Tax planning is defined as the process of looking into various tax options for determining whether, when, and how to conduct personal transactions or business to reduce tax liability or eliminate it completely. Many small businesses ignore tax planning but this is an ongoing process and getting a good tax advice is very important. 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 Foxborough Tax Returns advisor whether you are engaged in a small, medium, or large business.
Remember that tax avoidance planning is legal but tax evasion or the reduction of taxes through concealment, deceit, or subterfuge is completely illegal. Any tax action with a fraudulent intention is tax evasion. The different areas that IRS examiners check when ruling out possible fraud includes accounting irregularities, 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. 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. Allocating income to a related taxpayer in a lower income bracket where a company makes distributions to the controlling children of the shareholder is also fraudulent.
Foxborough Tax Planning professional can help you by finding the right tax planning strategies. When it comes to tax planning a professional can help you in avoiding the most common mistakes of tax planning, reducing the taxable income amount, lowering tax rate, controlling time for tax payments, claiming tax credits, and controlling the Alternative minimum Tax effects. 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. Getting a professional tax planning professional can help you in developing tax planning strategies that are legally acceptable and recognized. We are committed and dedicated to offering the best tax planning services to any type of business in Foxborough.