Here are some of the main reasons your tax liability can increase:
- Increased income (salary, capital gains, winnings) Change in tax law
- Fewer deductions
- Wrong business structure
- Insufficient quarterly tax payments causing penalties
We find that clients want to know sooner than later if their tax liability will increase, especially if they can do something to avoid or reduce it. A tax planning session with LSL CPAs helps you avoid surprises and, in most cases, is more cost-effective than paying excess taxes and penalties.
If tax planning is right for you, LSL will review your tax files and deliver a prepared tax projection report. It will summarize your tax situation and estimated tax liability or refund. We’ll also outline strategies for minimizing taxes in the coming year. Don’t wait until tax time to explore your options.