Fiscal Deity: Tax Consultant

Strategic planning throughout the year results in a minimal tax balance. The objective of planning your tax payables is not to prevent paying taxes, it is to pay no more than your fair share of taxes, and keep your money where it earns you the most.

If you aren't aware of it yet, Uncle Sam pays no interest. If he deducts your tax payment monthly or quarterly, and takes more than his fair share, he doesn't give you anything back for the privilege of using your hard earned money. By the same token, if you don't pay in enough, he charges you a penalty and interest.

As a W-2 wage earner, if you are over paying your tax debt, you may be considering it a 'forced savings plan', but you gain nothing, using that particular plan. By putting the same amount in savings every year, earning interest on the balance, and continuing to regularly invest in your savings fund, you may be able to utilize the retirement savings plan reducing your tax debt significantly. With the advice of a competent tax consultant, your savings can become an investment with a tax reduction at the end of the year.

As a business owner paying tax quarterly, over paying your taxes can cost you considerably more. Your tax debt may actually be borrowed money, on a line of credit from the bank where you pay interest for the use of the money. If tax planning were part of your business expenses, you get to deduct the amount paid to the tax consultant from your business, you don't have to pay interest on more than you need to pay in (if using a line of credit to pay taxes), and any saved money can be placed in a retirement fund or savings plan to draw interest for you. Once again, a tax consultant can save you money.

These are just a couple of ways you can save money by hiring a tax consultant. So, who is your Tax Deity? Your tax consultant or Uncle Sam?

Copyright © 2005 ? Jan Verhoeff

Tax planning is an important part of setting up your business, working your job, or living in a world where taxes are a fact of life. Consider saving money on your taxes this year, by planning well, and paying yourself first. Visit eBiz Brand Performance for more information.

In The News:

