Tax Consulting

Stage 1: Initial Consultation and Information Gathering

Accountant/Auditor Actions:

• Conducting an initial meeting or online consultation with the client.
• Determining tax status (individual/legal entity, resident/non-resident).
• Analysis of income structure, expenses, assets, foreign accounts, business operations, etc.
• Requesting and collecting necessary documents: previous tax returns, financial statements, bank statements, income and expense documentation.

Stage 2: Tax Risk Analysis and Strategy Development

Accountant/Auditor Actions:

• Assessment of current tax burden.
• Identification of risks (e.g., double taxation, errors in tax returns, IRS audit risk).
• Selection of the most efficient tax structure (LLC, S-corp, C-corp, partnership).
• Development of tax strategy: cost optimization, investment planning, tax deferral, utilization of tax credits.
• Providing recommendations for accounting practices and documentation support.

Stage 3: Implementation of Solutions and Ongoing Support

Accountant/Auditor Actions:

1. Setting up an accounting system or adjusting an existing one.
2. Preparing and submitting changes to the IRS (e.g., filing a form for business structure modification).
3. Maintaining tax records during the reporting period.
4. Providing recommendations for monthly/quarterly reporting.
5. Representing the client's interests in communications with tax authorities.

Timeframe:

• Up to 1 month — for initial implementation.
• Ongoing support — by agreement (monthly or annual contract).

Estimated Cost:

1. $200–$600/month — for individuals or small businesses.
2. $1,000–$5,000/month — for medium-sized businesses or complex structures.

Stage 4: Tax Reporting Submission

Accountant/Auditor Actions:

1. Preparation and submission of federal and (if required) state tax returns.
2. Utilization of permitted deductions, credits, and tax incentives.
3. Verification of compliance with IRS requirements.
4. Adjustment of tax payments or receipt of a tax refund.

Estimated Cost:

• $200–$500 — for an individual.
• $500–$3,000+ — for businesses (depends on entity type, foreign assets, number of forms).

Stage 5. Tax Planning for the Next Fiscal Year

Accountant/Auditor Actions:

1. Analysis of previous period results
2. Tax burden forecasting considering legislative changes
3. Development of action plan for future tax reduction
4. Optimization of tax credits, investments, and retirement plans (e.g., 401(k), SEP IRA)