Great Tips When It Comes to Tax Planning and Tax Returns
Tax planning pertains to the process of studying different ways involving tax management to determine how to conduct personal transactions or business to reduce or eradicate tax liability. As a business owner, tax planning is very important and getting a good advice is essential because tax planning is an ongoing process. There are actually tax provisions, deductions, and credits existing and governed by the law which is legally acceptable, so you can take advantage of these by discussing these with your CPA or tax advisor whether you are engaged in a small, medium, or large business.
Remember that tax avoidance planning is legally accepted, however tax evasion or reducing tax through deceit, concealment, or subterfuge is not allowed or permitted by the law and this is a major offense. What actually sets tax evasion from tax avoidance is that the IRS find the action or intention fraudulent. The different areas that IRS examiners check when ruling out possible fraud includes accounting irregularities, and improper allocation of income. An example of fraudulent action is failure to report a part of daily business receipts or shareholder’s dividends. Overstatement of travel expenses and large deduction of taxpayer’s claim for charity donations without verification or foolproof documents are also fraudulent that constitute tax evasion. Another type of fraudulent activity includes failure to keep adequate financial records or discrepancies on tax returns. Improper allocation of income include controlling tax distributions for lower tax bracket such as shareholder’s children.
A tax planning professional can help you by finding the right tax planning strategies. A tax planning professional can help you in reducing the amount of your taxable income, lowering your tax rate, controlling the time when you can pay your taxes, controlling the Alternative minimum Tax effects, claiming available tax credits, and avoiding the most tax planning mistakes. Proper planning is important when estimating your business and personal income for the next few years. We provide accounting services and tax planning services to our clients in Foxborough. It is essential to hire a tax planning professional in Foxborough with a good reputation, foolproof credentials, and with good communication skills so business owners can fully benefit from the service. We are committed and dedicated to offering the best tax planning services to any type of business in Foxborough.
