People ask me, why do you go to Yosemite every year?
I know that many people go to Yosemite once, see all the beautiful features, appreciate it, but then move on next time to a different vacation and a different place to see something new.
But the interesting thing about Yosemite is that it is constantly changing, for sure in different seasons, but even at the same time of year. Take this year, for instance. We all know of the heavier snow this year and the relief it gave to California’s drought situation. And, yes, that would equate to more water in the waterfalls, which is in itself a beautiful sight to see. However, in doing so, did most people miss the subtle changes taking place below the waterfall? For example, the increased water flow caused several trees to fall over. How will that affect the environment going forward?
Tax is the same way, constantly changing. There are new and subtle changes happening every day, with changes in laws, regulations, pronouncements, and court cases. A tax firm must be aware of these changes. Most tax professionals see the big changes and new laws (i.e. the big waterfall), but what about the daily changes that can change how clients run their businesses?
Businesses when they are formed use different types of entities. But is this the right entity for the current business and tax climate? To stay up-to-date with such changes, business owners should periodically challenge with their tax professional. Changes in the tax laws, especially under the current environment, may require a change of an entity type, a new entity added to the organization, etc. Just like the incredible surprise sight of witnessing a newborn fawn nursing from his mother on the patio of my hotel room last week, you must keep your eyes wide open to see new things.
Encore can assist. Reach out to us and count on us.