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. Any tax action with a fraudulent intention is tax evasion. 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. 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. 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.
By seeking the help of a tax planning professional, you will be helped to find the best tax planning strategy for you in a legal and acceptable way. 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 provide accounting services and tax planning services to our clients in Foxborough. A good tax planning professional or agency provides excellent services, 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.