Have you ever done a Tax Planning exercise? Do you know the difference between Tax Preparation and Tax Planning?
Tax Preparation is the backward-looking process of using your income to produce a tax return for the IRS. It is done after the fact and its main purpose is compliance.
Tax planning however, is a strategic and proactive look at your business and personal finances in an effort to Legallyminimizeyour tax exposure while ensuring that you are in compliance with the Internal Revenue Code (IRC).
Not knowing the difference between the two can cost youthousandsof dollars in unnecessary over payments, fees, penalties, interest charges or even jail time.
I am a Tax Strategist who helps Auto Shop owners to reduce taxes by as much as 50% and eliminate financial risks.