The phrase “tax planning” is used broadly. Real planning should involve facts, timing, alternatives, calculations, implementation, and follow-up.
There should be a specific decision
Good planning addresses an actual choice: compensation, retirement contributions, entity structure, a sale, a conversion, estimated payments, charitable giving, or another decision with tax consequences.
There should be numbers
Planning should model alternatives and explain assumptions rather than rely on slogans such as “this saves taxes.”
There should be trade-offs
A strategy may improve one tax while worsening another, create administrative cost, change cash flow, or affect future years.
There should be implementation
Advice is not complete until the taxpayer knows what must be done, by whom, and by what deadline.
There should be follow-up
Planning should be revisited when facts change or after implementation to confirm the intended result.