Playbooks & SOPs · Tax Services

Tax Estimates & Projections

Baseline tax estimation process for clients — from data sourcing through client communication and optional planning follow-up.

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Sequence of Events
  1. Data Sourcing & Scrubbing — employment, self-employment, investments, other sources
  2. Tax Estimating (Baseline) — establish taxable income variables, known payments, and compare to determine client actions
  3. Planning (Optional) — evaluate opportunities, measure economic value, communicate to client, implement findings per client response
Tax Estimating (Baseline) Steps — Tax Specialist
  1. Open the Tax Estimate Template and make a copy. Save in Google Drive under 2 - TAX → {Year} Tax Projections. Rename using convention: [CLIENTCODE] {Year} Tax Estimate
  2. Delete any jurisdiction tabs not relevant to the client
  3. Input the client code on the Federal Tab and complete all pertinent line items on the Federal tab first
  4. Complete inputs for all other relevant jurisdictions
  5. Input any confirmed estimated payments made to each pertinent jurisdiction
  6. Once complete, leave observational notes in the Tax Estimates Tab, reassign the Estimate task to the tax advisor who will review and communicate to the client, and update the due date
For entities: use the correct entity-type template. For second or third projections in a year, input prior projections in the left columns for comparison, then copy the most recent projection to the right column and update changed line items.
Preparer Quality Checklist

General Setup

  • Helpful notes left in the Google Note
  • Correct estimate template & tax year used, naming conventions followed, all entities & households estimated

Income Sources

  • All income sources accounted for
  • Variable income sources identified where flat annualization is unreasonable — marked for client feedback
  • Any changes since last review identified

Adjustments / Deductions

  • All adjustments and deductions accounted for
  • New or previously missed items identified (life changes, health premium deduction, prior preparer missed deductions)
  • Derivative anticipated SE deductions accounted for (mileage, home office, self-charged rent, credit pass-throughs)

Credits / Payments

  • Paystubs — expectation of remaining withholdings consistent with pay frequency
  • Quarterlies — PY overpayment carryforwards factored in, client estimates from business sources checked
  • PTE-E anticipated — if so, distributive share of payment credit included as separate payment
Client Communication Steps — Tax Supervisor Review & Advisor Delivery
  1. After the Tax Supervisor reviews the estimate, the Advisor creates a 3–5 minute Loom video covering:
    • Assumptions used for income and deductions in the projection
    • Suggested estimated payments to make
    • 1–3 observed potential tax planning improvements (retirement contributions, HSAs, deductible cap ex)
  2. Copy the Loom link into the Google Notes for inclusion in the client email
Decision boundary: Tax Specialist completes estimate → Tax Supervisor (Seat 4) reviews → Advisor (Seat 1) records and sends Loom. The Advisor may delegate delivery to the Tax Supervisor for routine estimates.
Estimate Feedback Insights

Underpayment Penalties

Consider whether current cash flow concerns outweigh the cost of penalties. What is needed to avoid them if that matters?

Client Cash Flow / Budget

What scenarios exist for funding the tax liability? Is an investment or cash outlay that creates a deduction necessary or already planned within the client's near-term needs (6–12 months)?

Decision-Making Before Year-End

What investments or shifts can reduce total liability? What is the timeline to execute those decisions?

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