Tax Planning and Compliance
Anyone may arrange his affairs so that his taxes shall be as low as possible…Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible…for nobody owes any public duty to pay more than the law demands.
- Judge Learned Hand, Gregory v. Helvering 69 F.2d 809, 810 (2d Cir. 1934), aff’d, 293 U.S. 465, 55 S. Ct. 266, 79 L. Ed. 596 (1935)
We heartily endorse the good Judge’s famous statement, and we seek to earnestly apply this sentiment when advising clients in all of their personal or business matters. Gomel, Davis & Watson, LLP has the personnel and resources to provide in-depth analysis and recommendations on international, federal and state tax issues. Our firm is composed entirely of attorneys who specialize in taxation, which provides us a unique approach to client issues.
Income Tax Planning
When done correctly, the client’s investment in income tax planning will yield benefits far in excess of the costs. Whether structuring a compensation package, starting a new enterprise, purchasing equipment or selling property, income taxes are a significant factor that must be considered. Clients routinely rely on our professionals’ experience and knowledge to advise them on structures and methods to legally minimize their income taxes.
International Tax Planning
Companies often seek the international tax planning abilities of Gomel, Davis & Watson, LLP and its affiliates. The firm has a nationally-recognized practice in planning and implementing Domestic International Sales Corporations (DISCs). These entities offer significant tax deferral for businesses which export products.
The creation and proper use of offshore entities can also provide income tax advantages, whether the entity is used to manufacture products or merely as a distribution center. Gomel, Davis & Watson, LLP helps clients decide whether an offshore entity would be practical in light of the investment that may be required, the provisions of any relevant treaty between the U.S. and the selected foreign country, and the interaction of the income tax regime of the U.S. and the selected foreign country. If an offshore entity does not make sense, the firm can prepare agreements to engage independent agents to meet our clients’ needs.
More recently, our firm has become involved with tax planning and tax return preparation for foreign nationals (resident and nonresident aliens) who are working in the United States on a temporary basis.
For certain international transactions, we may employ the expertise of attorney William K. Norman of the law firm of Ord & Norman, LLP, with offices in Los Angeles and San Francisco. Ord & Norman, LLP is of counsel to our firm.
Tax Return Compliance and Review
As a full-service tax practice, Gomel, Davis & Watson, LLP also offers tax return compliance services to clients who have more sophisticated needs or who prefer dealing with a single firm for both legal and tax compliance assistance. The firm originated with tax professionals who were trained extensively in the preparation of tax returns, and over the years we have maintained and even enhanced our capabilities in this area.
Much of our compliance work focuses on partnerships, S corporations, DISCs, estate and gift transactions, higher net worth individuals and resident and nonresident aliens. These services are frequently performed in conjunction with other legal services, such as entity formation, international tax planning and estate and trust administration.
Many of our clients wish to continue using the services of a Certified Public Accountant for tax return preparation, but call on us to review their tax returns prior to filing. This is especially common when we have assisted the client with implementing a complex legal strategy for income or estate tax savings. We work closely with our clients’ CPAs to make sure that all items are properly reported. CPAs often appreciate having our input.
Please see our articles for helpful information.