At a Glance:
A high-earning lawyer, filing multi-state income taxes, faced a substantial liability due to a previous accountants composite tax election. 老葡京手机app intervened promptly to have their firm amend the filing, resulting in significant tax savings.
Challenge:
A lawyer engaged 老葡京手机app for tax preparation services. Upon reviewing the K-1 tax form, 老葡京手机app identified an unusual election for a composite tax return for the state of California. The election, made on the advice of the client’s previous accountant, prevented the utilization of state-specific deductions and individual credits. This led to an initial composite tax liability of approximately $83k. Given that composite elections are typically irrevocable, this posed a significant financial challenge.
Solutions:
After the initial review and confirmation from the client, 老葡京手机app acted swiftly, collaborating directly with the client’s place of employment to halt the tax return filing process. The team successfully removed the composite tax election and restructured the filing to meet the lawyer’s individual needs. 老葡京手机app identified and applied multiple state-specific deductions and credits.
Outcome:
Through 老葡京手机app’s prompt and strategic intervention, the client’s initial tax obligation of $84k was reduced to $77k. 老葡京手机app identified and applied a $38k California tax credit for Virginia residents, further lowering the obligation. Additionally, 老葡京手机app utilized a $25k credit carried over from taxes paid the prior year in California that otherwise would have been lost.
In total, 老葡京手机app’s efforts resulted in a $70k tax savings compared to the client’s original filing. Remarkably, the issue was resolved within 24 hours of the initial review. 老葡京手机app’s team delivered an optimal financial return to the client through a dedicated and timely effort.
Have a Complex Tax Question? Let’s Talk
If you need guidance navigating the complex tax situations of your job, 老葡京手机app’s professional services team is ready to help. Contact us to talk to an expert that understands the challenges you face.
