How To: Identify clients with Schedule C income who should form an S corp
As the year ends, tax accounting AI tools can streamline tax planning and improve your clients' financial plans. With the right tax accounting AI tools, you can handle any challenges when making tax plans for your clients next year.
Using AI To Find Clients Who Should Form An S Corp
Another strategy for Q4 tax planning is to determine which clients would benefit from setting up an S corporation. S corporation status can reduce tax obligations by categorizing a portion of income as corporate profit rather than personal income.
This is especially important for those who file Schedule C and have a significant amount of net income (usually above $50,000).
Tax accounting AI tools comb through client data to help you pinpoint Schedule C filers who may be prime candidates for S corporation status. This automated analysis saves time, ensures no tax-savings opportunities are missed, and offers filing recommendations specific to each client.
How To Use TruePrep
Upload your client base into TruePrep using the “File Uploader” button.
Once your client base is loaded into TruePrep, copy and paste the prompt into the search bar: “Show me clients who filed Schedule C last year.”
Pro Tip: Work collaboratively with your team by saving this prompt to your “Saved Prompt” list. When they log into TruePrep, they can run the search on their own and add columns to the report when they have conversations with clients.
TruePrep will auto-generate a list of your clients who have filed Schedule C in the past. Export this list using the “Export” button.
Next, use TruePrep to draft personalized, client-specific emails. Copy and paste the prompt into the search bar: “Draft an email informing [client name] about their eligibility to form an S Corp and how it can reduce their taxes.”
Want to learn more about using tax accounting AI tools for strategic tax planning? Check out The Tax Pro’s Guide To Q4 Tax Planning Using AI or request a demo by clicking the button below.
