Tax planning for challenging times

Businesses and taxpayers nationwide are continuing to adapt to the challenges posed by the COVID-19 pandemic and its impact on the economy. Times are tough — but that doesn’t mean there aren’t opportunities.

Take tax planning, for example. A variety of tax-planning opportunities exists for companies amid this challenging economy. This guide is intended to explore what might be right for you. Note that while we’re focusing on tax here, other business planning opportunities are addressed in our COVID-19 resource center.

What’s inside the tax planning guide

• Short-term opportunities: In the immediate short term, planning focuses on maximizing business cash flow. That can be accomplished through a combination of refunds opportunities resulting from business losses, utilization of tax credits, and deferral of tax payments.
• Medium-term opportunities: Medium-term tax planning takes a broader view of tax characteristics, still largely focusing on cash flow, and addresses income and deductions to maximize loss carryback opportunities or minimize other tax liabilities. Such planning encompasses the current-year tax planning but could also include amendment opportunities for prior tax years.
• Long-term opportunities: Longer-term tax planning takes a much broader focus to ensure that not only are taxes minimized, but also that those strategies fit all other stakeholder needs including business growth, transition, and estate plans. This includes opportunities to restructure business operations, business entities, and future transactions. However, the specific emphasis on each phase will depend on the characteristics of each taxpayer.

For more tax planning resources, check out our webinar series:

• Tax strategies for adapting to challenging times
• Maximizing cash flow through COVID-19 tax planning
• Dealing with business debt during challenging times
• Optimizing tax accounting methods in challenging times
• Rethinking business and transaction structures during COVID-19