Tax Return Preparation and Planning
Tax Return Preparation
There are many different types of tax, various government taxing authorities, and an ever-changing tax code that becomes more complex each year. Tax return preparation is often just the first step in being compliant with all of the assorted laws. With that in mind, it is important to plan ahead and know your filing obligations so it is done correctly the first time, and you can avert an unfavorable audit or avoid owing money to the government without having the means to pay. Often, more than one state is involved. In this situation it is advisable to hire a professional who has experience navigating through the diverse state rules, and who can reduce overall tax liability according to the laws of each state.
In recent years, the federal government has placed a heavier emphasis on international noncompliance. It is sometimes shocking to hear it, but the United States has a worldwide taxation system, meaning that income earned anywhere in the world is taxable to the United States for citizens and other particular individuals with filing obligations. There are also rules that allow for tax credits and exclusions from income, so it is important to correctly file tax returns with international considerations. Another aspect of this is the relatively new foreign account reporting rules under FATCA,in addition to the more established FBAR rules. Although painfully redundant, each set of rules is slightly different and involves separate government agencies. Unfortunately, both sets of rules carry massive penalties for noncompliance; it is imperative, then, to hire competent counsel who can promise proper compliance with the reporting requirements under both sets of laws.
Although proper reporting is critical to prevent the assessment of unnecessary penalties, interest, and stress, it is just as important to plan ahead in order to minimize tax liability. Common strategies include: forming a business entity for sole proprietors, changing the business structure for an existing business entity, adjusting the timing of a significant event such as a large purchase, contributing to a retirement plan, or taking advantage of a specific tax credit. The exact strategy utilized will vary based on each taxpayer’s unique circumstances, so you are encouraged to seek the counsel of an experienced tax professional before the end of each tax year.
Contact an Experienced Tax Attorney in Roseville, California
If you are worried you may not be compliant with tax laws, or if you feel you may be subject to potential audit, a tax attorney from NewPoint Law Group can offer relief. To schedule a free consultation, call 1-800-358-0305 or contact us online today.