Friday, February 7, 2014
Wednesday, January 29, 2014
Tuesday, January 14, 2014
The difference between tax avoidance and tax evasion:
Tax avoidance is the legitimate minimizing of taxes, using methods approved by the IRS. Businesses and individuals avoid taxes by taking all legitimate deductions and by sheltering income from taxes by setting up employee retirement plans and other means, all legal and under the Internal Revenue Code or state tax codes.
Tax evasion, on the other hand, is the illegal practice of not paying taxes, by not reporting income, reporting expenses not legally allowed, or by not paying taxes owed.
Tax evasion is most commonly thought of in relation to income taxes, but tax evasion can be practiced by businesses and individuals on state sales taxes and on employment taxes. In fact, tax evasion can be practiced on all the taxes a business or individual owes.
Tax Avoidance is legal, Tax Evasion is illegal! Make sure your tax preparer knows the difference.
With more than 15 years in the industry, we can help you avoid taxes. Call us to schedule an appointment 713.489.5296!