Tax Strategy

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Tax strategy 
State tax
Federal tax
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In the turbulent 21st century, privately owned businesses face new & increasing strategic and operational challenges. Ellis tax services can help you meet regulatory & technology challenges whether you operate in a single state, nationwide or worldwide by maximizing the effectiveness of your tax strategy and the implementation of efficient tax processes and software tools.

Our talented people, proven tax strategies, methodologies, software and in-depth knowledge of tax law will help you build strong compliance and reporting functions in all your markets. Our high performing, efficient and effective tax strategies play a prominent role in cutting tax and regulatory costs.

Quote from a frustrated physician.

QuoteDespite hiring a local CPA, I was paying excessive amounts of taxes.  Even worse, every time I suggested a way to reduce my tax burden it was rejected off hand.  Taxes were easily my biggest expense and I had a sinking feeling that I was overpaying.  When I discussed the topic with my colleagues, they were in the same boat.

Read this to understand why.

Ellis is a tax strategy powerhouse

We develop tax strategies to cut your tax to the legal minimum. In the process, we also create cash, profits & competitive advantage out of thin air. Compared with our peers serving privately owned businesses, this is rare & unique result. We succeed 99% of the time.

Tax strategy can’t be learned in college. You can’t just pick up a book and learn it. Not everyone has a strategic viewpoint. And not everyone is that creative. There is only one way to learn tax strategy … by actually doing it over a long period of time. A few years won’t do it. A couple decades won’t do it. Today, I’m now more than four decades in. Do the math.

There are a few tax strategists at the Global 500. Surprisingly, I’ve observed that not every Global 500 has a tax strategist. As far as I know, I’m the only accomplished tax strategist working with private businesses. Apparently they’re unusual.

In 2016, the GAO reported that 99% of privately owned business pay more tax at higher rates than the Global 500.

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 only tax ‘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 is 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. Valid business purpose is the determining factor in tax law.

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.

CRAFTING STRATEGY

In it’s ultimate simplicity, if you’re doing everything else right, there are only three ways to save tax; move income to lower tax jurisdictions, convert personal, non-deductible expenditures into legitimate tax deductions, or convert taxable income into nontaxable income. Doing that legally requires tax strategy,

But tax strategists don’t grow on trees. Tax strategy isn’t taught in college. You can’t just pick up a book and learn it. The only way to learn tax strategy is practice it for decades. As far as I know, I’m the only tax strategist working with private businesses. This shows up in government statistics right here. >> In 2016, the GAO reported, 99% of privately owned business pay more tax at higher rates than the Global 500.

Here’s my point. If you loyally return the the same tax preparer year after year, but she doesn’t even talk about this, your loyalty is probably bleeding you & your business dry. 

There 28 million privately owned business & their owners, but there’s only one of us.
You need us worse than we need you. 
We’re the prize.

If your tax preparers aren’t saving you tax, what good are they?