Proven Success: Case Studies with DW Tax Services
At DW Tax Services, we do one thing: deliver the highest quality legal tax solutions to help our clients – individuals and businesses alike – achieve financial clarity and peace of mind. Founded in 2020 by David Wright, a tax attorney with more than 15 years of experience, DW Tax Services combines significant legal expertise with a culture of transparency, education, and individualized care. Read the case studies below to learn how our experienced team of tax attorneys, CPAs, and advisors have enabled our clients to clear complex tax hurdles and successfully achieve long-term results.
Case Study 1: Business Under IRS Audit
Client: Mid-sized Jacksonville-based software firm
Problem: Client received notice of an IRS audit, with an emphasis on R&D tax credits and payroll tax reporting over a three-year period. The audit posed significant penalty exposure, potential back tax liability, and possible business interruption.
How DW Tax Services Helped:
- Completed detailed review of all pertinent tax returns, supporting documentation, and internal processes
- Educated the client’s financial team on the IRS audit process and their legal rights
- Created a communication process with the IRS audit team, which minimized client stress and distraction
- Identified and documented all applicable R&D credits supported by comprehensive documentation; and corrected minor payroll reporting deficiencies, at no additional cost to the company
Results: The audit was successfully completed without penalties being levied. All substantiated credits were accepted by the IRS; the company processes were positively reinforced for continued compliance; and the conditions that resulted in the audit were alleviated or removed. The client expressed relief and appreciation for being helped through a stressful process with confidence, allowing them to focus more intently on business expansion.
Case Study 2: Tailored Tax Strategies for the Affluent Individual
Client: Married couple with varied investment portfolio, including real property, securities, and their closely held business
Challenge: Clients were seeking to rein in tax liability, had intricate estate planning requirements, and needed to understand the implications of new tax legislation on their legacy planning.
DW Tax Services Approach:
- Reviewed the clients’ entire holdings to determine all possible tax saving strategies on each asset class
- Formulated a multi-year tax plan focused on charitable giving strategy, timing of investment and other activity, and full deduction utilization
- Collaborated closely with the clients’ estate planning attorney in order to align the tax planning with their legacy objectives, including their trusts and gifting strategies
- Provided ongoing instruction on the changes to tax law affecting the clients so they were kept informed and educated regarding their options
Outcome: The couple saw over $70,000 in annual tax savings, set up a charitable remainder trust for several of their favorite causes, and experienced peace of mind that their heirs were well organized for a seamless transition of their estate holdings. The clients continue to work with DW Tax Services for proactive planning and strategy implementation with annual tax engagement.
Case Study 3: International Tax Compliance for the Growing Business
Client: U.S.-based import/export company with new overseas business in Europe and Asia
Challenge: Complicated international tax reporting obligations, risk of double taxation, uncertainty about Foreign Account Tax Compliance Act (FATCA) and country-specific compliance issues
DW Tax Services Approach:
- Completed a top-to-bottom review of the client’s international business activity to locate all cross-border transactions and U.S. reporting requirements
- Worked with local country professionals to ensure compliance with both U.S. rules and local tax requirements
- Structured the business’ foreign activities to optimize provisions under tax treaties and minimize double taxation to lower overall tax burden
- Conducted staff training and continued support to facilitate future compliance and keep up with changing regulations
Outcome: Client fully compliant with international tax mandates and not subject to penalties or late filings; optimally structured business generates a 15% reduction in effective global tax rate to support profitable expansion without fear of audit. The company credits DW Tax Services for enabling unrestricted expansion in the global marketplace.
Case Study 4: Gift and Estate Tax Strategies for Family-Owned Business
Client: Second-generation owners of a regional manufacturing company
Challenge: The family wanted to pass ownership of the business to family members without incurring excessive estate and gift taxes while ensuring continuity in the company’s operation.
DW Tax Services Approach:
- Reviewed the company’s structure and implemented a tax-suited succession plan using, for example, family limited partnerships (FLPs) and annual exclusion gifting
- Worked with the family’s general counsel to finalize buy-sell agreements to effectively transfer ownership
- Informed and educated family members on the effects of estate and gift tax law so they could consider all elements when making decisions
- Designed and implemented a gifting program that will be phased in based on the use of current exemption amounts and valuation discounting allowed under Internal Revenue Service guidelines
Outcome: The family was able to pass majority ownership without incurring excessive estate or gift taxes, preserving their wealth for future generations while maintaining the business with family members. The client also appreciated DW Tax Services’ holistic, thoughtful approach and remains an active client who continues to work with DW Tax Services for ongoing planning.
Case Study 5: Individual Taxpayer Deal with the IRS
Client: Independent contractor facing IRS letter for alleged unreported income
Challenge: Client received an IRS notice of deficiency assessing additional tax and penalties associated with unreported contract income for two years. The client was disorganized and extremely concerned about the impact on his future financial wellbeing.
How DW Tax Services Helped:
- Conducted a thorough analysis of all sources of income, bank deposits, and prior filings to reconstruct accurate income records
- Addressed the IRS directly, presenting facts and law to dispute the assessed deficiency
- Negotiated on client’s behalf to establish an installment agreement for the small amount of taxes appropriately owed, while exonerating all proposed penalties due to reasonable cause
- Provided client with tools and education necessary to more accurately maintain records and conduct tax compliance in the future
Results: The client’s tax bill was reduced by over 80% with no penalties, allowing them to have confidence going forward in business accounting and planning. The client has continued working with DW Tax Services as necessary for ongoing effective compliance, success, and planning.
Our Promise: Client-Focused, Results-Driven Representation
“Client engagement at any of DW Tax Services is driven by an emphasis on integrity, openness and long-term healthy relationships. Individual, family or business, we listen to your unique needs and respond with clarity, concern and expertise. Our multi-disciplinary team offers decades of experience in tax law, accounting, compliance, planning and implementation – so that our strategies not only resolve your immediate concerns, but also help organize for future financial freedom.”
Your Success Story Starts with DW Tax Services
These case studies are just a few examples of the successful results we achieve for clients every day. Having a tax problem, need assistance with your tax planning, or just want to get an expert’s advice? We at DW Tax Services are here to help you. We encourage you to contact us during business hours (Monday-Friday, 9am-5pm) at our Jacksonville office toll free by calling (904) 753-4815, emailing us at [email protected], or visiting our website at https://dwtaxservices.com/. Learn how DW Tax Services can guide you through the complexities of taxes and help you meet all your tax obligations with peace of mind.
For more information about our team and approach, visit our About DW Tax Services page. If you’re ready to get started, reach out through our Contact DW Tax Services form today.