Case Study
Change in Tax Classification for Tax Savings
situation
Client sought additional tax savings during windfall year, but was limited in options because of their previous entity structure.
RESPONSE
By looking at the client’s previous tax filings, we identified errors made by their previous accountant.
We used this as an opportunity for the client to dissolve their partnership and become an S-corporation. We then went back and made a late S-corporation election, which changed the way the client’s profits would be taxed for that year.
Outcome
Client saved in excess of $100,000 on their taxes due to the change in entity structure.
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