Plan the year before the IRS totals it
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- Blaga Veleva, EA
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- Tax planning
Tax planning means making legal choices during the year, such as timing income, choosing an entity, funding retirement accounts and planning gifts, so you owe less when the return is filed. Blaga Veleva, EA, plans with Houston business owners and families year round, not just in April, and checks each idea against current law before you act on it.
How can a small business lower its taxes legally?
By deciding in advance, not after December 31. The legal levers are well known; the skill is fitting them to your numbers:
- Timing. Shifting income or expenses from one year to another so they are taxed at a lower rate.
- Structure. Choosing how the business is taxed, and when an LLC or S corporation election helps (see Texas LLC).
- Deferral. Retirement plan contributions that move tax to later years.
- Family and entities. Splitting income among family members or entities where the law allows it.
None of this works on messy books, which is why planning usually starts with bookkeeping that is current.
What does planning look like for a household?
It looks like a few decisions at the right time. Should you take a retirement distribution this year or next? Will a bonus push you into a higher bracket? Is it time to change your withholding? Are gifts to children better made now or through an estate plan? Blaga runs the numbers both ways so the choice is yours with the cost in front of you. Estate and gift questions connect to estate and trust returns.
Why plan with an Enrolled Agent?
Because planning has to survive a review. An Enrolled Agent has "unlimited practice rights" before the IRS (IRS enrolled agent information), and keeping that credential requires 72 hours of continuing education every three years. Blaga also brings an operator's view: she has been a controller over a 150-person team and has owned a manufacturing business, so advice is grounded in how a company actually runs.
The firm's mission says it plainly: lower your taxes, increase your profits, help you control your cash flow.
What is the difference between planning and preparation?
Preparation reports what already happened; planning changes what will happen. A return can only record the year you had. A planning session, held in spring or fall, can still change the year you are in. You can pair the two: tax preparation in the spring, then a check-in before year end.
Can planning help with estimated taxes and cash flow?
Yes, and that is often where owners feel it first. If you pay quarterly estimates, the IRS generally expects them when you will owe $1,000 or more at filing (IRS estimated taxes). Setting the right amount each quarter keeps cash in the business instead of overpaying, and avoids an underpayment penalty from paying too little. Self-employed owners get the most from this.
What does a planning session actually cover?
Your current year, in numbers. Blaga starts from last year's return and this year's results so far, projects where the year will land, and then tests changes against that projection: an equipment purchase in December or January, a retirement contribution, a change in how an owner is paid, a gift to family, or the sale of an investment. You leave with a short list of actions and dates, and with the estimated tax effect of each, so you can decide what is worth doing. A second check-in in the fall confirms the plan still fits the year you are actually having.
A client, in their own words
“They provided clear guidance on when to do my quarterly tax estimates and were flexible with when we scheduled the consultation call! Very personable and informative.”
Questions people ask
Q1When is the right time to do tax planning?
Blaga's advice is to plan at least six months before the end of the tax year, while there is still time to act on it. After that, plan before any big decision: a new business, a sale, a marriage, a death, a move to Texas.
Q2Is tax planning only for high earners?
No. A sole proprietor choosing whether to form an LLC, or a retiree deciding when to draw from an IRA, can save real money with an hour of planning. The ideas differ by situation, not by income level.
Q3Will a tax plan get me audited?
Legal planning that is documented and reported correctly is not a red flag by itself. The aim is to use what the law allows and keep the records to show it. If the IRS ever asks, an Enrolled Agent can answer for you.
Q4Do you offer ongoing business advisory?
Yes. Ongoing tax consulting and business advisory cover year-round questions about taxes, profit and cash flow, not just one meeting a year.
Q5What should I bring to a planning meeting?
Last year's return, year-to-date profit and loss for any business, recent pay stubs, and a list of anything big coming up, such as a sale, a move, a new child, retirement, or a change in the business.