Pain in the Taxes
Benjamin Franklin said, “The only things of certainty are death and taxes,” neither of which we look forward to. No one likes to talk or think about their taxes; however, hiding under our proverbial blankets until April 15, and hoping for the best, is a sure-fire way to pay more and keep less. Like many of us, I employ an accounting firm to be sure that I am not paying more than I should. But what I have found is that while many accountants are great accountants, they are not always great tax strategists.
The tax law is continuously changing, with major legislation, court cases, and IRS rulings frequently appearing throughout the year. Many of these developments present positive tax opportunities, IF you know they exist, and you act on time. Waiting until the annual meeting with your accountant may be too late to learn about, and act, on these opportunities. (Wasserman, 2020) The tax code is thousands of pages long with tens of thousands of pages of regulations. There are thousands of pages more of IRS guidance, along with volumes of court cases interpreting all those laws, regulations, and guidance. Last year, a member of our team had the pleasure of meeting Don Rasmussen, a Certified Tax Strategist (CTS). I didn’t even know that someone like him existed. Don has made it his mission to know the ins and outs of the rules and regulations and help business owners take advantage of every opportunity to save money each tax year. He helps his clients look at their taxes from a new perspective and saves them thousands of dollars.
In his book, written for chiropractors, Don identifies the top 10 tax mistakes that chiropractors make. A quick and easy read, this book was eye-opening.
The mistakes are:
Mistake 1: Failing to Plan
Mistake 2: Audit Paranoia
Mistake 3: Wrong Business Entity
Mistake 4: Missing “Qualified Business Income”
Mistake 5: Wrong Retirement Plan
Mistake 6: Missing Family Employment
Mistake 7: Missing Medical Benefits
Mistake 8: Missing Charitable Deduction Optimization
Mistake 9: Missing Car and Truck Expenses
Mistake 10: Missing Meals and Entertainment
It didn’t take long after reading his book for me to realize I had not been taking advantage of every opportunity to minimize my tax burden. I was surprised by how much money I was wasting in taxes each year. The thought crossed my mind that what Don said was just too good to be true, and since I believe firmly in “trust but verify,” I learned that everything he recommends is court-tested and IRS-approved. He employs a former IRS agent to review every tax plan he recommends for additional peace of mind. I was so impressed by his book that we invited him to provide an educational webinar. The webinar covered how chiropractors can qualify for R&D tax credits for things they do at the office every single day that will allow them to get a dollar-for-dollar reimbursement check back from the IRS.
Maybe you won’t learn as much as I did from Don, but maybe you will. As Don says in his book, “You have nothing to lose but taxes, and you possibly have thousands to gain.” Click here to watch the webinar. You can also request a free copy of his book.