Tax, Accounting and Business Consulting

Tax Planning Tax planning is the analysis of current financial situation of a business, individual or any other entity to ensure that all the financial and non-financial elements work in harmony to minimize the tax burden in the current year and future years to maximize the income of the shareholders, owners or the individuals. Tax Preparation Vs Tax Planning Most of the time people are confused tax preparation with tax planning. Tax preparation is done to report income and pay tax and can be done by anyone. Even the software like Turbo Tax, HR-block or Liberty Tax can do it for you.  Tax planning in the other hand is done round the clock and needs an expert who has intensive knowledge of tax laws, recent tax law changes and has been in profession for many years and has been dealing with  complex tax scenario and situation and also have successfully worked on such situations. Planning: overview Tax planning is not only about reducing tax for current year, but it is a holistic ...

           Can you avoid taxes – Yes, is it legal . Yes you can avoid tax it is legal but however evasion of tax is illegal. The US income tax system is based on voluntary compliance. Under US tax laws it is taxpayer’s responsibility to report all the income. Let’s understand the concept of tax avoidance and tax evasion under this concept. Tax avoidance is planning your taxes in such a way that you pay minimum or do not pay at all by taking an action to lessen your tax liability and maximizing after tax (take home) income. Tax evasion in the other hand is failure to pay or a deliberate underpayment of taxes by hiding your income or inflating you expenses or intentionally presenting incorrect information or not reporting the income or other information that are required to report under the law. Tax evasion is criminal offence. How do you avoid taxes? US Tax laws has provided various tax provision to lower one’s taxes under the law either you are...