TAX SEASON MAY BE OVER BUT PLANNING OPPORTUNITIES ABOUND

While tax practitioners may still be celebrating the end of busy season, a recent survey by Merrill Lynch points to more opportunities for tax planning to educate clients on changes brought about by the Taxpayer Relief Act of 1997.

The survey, which polled 1,000 people, found that nearly 39% believe that the new tax bill will have no effect on their lives. Only 11% of respondents said they significantly alter how they save as a result of the new laws.

With the many changes impacting IRAs, college planning, and other areas, and Federal data reporting that the act will potentially affect every American, CPAs clearly have an opportunity to educate clients on tax planning and how to take advantage of the new law. For example, only two percent realized that the bill made changes in the traditional IRA and only three percent knew about the creation of the Roth IRA.*