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expenses via spreadsheet. However, she feels she may have missed some expenses because of how busy she had been.
Slide Eight
In future filings, the client should keep better track of expenses concerning their business. These could include travel expenses to festivals for purposes of business and depreciation of business equipment. It also might be a good idea to investigate making estimated tax payments, as it will lower the tax liability at the end of the year.
Slide Nine
Tax avoidance is the practice of lowering the tax liability of the taxpayer. This is done through deductions, credits, charitable contributions, and IRA contributions. Deductions can include medical costs, mortgage interest, state and local taxes, and certain charitable contributions. This is known as itemized deductions. Refundable credits include EIC, ACTC, American Opportunity Tax Credit, and Lifetime Learning Credit. If taking the standard deduction, the taxpayer can also deduct eligible charitable contributions. The client should also investigate the possibility of enrolling into an IRA account.
Tax evasion is the intentional act of not paying taxes due. This has been done many times throughout the history of the IRS. Some examples of people being convicted of tax evasion are Willie Nelson, Wesley Snipes, and Al Capone.
