Planning for your income tax is very important. The IRS is incredibly strict about tax collection, and if you do not file your income tax returns on time, it could lead to a serious problem for you. Fines will be levied against your business, and you might even find yourself in jail on charges of tax evasion. Income tax planning in Hartford County, CT should be taken seriously, and if you are running a small business, it’s very important that you sit down with a tax consultant. Here are a few simple tidbits of advice for income tax planning that you should follow.
Evasion vs. Avoidance
A lot of people are confused between tax evasion and avoidance. Tax evasion is an offence, while avoidance is when you take different measures to reduce the tax payable. It’s perfectly legal, and you can figure out how you can avoid paying additional taxes on your income. You can sit down with a reliable tax consultant, such as the Padgett Business Services, to figure out how you can avoid the tax payable.
Planning for Income Tax
Income tax planning is important, and you need to start planning at least a couple of months before you are liable to pay taxes. Ideally, when you sit down with a tax consultant, they are going to need comprehensive information about your business dealings. The consultants will advise you on the steps that you can take to reduce your expenditure by a considerable margin. They will also prepare the financial statements for you so that you can file them with the authorities on time. Make sure that you publish the statements on time to avoid any fines or penalties later on.
