CASE STUDY ONE – PERSONAL INCOME TAX
The client is a high income individual who owns 20% of a corporation. He receives both a K-1 and a salary from his corporation. He has further investments that also provide him with $25,000 in income per month. He came to us for tax planning for 2016, and wanted to see what we might be able to do to lower his taxes. He had used his previous service provider, a large corporate firm, for about 7-8 years.
We were presented with the task to see if we could reduce his 2016 taxes. We considered all options and factors. During a review of his paperwork we found areas where we were able to help him save money; we also made the discovery that many items had not been properly recorded. The client could not believe that he spent almost a decade with his taxes not being handled correctly.
A review going back to 2008 was performed. After carefully reviewing his tax returns and finding missed deductions and items that were recorded incorrectly, we proposed a tax adjustment for his 2014 taxes resulting in a significant refund. Furthermore, for 2016 we provided recommendations to re-structure his entity and proposed various retirement plans that could help lower his taxes.
The client will received a $112,000 additional refund as a result of our amendments for his 2014 taxes. Once he turned his taxes over to our small firm and received our careful services and expertise, he was able to experience the results of our attention to detail. Bharmal & Associates is now taking over his personal taxes. Needless to say, he hopes to work with our firm for years to come.
CASE STUDY TWO – WHEN YOU REALLY CAN’T DO IT ALONE
This client owns a tech startup company that does online subscription services mainly encompassing the health and fitness industry. He came to us as a referral to advise him in his accounting and prepare the taxes for the Company. He was previously using Quickbooks and he desired to keep costs to a minimum. When we reviewed his books, we found that he was missing deductions and many items had not been properly included.
We noticed some very concerning red flags. His books were never reconciled, the bank balances didn’t match up and money through merchant services and credit cards were not included in his statements. In addition, payroll was also not being properly deducted. Furthermore, for 2013 we found that he didn’t recognize thousands of dollars in deductions.
We proposed an amendment for his 2013 return and he was refunded an extra $3,000. In 2014, he realized that he couldn’t keep his records properly on his own, especially has his business was growing. He signed up for our monthly accounting package and we also do his bookkeeping for him. His payroll and merchant services are all properly classified and we advise him on his business as well.
He now never has to worry about the possibility of his numbers not being accurate. He now knows the cost of everything and has access to his monthly statements so he knows where all of his money is going and coming. He trusts us with all of his finances and from this experience has gained peace of mind knowing that everything is not only compliant but accurate.
OUR COMMITMENT, THE BEST SERVICE POSSIBLE. PERIOD.
“We’ve worked over 25 years to bring a team and level of service that is unparalleled in the market place. Our client commitment is our top priority. We continue to win clients because we work as a team and deliver the best results while staying on the forefront of the latest trends and practices. We’re not just CPAs but advisors. Let us show you what we can do.”
ISMAIL BHARMAL • CEO AND PRESIDENT
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