Tax Strategy

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Tax Strategy. Creatively combining tax law with your personal & business circumstances to save taxes.

In the last eight years alone, we saved millions of dollars for thousands of owners. Every dollar saved drops straight to the bottom line as cash, profits & competitive advantage created out of thin air.

You can’t scale if you’re wasting dollars on tax.

21st Century Tax Crisis.

99% of businesses & their owners pay more tax than the law requires.(Source: GAO, IRS, Huffington Post.) 28 million privately owned businesses fall into this category..This means legal tax cutting devices are constantly & continuously overlooked by 99% of businesses & their tax professionals. That’s a major failure of the tax profession. You’ll never be great as long as you pay more tax than the law requires.

Every problem can be solved. Unsolved problems last forever.

State Tax Strategy

Very fertile field for tax savings.

Global Tax Strategy

Very fertile field in the proper circumstances.

Ellis is a global thought leader in tax for privately owned businesses. Some thoughts.

THE TAX CODE WAS BRILLIANT BY DESIGN: The 13th amendment created two separate tax systems in the US. One for businesses & their owners, and one for everyone else. There was some concern people wouldn’t vote for the amendment so Congress advertised through the country they would tax only ‘profits’. This became part of the amendment’s legislative history which made it a fundamental part of the amendment itself. The Supreme Court affirmed this in Glenshaw Glass in 1954, and Congress codified it in section 172 the same year. Section 172 explains it by saying anything is deductible as long as it is ordinary, necessary & reasonable in pursuit of profits. Nothing can be excluded if you meet those requirements. (And who determines that? The taxpayer.) Later the courts added requirements for a valid business purpose and economic substance. The IRS used these to attack giant tax frauds, such as BOSS & SON OF BOSS. Even when Congress intends to prohibit a deduction, such as health club dues, it’s still deductible by re-characterizing it. That proves valid business purpose is the determining factor.

THE WAY IT WORKS WAS BRILLIANT BY MISTAKE: The tax code is reportedly 77,000 pages long. Add in Regs, Rev Procs and litigated results, and now it’s 240,000 pages. Add in 50 states and 172 countries and it becomes 25 million to 53 million pages. Somewhere in here, the average tax preparer is left behind. Our genius intellect, 4+ decades experience and deep domain expertise sets us apart from the average tax preparers who were left behind after a few thousand pages. Inevitably in anything as complex and enormous as the tax codes, there are thousands, multitudes of discrepancies, differences, anomalies, inconsistencies that are breeding grounds for legal tax savings.