Does Amazon Really Pay No Taxes? Here’s the Complicated Answer  The Wall Street JournalDemocratic presidential candidates have seized on reports that Amazon.com Inc. paid no 2018 federal taxes as they press for changes in the tax system.
Budget 2019: Govt may ask 'loss-making' companies to pay tax  India TodayThe finance ministry is likely to propose a minimum amount of tax on loss-making companies in the upcoming budget or just after that. However, genuine ...
House Democrat says current Congress may not see Trump taxes  ReutersA senior Democrat on a congressional panel seeking President Donald Trump's tax returns warned on Saturday that the current Congress may not see the ...
Is receiving money from friend through e-wallet taxable?  Economic TimesThrough e-wallets and UPI, it has become easy to send and receive money through your phone. Often, debts to friends may be settled in this manner.
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Most millionaires support a tax on wealth above $50 million, CNBC survey says  CNBCA majority of millionaires support Sen. Elizabeth Warren's proposed tax on large wealth, according to the CNBC Millionaire survey.
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Oil's Next Great Deflationary Force: Taxes  BloombergCountries are starting to compete to attract investment.
New York Can Tell Congress Lots About Trump’s Taxes  The New York TimesHis state returns will give the House a glimpse of past I.R.S. audits, before and after he entered the Oval Office.
Only one month left for filing taxes online  The Brussels TimesThe countdown has begun: taxpayers have only one month before the deadline for online filing on Tax-on-web expires on 11 July, the Finance Department ...
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G20 nations set to endorse new tax framework to ensure fair play  Economic TimesNEW DELHI: India and other G20 members are set to endorse a new tax framework that could force multinational companies to abandon aggressive tax ...
High-Tax States Face an IRS Smackdown  The Motley FoolTax reform is a year and a half old now, but there's still plenty of argument about some of its more controversial provisions. One of the hardest-fought changes to ...
Budget 2019: Godrej, Nestle united against corporate tax; say reduction needed for big cos  The Financial ExpressUnion Budget 2019 India: As FMCG industry has borne the brunt of the ongoing rural distress, Suresh Narayanan said that he hopes the budget addresses ...
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Capital Gain on Shares? Wait Few More Days Before Filing Income Tax Returns  MoneylifeWith the Income Tax (I-T) department changing the method for calculation of capital gains tax, taxpayer are being advised not to file returns in a hurry and wait for ...
Budget 2019: Tax officials likely to seek up to Rs 1.5 lakh crore reduction in collection target  India TodayOfficials from the tax department are likely to ask the finance ministry for a reduction in the tax collection target up to 6 per cent, translating to Rs 1.5 lakh crore, ...
GOP leader concedes tax cuts may not pay for themselves as 2019 deficit grows  The Washington PostRep. Kevin Brady (R-Tex.), a lead architect of the GOP tax bill, suggested Tuesday the tax cuts may not fully pay for themselves, contradicting a promise ...
Boris Johnson’s proposed income tax cut for those earning over £50,000 is a stinker for the average Brit  The SunBORIS Johnson's first big policy announcement is a stinker. We're all for tax cuts . . . Tories should be tax cutters, above all. But what possessed Boris to think his ...
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Bring down corporate tax, simplify taxation, revive infra investment: Industry to FM  Economic TimesCII President suggested that a simplified taxation regime is pivotal for improving the revenue flows and help government stick to fiscal prudence without ...
Budget 2019: Will the new direct tax law find a mention in the FM’s speech?  The Financial ExpressBudget 2019-20: The original Direct Taxes Code (DTC) had proposed personal tax rates and income slabs which would lead to higher disposable income for ...
Tanzania row over wig and hair extension tax  BBC NewsA row has broken out in Tanzania over the government's decision to impose a tax on wigs and hair extensions. Many male and some female MPs applauded ...
Tax break to land reforms: 10 things wished from Sitharamans first budget  Business StandardEverybody wants everything. The challenge for finance minister Nirmala Sitharaman's first budget is to give everybody something. Here is a look at some ...
MCCI moots lower tax rates to boost FDI  The HinduThe Centre must quickly come out with appropriate tax incentives to attract *fresh* foreign direct investment (FDI) to cash in on the opportunities arising out of the ...
What to Expect When the IRS Alters Its Bitcoin Tax Policy  CoinDeskThe Takeaway. Coming guidance from the IRS will address longstanding questions about the tax treatment of cryptocurrency. The tax collector has identified ...
Boris Johnson promises tax cut for 3m higher earners  The GuardianFormer foreign secretary says he will raise the 40p threshold from £50000 to £80000 if he becomes prime minister.
Passing the tax smell test  The Indian ExpressSubramanian's growth claims would imply a strange boost in tax to GDP ratio.
Rich New Yorkers are fleeing to Miami to escape high taxes. I spent 3 days there, and it was immediately clear  Business Insider IndiaKatie Warren/Business InsiderI recently spent three days in Miami touring exclusive private islands and oceanfront mansions.Wealthy New Yorkers are fleeing.
How to get tax e-refund  Economic TimesIt is important for the assessee to first link the PAN to the bank account to be able to prevalidate the bank account.
Rep. Omar filed joint tax returns before she married husband  Yahoo NewsMinnesota campaign finance officials said last week that Democratic U.S. Rep. Ilhan Omar misused campaign funds in violation of state rules. Q: What did Omar ...
Botched your tax withholding in 2018? It's about to get more complicated  CNBCFine-tuning your tax withholding is about to get a little more complicated. The Internal Revenue *Service* is expected to release a draft of its new Form W-4, the ...
Shin Bet chief met with Abbas over PA tax money held by Israel — report  The Times of IsraelNadav Argaman reportedly tried to convince Palestinian Authority head to accept funds collected by Jerusalem, amid fears of a financial collapse in the West ...
NY state passes bill allowing Congress to request Trump's tax returns  CNNDemocrats in New York state passed a pair of bills Wednesday that would allow Congress to get hold of President Donald Trump's state tax returns amid an ...
Tax settlement body orders Indiabulls Real Estate to pay Rs 300 cr on undisclosed income  MoneycontrolThe Income Tax Settlement Commission, in an order on April 30, has asked Indiabulls Real Estate to pay Rs 300 crore, as tax and interest charges, ...
Corporations paid $91 billion less in taxes in 2018 under Trump's tax law  Yahoo FinanceThe IRS collected $91 billion less in 2018 than they had in 2017, under the new Trump tax law.
Sin tax is good for you ‑ and economy  Times of OmanYour browser does not currently recognize any of the video formats available. Click here to visit our frequently asked questions about HTML5 video.
Revised tax treaties usher in a new era in investment, taxation  LivemintNEW DELHI: For about a decade-and-a-half, revenue authorities examining foreign investment proposals received by the erstwhile Foreign Investment ...
ET View: Remove arbitrariness in tax administration  Economic TimesThe Centre has sent out a stern warning to tax sleuths of zero tolerance towards graft.
Goods and services tax, a game changer? Not for home decor firms at least  LivemintAfter the goods and services tax (GST) was introduced in 2017, home decor companies were in the spotlight because plywood, laminate and ceramic tile ...
What is the tax implications if I transfer inherited mutual fund units to my sister?  Economic TimesI inherited some mutual funds from my late father. One scheme in which the initial investment was Rs 12 lakh is now worth Rs 19 lakh. I want to transfer half the ...
U.S. Business Contributes Smallest Share of Taxes in Generation  BloombergU.S. corporations are contributing the smallest share of federal tax revenue in a generation. That's one of the findings in the Data Book for 2018, released by the ...
India’s DTAA with Canada doesn’t offer tax relief on gains from sale of property  LivemintI bought a flat in December 2017 for ₹1.2 crore in New Delhi. However, I got a job offer in 2018 and moved to Canada as a permanent resident. I have some ...
PF tax-exempt on completion of five years of continuous service  LivemintAs per Fourth Schedule of the Income-tax Act, the accumulated PF balance due and payable to an employee is exempt from tax, if the employee has rendered ...
Boris Johnson to Cut Business, Individual Taxes If Elected PM  BloombergBoris Johnson wants to cut business taxes and raise thresholds for income tax if elected prime minister, the Telegraph says, citing an op-ed by Johnson.
Big business unlikely to get corporate tax relief, LTCG tax may be raised  Business StandardIndustry has pitched for gradual reduction in corporate tax to 25 per cent from the current 30 per cent, claiming it will bring the tax incidence at par with similar ...
Why this Kolaveri over arrest of tax evaders by GST commissioner?  Business TodaySince the GST law provides a commissioner the power to arrest a person in case he has reasons to believe that the tax evasion is likely to be more than Rs 5 ...
Tax optimiser: How Shah can cut tax by Rs 42,000 via tax-free perks, NPS  Economic TimesAnju Shah could save over Rs 42000 in tax if she opts for tax-free allowance and the NPS benefit offered by her company. Here's how.

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