The Martin J. Reitinger CPA firm provides services to closely held businesses and individuals in the San Francisco bay area. The foundational principle of the firm's business model is to provide solutions to the clients problems.
Providing solutions to clients problems involves a process of identifying potential problems before they arise by advising the client to avoid the danger zones. Two examples will support this idea.
Example-1 Business Client
The best defense against an audit from any taxing agency is to maintain a pristine set of books and supporting records. This process starts with the selection of a suitable chart of accounts and the proper classification of transactions. The key is to lay down a trail that can be followed backwards and forwards. In support of these books and records the business must document all transactions. Proper documentation of transaction can save the day when facing the un-forgiving eyes of an IRS auditor In this case, by maintaining a pristine set of accounting records and supporting documentation, the client will zip through the audit.
A common problem for some individual taxpayers is how much to pay toward estimated taxes during the year. Taxpayers with substantial investment income need to provide for estimated taxes each year. In many cases 2-earner couples run into problems with underpaying their income tax during the year. Underpayment of income taxes may result in underpayment of tax penalties. To avoid the underpayment of tax problem, we will project the subsequent years client tax bill and either recommend an estimated tax program or a change in the clients tax withholding program. By taking the aforementioned actions, a potential problem will be avoided and more importantly the client will not be facing the unpleasant surprise of a big tax bill at year end..
In conclusion, we work with the clients to steer clear of the danger zones and seek out the green light operating areas of both business and individual income tax rules.