How Can People Avoid Tax Problems?

How can people avoid tax problems? If you are an employee, only claim your right number of dependants, and file your tax returns in February. If you are an employee, only claim your right number of dependants....

If you are an employee, only claim your right number of dependants. File your tax returns in February. It's really pretty simple from that perspective. Now as a person who owns a business, there are a lot of the expenses to owning a business that most people are not aware of and most people get into a business and are not business people. They are very good in what they do, but they are not business people. A contractor, for example, may build the best home in the world; a doctor may be a great doctor, but they are pathetic business managers and money managers in general. They should be knowledgeable about running small businesses and do what that CPA tells them to do. It will keep them out of trouble if they will just do that. But what happens is, the CPA tells them to withhold their taxes, send them in weekly. Another thing a self-employed person has to do as a sole proprietor is file estimated quarterly taxes. That means that I have to estimate how much tax I am going to have to pay for that quarter and I am supposed to send that in on a quarterly basis. Well, if a CPA tells you to do it, but you don't have the money to do it then you don't do it, at the end of the year you are going to owe that money. It's very hard for small businessman to keep up with all of that. That's why I say he has got to have a good CPA to help him to go through that.

© High Speed Ventures 2010