losses (NOL) in 2020 – and could carry these losses back to years when his company showed profits. We amended his past income tax returns and requested a refund from the IRS. By taking the time to analyze his income tax returns, and by having a firm grasp of current tax law, we were able to save Larry almost a hundred thousand dollars with just one strategy! Larry was not aware he had access to such tax savings.
In addition, because Larry’s company was on track to high profits in 2021, we were able to pinpoint a variety of other tax reduction strategies to mitigate future taxes.
While the $100,000 tax savings from carrybacks of net operating losses was just a one-time strategy, his recurring tax savings thanks to his tax plan will be over $70,000 in 2021 alone.
This is a combined savings of almost $170,000 in two years – and a potential $450,000 over a period of 5 years.
This is the magic of having an expert Tax Reduction Strategist analyze your taxes.