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TAX PLANNING SYSTEMS Reviews Tax Planning Helps Bring Strategy to Tax Season By Mary Girsch-Bock W i t h ov e r 5 0 t a x provisions on the t a b l e t o b e e x t e n d e d through the end of 2016, it's def- n i t e l y n o t t o o e a r l y t o b e g i n planning scenarios on how those provisions, if passed, will afect your client's tax liability. In those 50 provisions, incentives such as the Work Opportunity Tax Credit (WOTC), and the Research and Experimentation (R & E) Credit are poised to be extended through the end of next year. How will those p rov i s i o ns af f ec t yo u r c l i ent s i f they're passed? How will they afect your clients if they don't? W hile all s i g n s a r e p o i n t i n g to Co n g r e s s extending these provisions through 2016, tax planning can help your clients be prepared, no mater what the situation. Tis is just a very small part of tax planning. And w hile it would be wonderful to have a crystal ball that allows both individuals and busi- nesses al i ke to acc urately gauge current and future tax liability, even the best planning can be interrupted by something called life; which can mean anything from the birth of a child, to a layoff, to a new job, a relocation, a divorce, or even the shelving of a bill that was expected to b e a p p ro v e d b y Co n g re s s to extend benefcial tax provisions. Luckily, there are ta x planning sofware products available to assist accountants in their desire to assist clients with both relatively simple tax decisions such as whether to convert to a Roth IR from a traditional IR, or what the tax implications would be of holding an appreciated stock versus selling that same stock. It's also important to note that these programs are designed to assist ta x professionals in planning out future scenarios for their clients, and they in no way takes the place of an experienced tax professional. W hat these programs can do is provide professionals with the tools neces- sary to forecast numerous scenarios for numerous tax years, all to fnd the most benefcial tax scenario for their client; no mater the circumstance. For this review, we looked at fve of the most popular ta x planning sofware products: • Lacerte Ta x Planner • Bloomberg BNA Ta x Planner • CCH ProSystem f x Planning • Tomson Reuters Planner CS • Drake Ta x Planner W h i l e t h e s e p ro d u c t s c an n o t magically predict the latest tax laws, or whether they will go into efect during the next tax year, two years from now, or not at all, they can help accountants help their clients by creating numerous ta x strategies designed to project ta x liabilities years into the future. Tey are also designed to take those fctional life events I mentioned earlier and factor them into the equation, giving their clients a variety of scenarios that can, may, should, and should not happen. Each of the products reviewed in this issue perform similar functions, with some providing a few years of tax projections, while others offer multiple scenarios and multiple year projections. So take a moment to look at the re v i e w s . Vi s i t v e n d o r w e b s i te s , d o w n l o a d a d e m o, o r a t t e n d a webinar to determine which of these products best suits your business and your client needs, both now and in the future. Ten start planning. ● REVIEW SECTIONS BASIC SYSTEM FUNCTIONS • General navigation/ease-of-use • Multiple concurrent users • Multi-client management/setup • System customization CORE TAX PLANNING FEATURES • Years of projections/planning/ prior year • Scenario comparisons • Special: MFS-MFJ, Estimates, Lump Sum, AMT, ACG • State planning support (resident & non-resident) REPORTING • Customizable reporting • Client-ready communication/ reporting • Report output options • Portal/DMS/email integration IMPORT/EXPORT/ INTEGRATION • Data import capabilities • Integration w/tax applications • Tax law research options • Export to common fle formats HELP/SUPPORT • Built-in support features • OS compatibility • Support website/documentation • Live Support 8 September 2015 • www.CPAPracticeAdvisor.com Mary Girsch- Bock Mary Girsch-Bock began her career as an accountant in the property management and healthcare industries. She is now a feelance writer specializing in business and technology issues and is the author of her frst book, several HR handbooks, training manuals, and other in-house publications. She can be reached at mary.girschbock@ cpapracticeadvisor.com .