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. Tax planning is an ongoing process so seeking a professional advice is crucial to ensure it is done properly, but many small business owners are ignoring this fact. Whether you have a small, medium, or large business, it is your greatest benefit to review your monthly income and expenses, and regularly meet with your tax advisor or CPA every quarter to make an analysis on how you can take full advantage of the credits, provisions, and deductions that are legally available to you.
Keep in mind that although there are ways to reduce or eliminate your taxes, performing tax actions with deceit, concealment, or subterfuge is illegal, but tax avoidance planning is completely legal. What actually sets tax evasion from tax avoidance is that the IRS find the action or intention fraudulent. The IRS examiner checks four different areas for any possible fraud such as accounting irregularities, failing to report substantial amounts of income, claims for improper or fictitious deductions on a return, and improper allocation of income. Failing to report a portion of your daily business receipts or shareholder’s dividends is fraudulent and may lead to a tax evasion case. 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. It is important to keep sufficient financial records and financial statements, and don’t hide or conceal anything to IRS, otherwise, it may be considered a fraudulent tax avoidance warranting tax evasion. An example of improper income allocation is distributing earnings to a lower tax bracket taxpayer such as the 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. If you are looking for a trusted, reputable, and reliable tax planning professional in Foxborough, we can help you by visiting our website or homepage now. We are a tax planning and tax returns professional who can help you with your business. 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. Our tax planning professionals are passionate, committed, and dedicated to providing the best tax planning services to our clients for Foxborough.