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. 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.
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. Any tax action with a fraudulent intention is tax evasion. When it comes to IRS assessments, IRS examiners will check any possible fraud in four areas including failing to report substantial amounts of income, accounting irregularities, claims for improper or fictitious deductions on a return, and improper allocation of income. Failure to report a shareholder's dividends or a store owner's portion of daily business receipts is a fraudulent action that constitutes tax evasion. A tax evasion case may also be charged if there are overly priced travel expenses as well as large deduction for charity donations without proper documents presented because these are fraudulent in nature. 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 at http://foxboroconsulting.com/tax-services/tax-planning/ 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. A good tax planning professional or agency provides excellent services at http://foxboroconsulting.com/tax-services/tax-planning/, with a good reputation, foolproof credentials, good communication skills, and reasonably priced services. It is our dedication, commitment, and passion to provide excellent tax planning services to our clients in Foxborough and its surrounding areas with full confidence and expertise.