On May 19, Kim Bey, author and respected Washington, D.C. tax professional, delivered a loaded seminar for lawyers at the D.C. Bar Association’s Practice 360º | A Day for Lawyers & Law Firms event. Ms. Bey is a regular presenter at these D.C. Bar annual events which are hosted by the bar’s Practice Management Advisory Service.
“Attorneys work very hard for their money,” Ms. Bey told the lawyers in attendance. “Yet in most cases it has been found that they omit adequate tax planning, thereby losing out on potential tax savings of thousands if not tens of thousands of dollars. This leads to stress and typically loss of revenues — situations that could have been avoided.”
Bey’s presentation was entitled, “Tax Planning for Lawyers: 7 Costly Mistakes To Avoid — Lessons From A Top Professional.”
This hard-won tax planning advice is not just applicable to lawyers but to many professionals who are caught flat-footed in April. Bey points out that it takes planning “this year” to reduce taxes for “next year.” Simple and effective advice, but also too often neglected.
“Many business professionals view accountants more as historians dealing with the recording of past income than proactive management consultants that can help them craft tax strategies that can positively affect their financial future,” says Bey. “There is an unfortunate but common belief that an accountant or tax professional can wipe away heavy and unexpected tax liabilities at tax time with a magic wand or secret knowledge of IRS regulations. Sometimes miracles do occur but they are rare and shouldn’t be counted upon.
“Planning is the only true security for tax relief.”