As the end of the year draws near, many companies are busy putting the closing touches on any last-minute transactions, acquisitions, payout, or benefits for the corporation’s year-end. Pretty soon, it will be time to file taxes for 2021, and many business owners want to make sure they have capitalized on any potential tax savings.
What some companies do not realize is that they may face more severe financial tax burdens due to not taking advantage of available tax breaks, but without due care, they may be dancing along a very fine line.
There is always the question of legality when it comes to taxes. What is tax fraud versus what is a tax saving? In a very basic sense, tax fraud is false information provided on your corporate taxes. Tax savings, generally speaking, are ways that business owners can reduce their financial tax burdens though certain tax benefits.
The difference is in knowing what types of tax savings fall into which category. What does deferring income mean for your company? Are you qualified to do so based on your specific financial situation? The same questions can be, and should be, asked for what company assets qualify as a taxable benefit.
Tax laws are generally confusing, even to seasoned corporate professionals and government officials. Because of this complexity, it’s crucial to seek the assistance of an experienced corporate lawyer. They will be able to leverage their experience to help business owners identify the best legal solutions to avoid unnecessary tax burdens. Call us today if you want to make the most of your tax benefits that may be available to you.