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Tax is an critical part of business operations and our personal lives. All taxpayers whether business owners or employees should be aware of the tax implications of financial decisions they make.
Conversely, businesses that manage their business from a tax basis operate the way the IRS looks at them, not how they should manage their business decisions. No one should spend $300,000 to save $100,000 in taxes. Tax is only one factor driving business and personal tax decisions.
The relationship between Business Sense and Tax is the reason why Stephen A. Avery, CPA offers tax services to clients.
Steve has a copy of the 1918 Income Tax Code in his office. It is less than 40 pages. He also displays a copy of the Tax Code from 1924. It is less than 200 pages. Today's federal tax code now exceeds 6,000 pages. The addition of
various state tax codes easily doubles this number.
Each year we interview new tax clients with mistakes made on previous returns. The increased complexity of tax and tax planning requires extensive knowledge and dedication.
Certified Public Accountants are required by their state license to obtain at least 40 hours of continuing professional education each year. This compares to a medical doctor's 24 and an attorney's 16. A CPA practicing tax dedicates part of this education to current tax issues. This provides an extensive data base to assist in tax planning and tax preparation.
Stephen A. Avery, CPA prepares both individual and business tax returns on both the federal and state level. The firm offers free tax consultation to existing personal tax clients throughout the year. "I often go to meetings with other tax professionals and hear them comment about the messes clients bring into the tax preparer's office in March of April. I often wondered to myself about where the tax preparer was when the client got into trouble in October or November. I decided that making myself available year around would be part of my tax practice" Steve Avery
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The 1918 Tax Code -- All 32 pages at 5 1/2" by 8 1/2'
Spanish Colonial Contribution to New Mexico Tax Law
Many
Clients seeking to plan and control their tax burden ask me about various
options for filing as a married couple. I then explain one of the unique
aspects of New Mexico Tax Law.
New
Mexico is one of a handful of states where the marriage relationship is
defined by Spanish Common Law as
opposed to English Common Law.
Common Law is a cultural tradition that, while not passed formally into law,
has the force of law and forms the traditional basis for many formal laws.
English Common Law holds that property and income belongs to the person earning the money to pay for it. A wife’s income belongs first to her and then to the marriage. The same is true with the husband’s income.
Under
Spanish common law, the act of marriage forms a community made up of the husband and wife. Each equally share in the
marriage’s income. The wife’s income is divided between herself and her
husband. The same is true for the husband. If the husband and wife decide to
file separate tax returns, they must split their income equally between the
two of them.
Of course, 150 years of English Common Law influence has modified and adapted the basic community property concept creating many exceptions that arise out of different individual situations.
Personally,
I find the concept of community
marriage beautifully reflects many aspects of New Mexico’s Hispanic culture.
It is nice that such an advanced concept has its roots in New Mexico’s
colonial past.