Tax Planning Service
Tax planning is proactive because many tax strategies require tax projections and tactical design in advance before you’re allowed to claim the tax benefits.
Tax planning is proactive whereas tax preparation is reactive. Tax planning is oriented towards strategy whereas tax preparation is oriented towards compliance. Tax planning requires additional time spent working on your tax situation outside of preparing your tax returns. The purpose of tax planning is to design and implement new tax reduction strategies for you. Tax planning generates a return on your investment from the resulting tax savings.
Earn an Immediate ROI
From Tax Planning
Many opportunities enable you to reduce your tax expenses immediately
to increase your cash flow.
Your tax savings potential can even be quantified in advance.
The Connection Between
Financial Advice and Tax Advice
Certified Financial Planners™ disclose that they aren’t providing tax advice,
yet almost all financial advice is based upon tax law.
Are you working with a Certified Financial Planner™ who’s also tax licensed?
What’s an Enrolled Agent?
Enrolled Agents are considered America’s Tax Experts®.
We’re federally licensed directly from the IRS.
The Enrolled Agent Advantage
Did you know that Certified Financial Planner™ professionals are not licensed tax professionals? Tax advice from CFPs isn’t regulated within IRS purview; CFPs don’t carry IRS practice rights and aren’t held accountable to IRS standards of conduct.
Treasury Department Circular No. 230 excludes CFP® professionals from the Internal Revenue Service’s list of authorized tax practitioners. §10.3 Who May Practice explicitly states that Certified Public Accountants (CPA), Enrolled Agents (EA), and Attorneys (JD) are allowed to §10.2(a)(4) Practice before the Internal Revenue Service if they comply with the Circular No. 230 regulations. JDs, CPAs, and EAs are afforded identical IRS practice rights.
According to §10.37 Requirements for Written Advice, JDs, CPAs, and EAs rendering of tax advice is considered Practice before the Internal Revenue Service. The Enrolled Agent license is issued directly from the Internal Revenue Service. EAs are bound to Circular No. 230 regulations including §10.22 Diligence as to Accuracy.
The CFP Board’s Code of Ethics and Standards of Conduct prescribes Duties Owed to Clients, including Integrity, Competence, and Duty to Comply With the Law which should, in my opinion, require a CFP® who provides tax advice to first become tax licensed. Does it seem ethical to you for someone who isn’t allowed to represent clients in IRS tax matters to provide tax advice?
Did you know that that the term “401(k) Plan” refers to subsection 401(k) of the Internal Revenue Code? How about IRAs, capital gains, etc? Yes, even the life insurance regulations are written into the tax laws from which we draw our knowledge to provide financial planning advice. Financial planning can’t be detached from taxation.
It’s true. When a CFP®, who isn’t also a CPA, EA, or JD provides you with tax advice, you’re not receiving tax advice from a licensed tax professional. Tax advice from CFPs isn’t regulated within IRS purview. CFPs are not licensed to practice and represent clients in IRS tax matters.
Is your Certified Financial Planner also a licensed tax professional who can provide you with expert tax advice related to your business, personal, and estate goals?
You might need to contact me to receive higher quality tax planning services.
John Boyle, CFP®, AIF®, EA, CTC, CEPA
Page Updated 10/04/2022.