There is so much information available totally FREE of any charges. These FREE, 0$, information is just worth that 0$.
Sometimes they are outdated and expired and it can cost you tons of money in audit, penalty, extra tax not to mention stress.
In simplest terms, tax planning is using the tax code to take advantage of every possible credit, deduction, exemption, exclusion, and write-offs allowable by law.
Legitimate tax planning does NOT include
- failing to report taxable income,
- misrepresenting facts,
- “hiding” funds in an offshore jurisdiction, or
- failing to pay taxes based upon the “unconstitutionality” of the tax law.
The IRS has a website (www.irs.gov) that alerts US taxpayers of some of the latest “tax scams.”
The tax code describes certain types of transactions or entities that have been given favorable tax treatment. Any one of these tax-favored transactions or entities is generally referred to as a “Tax Strategy.” To put it another way, tax planning is analyzing the tax code to determine which strategies are or can be made applicable to your circumstances.
Moreover, tax planning should include your gaining an understanding of the advantages and limitations of the strategy so that you are not putting into motion a strategy that will hinder you from reaching your other financial goals down the road. An important point to remember is that no single strategy will perfectly meet all your needs. Congress has designed each strategy for a specific and narrow use. As such, many individuals use a combination of strategies in their overall plan, thus allowing the individual to benefit from the favorable tax treatment of the various strategies while reducing the amount of overall limitations.