Tax Planning for the Average American

If you’re like most folks, you hand your CPA last year’s financial info at the year's end. The CPA prepares a proper tax return in compliance with IRS rules. The tax work is done in arrears, meaning your tax professional records the history of what was done and how finances were allocated in the past. Tax Planning is very different, it’s proactive rather than reactive, dynamic and future based. This gives you the ability to decide in advance the most tax efficient ways to account for your financial moves. It brings a strategy to your taxable, or soon-to-be nontaxable, affairs. The point is that the tax savings you may find for 2018 after December 31, 2018 are much less than those you will achieve by executing personalized tax strategies throughout 2018. The forward looking process is where all big tax savings begin. 

Most people do not realize that taxes are a line item cost and as such are controllable. If you plan to accrue some real wealth in your lifetime, you will have to plan to control tax costs as well. The average American will pay more in taxes than they pay for food, housing, clothing and transportation combined. That is too much!

Warren Buffet has bragged for years that his tax rates are less than anyone in his employ at Berkshire Hathaway. The company has over 360,000 employees. Over the years, plenty of IRS agents have heard his snooty comments and tried to prove him wrong in the form of audits. They all failed. Don’t get mad… get even.  As an added bonus:

Tax Planning Reduces Audit Risks

Finally, some tax work you’re happy to buy. How about trading a $5 bill for a $20 bill? Now that’s tax work that pays for itself over and over again. Unless you have a written Tax Plan prepared by a licensed tax professional and you use two or three high-tech software and smart phone apps to execute and track planning results… you’re likely overpaying. Finally, technology has now made tax planning affordable for everyone.

We at Capitol Tax Advisors are not trying to snatch you away from your current tax professional. Call us and we will happily show them the new advances in software, apps, services and systems that put money back in your pocket.

Tax Software, Apps and Tools

Practically speaking to reduce your tax liability you’re going to need some tools. Here at Capitol Tax Advisors we offer a number of excellent, high tech tax savings tools. Of course, everyone’s needs differ, but we’ve found that most people will see the biggest, quickest tax savings from a combination of tax planning, education, and better ongoing maintenance and bookkeeping. We’ve got many tools that will greatly enhance these items, and more. 



A well-prepared Tax plan is the best tool with which to begin. Typically, your personal Tax Plan will run 20–60 pages. It will include a number of quick-start strategies, the tax code backing up those strategies, deadlines, clever ways to legally use tax law to your advantage, warn you of potential red flags and common mistakes, and advise treasury decisions on the matter at hand. This type of education is easy to use and understand. Your tax professional will prepare and explain the Tax Plan to you and answer your questions. 

After you recieve your personalised Tax Plan, Capitol Tax Advisors will recommend several products and services to enable you to properly execute and maintain your Tax Plan and it's strategies. We have partnerships, affiliations and suggestions regarding a number of these services. If you’re like most people, reading not to mention understanding, twenty-million plus words of the federal tax code, regulations and court decisions is not a realistic solution. What you need to learn is what is relevant to you, your finances and personal preferences. Why waste time and money on full-blown systems and literature that is often irrelevant to your personal circumstances. A well-prepared Tax Plan is the only good place to start. And it's better to take the guidance of professionals that are trained and work with these matters daily.

The best thing is to call us (800-940-1098) and we will talk to your current tax professional and help guide them to the best software for your situation…. We have tools for tax professionals as well. 

If you don’t own a business already… Here’s some free education: Consider starting a small business to take advantage of the significant tax savings you now miss.