Tax Planning - Building a Better Citizen
Every earning individual or a business enterprise needs to give back to the government a share of the earnings. Termed as Taxes, this is deducted from the salary, or any other source of income from the individual. For the business enterprises, irrespective of them being a small and medium one or a large corporate, corporate taxes refers to income, capital, net worth, or other taxes imposed on them. Whatever may the case be, paying the taxes is a necessity and tax evasion a crime. However, to be on the safer side, enterprises and individuals need to be efficient in tax planning.
Tax planning is a process followed by individuals, businesses, and organizations evaluate their financial profile so as to reduce the tax amount that needs to be paid on income or profit generated. Effective tax planning involves analyzing investment devices, expenditures, and other aspects which will showcase the individual's or enterprise's tax liability impact. The government on the other hand makes exemptions so as to reduce cases of tax evasion and also provide taxpayers relief in paybacks. Tax incentives provided by the government can be availed by every citizen. However, to help enterprises and individuals reduce the tax liabilities requires prudent tax planning.
However, for taxpayers who fail to file their tax returns, the income tax departments have developed various amnesty and voluntary disclosure programs to allow the tax defaulters to pay their taxes in full. Further, with enterprises moving towards a global presence, and with a mobile workforce, tax evasion comes in as an easy option. Under the IRS regulations, the Offshore Voluntary Disclosure program is offered to individuals and corporate taxpayers with offshore accounts or assets.
Nonetheless, the Internal Revenue Service and the US Government have worked out regulations making it necessary for these multinationals bring forth to the table all their income, immovable and movable properties across various locations under the Overseas Voluntary disclosure program. This will also bring to light any undisclosed foreign bank accounts either of any individual or the enterprise and will ensure that these entities are compliant with the tax regulations of the US Government.
Effective tax planning, a crucial aspect in the financial success of the business, depends on the ability to use the legal technicalities to one's advantage. Availing the tax planning services of qualified tax consultants from leading tax planning services can help businesses grow by proper calculation of taxes and avoid any penalties. Estimation of taxes beforehand will help enterprises to manage finances in the best possible and also look for solutions that will facilitate profitable business expansions across geographical boundaries.
Read More About: IRS Amnesty, FBAR