What is the Tax Code?
Formally known as the Internal Revenue Code (or IRC for short) is a set of laws enforced by everyone’s favorite branch of government, the Internal Revenue Service (IRS). Included in the IRC (which is over 70,000 pages, by the way), are all the relevant rules concerning income tax, gift and estate tax, employment and payroll tax, sales tax, and excise taxes. There are solutions within the IRC – all 70,000 + pages of it – that will help YOU legally and ethically reduce your taxes. Though anyone is welcome to read the tax code, most don’t (for good reason )😴
My accountant has read the Tax Code though, right?
Not likely. Because the CPA exam is focused on General Accepted Accounting Principles (GAAP), many of which do not relate to entrepreneurs or small business owners, the chances are highly unlikely that he or she is an educated tax planner. Though some accountants may offer reactive tax advice (after you’ve already signed the check to Uncle Sam), most don’t and won’t offer strategic tax planning. Bottom line, the financial industry is not set up to help you pay less in taxes.
As a small business owner, I don’t have the time (or desire) to read the Tax Code, but I am ready to lower my tax liability, what should I do?
You have a few options:
2/ Hire a professional that actually does know the tax code and how to use it.
Because Congress has the authority to amend the tax code and add items to it every year, the nature of the laws can be very messy. But that doesn’t mean you should fear using the tax code to your advantage. By educating yourself on the truth contained in the tax code, or by hiring a professional that actually does know the tax code and how to use it, you’ll know how to legally and ethically reduce your tax liability and recapture your belief in achieving your very own American Dream.