David A. Paddock, MT, CPA
Income Tax Adviser
Our firm offers a wide range of services to our individual and business clients. Being a relatively small firm, we are able to offer our clients personalized quality service. Below, we have listed the services that we offer to our clients along with a brief description.
As the list below is by no means all-inclusive, please feel free to inquire about a service if you do not see it listed.
Tax planning is the process of crunching numbers for various scenarios to determine which course of action a client should take with a particular tax situation. There is an old myth that says tax planning takes place once a year during the preparing of the income tax return. This is entirely not true! Tax planning takes place throughout the year and culminates with the preparation of the income tax return. I work with my clients throughout the year on various tax planning issues to make sure they are paying the least amount of tax required by law.
Tools: I utilize software specifically written to assist me with tax planning. The software does not replace my years of tax experience and education, but it does allow me to formulate the problem and calculate results in a time-efficient manner.
Example: Client A wants to know the amount of tax due in connection with the sale of his/her business.
Tax consulting is not number crunching; it is more about theory than numbers. Tax laws are complicated so many times clients just need help understanding the rules and their options. Tax consulting can lead to tax planning with number crunching after a thorough conversation has taken place with a client.
Tools: I have made a significant investment in an online tax research library provided by Thomson Reuters. This library is invaluable to my efforts to provide my clients with relevant and reliable tax advice. This library is a distinquishing factor for my firm versus other firms my size.
Example: Client A wants to know the tax consequences for naming various individuals and organizations as IRA beneficiaries.
Tax preparation is the process of preparing federal and state(s) income tax returns.
Tools: I utilize tax preparation software used by many large public accounting firms to accurately and efficiently prepare returns for various types of entities including individuals, C corporations, S corporations, partnerships, limited liability companies, trusts, gifts, and not-for-profit organizations.
Client A owns a S corporation that operates in more than one state. My software allows me to prepare the S corporation return; link the return to the client's individual return; and import the Schedule K-1 information from the S corporation into the client's individual return without having to re-input the numbers.
Client B has a 30 page Form 1099-B reporting his security transactions. My software allows me to import the transactions from a data file provided by the client's broker which saves time and reduces the client's tax preparation fees.
Same-Sex Married Couples (SSMC) / Registered Domestic Partners (RDP)
Tax planning, consulting, and compliance for SSMC and RDP has become more complicated with the issuance of IRS Chief Counsel Advice (CCA) 201021050 on May 28, 2010. The CCA requires SSMC and/or RDP to split their community property income when preparing their federal income tax returns. Having a thorough knowledge of the community property rules and access to a tax research library (see Tax Consulting above) is crucial to preparing accurate tax returns for these clients. I specialize in this area of taxation and provide services to over 200 SSMC/RDP clients in my practice.
I have experience dealing with many taxing authorities and can ensure my clients that they are being properly represented before the various federal and state tax agencies.
A properly structured financial plan enables clients to face any financial challenge that may present itself at each stage of their lives. I work with investment advisors, attorneys, insurance brokers, bankers, and financial planners to help clients assess their financial needs and develop strategies that will enable them to achieve their goals and strengthen their financial security.
Business Entity Selection
Choosing the form of entity for your business (e.g., S corporation, C corporation, sole proprietor, partnership, limited liability company) is a critical decision that can have long-lasting tax implications. I can assist clients in evaluating the pros and cons of each entity type to help determine the most advantageous form of business for the company.