Tax Planning

& Consulting

Jacobsen & Wachterhauser, PLC offers tax planning and consulting services that involves the process of structuring our client’s affairs so as to minimize their tax liability and maximize their tax return. In other words, our goal is not to just have our clients pay the least amount of tax, but to capitalize on after-tax cash flows.

We closely follow reliable and proven tax planning principles, including (i) shaping the plan to the client’s needs and desires, (ii) keeping sufficient records, (iii) forecasting the effect of future events, basing the plan on sound legal advice, (iv) supporting the plan with a sound business purpose, (v) not carrying a good plan too far, (vi) making the plan flexible, (vii) integrating the tax plan with other factors in decision making, (viii) conducting research to learn whether a similar plan has previously proved unsuccessful (i.e. a prior court case with similar circumstances where a decision may have been in favor of the IRS’s position), (ix) considering the maximum risk exposure to the client (i.e. the disallowing of the tax plan by the IRS and the economic impact it will have on the client), (x) considering the effect of timing (i.e. such as a tax credit or law which makes in more beneficial to take a deduction in one year as opposed to another).

We are always available to assist you. Our offices are conveniently located in the Camelback area in Phoenix; to schedule a consultation, click here to contact us.

What is tax research? What is the purpose of conducting tax research?
Tax research is the process of locating information – tax laws, tax codes, and tax policies, often in effort to perform accounting or auditing work. An accounting professional may conduct tax research when unsure about how to either document or report a taxable item.

The purpose of conducting tax research is to either solve a problem or to determine tax liability for specific taxpayers.
Client-oriented tax research occurs in two contexts – closed-fact or tax compliance situations, and open-fact or tax-planning situations.

Closed-fact basically suggests that the facts regarding a completed transaction cannot be modified after the transaction. This type of situation allows for limited tax planning. Open-fact, on the other hand, is much more geared towards tax planning, as this approach allows an accounting professional to provide tax planning assistance prior to completing a transaction.

The tax research process is often a six step process: (i) determine the facts, (ii) identify the issues or questions, (iii) locate the applicable authorities, (iv) evaluate the authorities and choose those to follow where the authorities conflict, (v) analyze the facts in terms of applicable authorities, and (vi) communicate conclusions and recommendations to the client.

Several tax research procedures can be applied to build a solid case for the client. Through conducting extensive research about the topics at hand throught administrative and legislative sources, including the IRS, FASB, ATA Journal, and the FASB Codification System, accurate assumptions about the tax laws and principles can be applied.

Additional Taxation Information:

• Unstated Interest
  Definition of Unstated Interest: Interest which must be determined and the sale price lowered by this amount when interest is not stated in an installment agreement or the interest rate applied is less than the applicable rate. […]
• Vacation Home
  Definition of Vacation Home: The Tax Code places limitations on taxpayers who rent their residences or vacation homes to others during part of the tax year. The limitations may result in scaling down of expense deductions for the taxpayer. […]
• Vested Benefits
  Definition of Vested Benefits: Pension benefits belonging to the taxpayer. […]
• Wash Sale
  Definition of Wash Sale: A Wash Sale is when a purchase of substantially similar stock or other form of securities within 30 days before or after the sale of the similar stock or security at a loss. A taxpayer cannot claim a wash sale loss; instead, the loss is added to the basis of the [...] […]
• Welfare to Work Credit
  Definition of Welfare to Work Credit: A tax credit for employers that have hired workers from welfare rolls. The Welfare to Work Credit is claimed on Form 8861. […]
• Widow (Widower)
  Definition of Widow (Widower): A woman (man) who hasn’t remarried subsequent to the death of her husband (his wife). Additional Widow (Widower) Information: […]
• Withholding Allowances
  Definition of Withholding Allowances: A credit available to employers who hire employees from certain destitute groups. The credit is claimed using Form 5884. Additional Withholding Allowances Information: […]
• Work Opportunity Credit
  Definition of Work Opportunity Credit: A credit available to employers who hire employees from certain destitute groups. The credit is claimed using Form 5884. Additional Work Opportunity Credit Information: […]
• Worksheet
  Definition of Worksheet: Documentation of compiled information that is usually not sent to the IRS with a tax return. Additional Worksheet Information: […]
• Worthless Securities
  Definition of Worthless Securities: A loss is permitted for a security that becomes worthless during the year. The loss is considered to have occurred on the last day of the year. Special rules apply to securities of affiliated organizations and small business stock. Additional Worthless Securities Information: […]