Tax evasion is the practice of not paying your taxes. This is a serious crime if it is not remedied appropriately.
Tax avoidance is the practice of lawfully arranging your affairs so as to minimize taxes by doing such things as deferring income from year to year.
There are several ways by which you can minimize or eliminate your taxes:
The practice of postponing the receipt of income until after midnight on December 31st which allows the income to be taxable for the new year and need not be claimed on the current year's tax returns.
Tax deductions are items you can deduct from the subtotal of taxes to be paid. There are both "above-the-line" and "below-the-line" deductions which include the following:
You may deduct contributions to qualified charitable organizations as long as the deduction does not exceed 50% of your adjusted gross income. Excess deductions can be carried forward to the next five taxable years. Your adjusted gross income includes your income adjusted downward by specific deductions, but not including standard and itemized deductions.
If you have been accused of Tax Evasion or you are facing an audit, you should speak to a lawyer immediately to learn more about your rights, your defenses and the complicated legal system.
Last Modified: 02-01-2017 02:19 PM PSTLaw Library Disclaimer
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