Late This Year? Plan for Next.

Tax Advice from a CPA

By Victoria Scott

Desmond Taylor, a CPA, wants to help people avoid - not evade - taxes.

The deadline was yesterday.

April 3 was the day Desmond Taylor asked his clients to submit their tax information to him. He needs two weeks to finish their returns by the April 17 filing date. He files for an extension for latecomers, though he will keep trying to finish on time.

Mr. Taylor, Evanston-born and-educated, is a certified public accountant and founder of Desmond A. Taylor & Associates, 1227 Dodge Ave.

He is a guy who likes taxes, any kind of taxes - individual, corporate, partnerships and LLCs. He performs audits and writes business plans. But, he says, "Taxes are my favorite thing.”

Therefore, despite the hectic countdown to April 17, Mr. Taylor can still flash a grin when he talks about his work. Yes, he says, he works long hours and weekends this time of year - doing what he likes.

This is not his only busy time. "There are several rushes within tax season,” he says. The first rush, he says, comes "when people get their W-2 [forms], around Feb. 1.” Many are anxious to file and get their refunds. The next is March 15, filing day for corporations. In between comes the crunch for people who file to qualify their kids for financial assistance for college, Mr. Taylor says.

And then there are "the people who waited,” he says. Some wait to gather tax information - for instance, figures available only after the corporate deadline in March.

Other people might rally if they heard Mr. Taylor's suggestions for minimizing taxes. They illustrate how hiring a professional could help save money.

First, he encourages taking full advantage of tax breaks, which involves thinking ahead. Many people "slight themselves,” he says - or their businesses - because by year's end they "have not kept all the records they should.”

Since running a business is a full-time job, he finds most people do not have time both to oversee finances and to grow their business. He says, "It's disheartening for me to see them miss out on what they deserve.”

A client who has not filed a return since 2003 recently contacted Mr. Taylor. "I found $57,000 in additional deductions - not recorded - for 2003,” he says. A good CPA, "touching your records every month,” he says, will note deductions and other ways to save money.

Second, he says, a professional accountant can help many people get money back by amending already-filed returns. Although many adjustments must be made within a calendar year, he says returns can be amended for up to three years.

Third, he advises individuals who have started a business and not yet realized a profit to claim their expenses. "When you put money into a start-up and it's not yielding, you should get some relief,” he says. "If you claim income, why not expenses? If you spend money to generate income ... this may reduce your personal income. You may have money to deduct.”

Fourth, Mr. Taylor advises sole proprietors to speak to their professional financial adviser about incorporating or organizing their business as an LLC. "It affords legal protection,” he says, and is "a form of tax avoidance - not evasion,” he says.

Mr. Taylor knew early that he wanted to own his own business. He had the idea that being his own boss would give him the freedom and quality of life he wanted.

Though at Evanston Township High School he was good at math and focused on computer programming, he got tired of keeping up with rapid changes in the field. "I didn't want to have to keep learning,” he says. Then the grin: "Little did I realize that this profession requires continuing education.” Nor did he realize how "grueling” (his word) becoming a CPA would be.

He started a business on Jan. 1, 1997, preparing taxes for friends, family and some corporations while he was in college. Between college courses and the business, he says he often worked till 3 or 4 a.m. He had married in 1994, soon after his 1993 ETHS graduation, and says, "There was a drive in me.”

Two internships followed college. Interested, he says, in getting "the big picture,” he was the only person working in both the accounting and the tax departments at the first. While accounting looks at ways to attract investors to a company by deferring its expenses to show profitability, the tax department looks to mitigate risk and maximize deductions, he says. At the second internship he gained experience with audits.

In 2003 he opened his accounting firm, serving clients as far away as New York and Florida. He has also worked with both the City of Evanston and local non-profits like Over the Rainbow, "providing services for Evanston” as he always hoped to do.

Now April 17 is approaching, and Desmond Taylor is smiling

Blu Coming to The Orrington

Hotel Orrington has announced that Blu, an expansion of Blu Coral's contemporary Japanese restaurant, will open in May.

"Blu's modern tone and diverse menu will make a great atmosphere for sophisticated diners visiting or staying at the Hotel,” said Russ Abell, general manager of Hotel Orrington.

Blu will feature Japanese-style food, with menu items including lobster tempura, seven- spiced ahi and tiger shrimp sushi. The restaurant will be open every day for lunch and dinner.