Anticipating the tax consequences of business decisions
Our tax consultants serving professional services firms are committed to finding new and creative ways to help clients optimize their tax positions. You will appreciate that they can draw on their experience serving more than 400 professional services providers to help you find the best business approach with the preferred tax results.
As tax specialists with business savvy, you can also depend on them to understand that decisions cannot be driven solely by tax results. The focus of our tax team is on tax planning and tax consulting, so that tax compliance issues (such as preparing and/or reviewing federal and state tax forms) are a byproduct of that planning.
Understanding state tax issues
For professional services firms with business activities in other states, complying with state taxes has become a major concern and very time consuming. You can benefit from the broad and deep knowledge of our state and local tax team (SALT). The SALT team can help you navigate the complex area of state and local taxes and reporting to help you minimize your liabilities.
For instance, because the leaders of our SALT team were involved in the early development of the new Michigan Business Tax (MBT) they know it well. And you will benefit from that knowledge when they use it to help minimize the impact of the MBT on your bottom line.
Dramatic examples of saving
Many accounting and business advisory firms say they will help you find opportunities to save on taxes. But few can match the dramatic success stories that Plante Moran can share about the success of its tax consultants in helping professional service firms minimize their tax liabilities.
Converting to cash method of accounting
Plante Moran tax specialists have had a series of major successes for clients by gaining approval from the Internal Revenue Service (IRS) to change their tax method of accounting from the accrual method to the cash method. These changes have resulted in savings of hundreds of thousands of dollars for our clients, who now pay taxes on revenues only when the cash is received.
Gaining approval from the IRS for these conversions was not easy, but creative and persistent Plante Moran tax consultants got them done. If your receivables are significantly higher than your liabilities, you might consider exploring our tax consulting services and asking one of our tax specialists to review your tax situation to determine if you qualify for this kind of tax-saving conversion.
Tax Planning for mergers and acquisitions
If you are considering growing your firm through mergers and/or acquisitions, you will find our tax specialists, including merger and acquisition advisors, can be extremely valuable. You can depend on them to structure the transaction to maximize your tax benefits. As part of its expertise in transaction analysis, our tax team has also been extremely successful in analyzing transaction costs, allowing for significant acceleration of deductions. These costs include items such as success-based fees and loan costs, which would otherwise be capitalized and deducted over very long periods of time.
Leveraging tax incentives to maximize cash flow
Professional services firms often benefit from collaboration between our business advisors and tax specialists. Recently a Plante Moran business advisor called in a tax consultant to consider the tax benefits of a cost segregation study for an A/E firm that was completing a $2 million renovation to a two-story office suite in downtown San Francisco. The study resulted in a first-year tax savings of $100,000 and a first five-year savings of $470,000!
Tax incentives for energy savings
To encourage investments in energy-saving devices, the federal and state governments are offering energy tax deductions and incentives to companies building energy-saving features into new construction or retrofitting existing buildings. Taxing authorities also have made tax incentives available to designers of government buildings that incorporate energy savings into their plans. These incentives can dramatically reduce your tax liabilities, but it is important that you bring our tax consultants in at the beginning of your projects to ensure you qualify for the maximum benefits.
Using a practical approach to help your organization with tax minimization is just another way we follow through on our promise to help you thrive.