【文章內(nèi)容簡(jiǎn)介】 arent pays. Some business owners are able to further reduce their tax burden by paying wages to their spouse. If these waes bring the business owner39。s ine below $62,700— the threshold for FICA taxes— then they may reduce the selfemployment tax owed by business owner. It is important to note, however, that the child or spouse must actually work for the business and that the wages must be reasonable for the work performed. BENEFITS PLANS AND INVESTMENTS. Tax planning also applies to various types of employee benefits that can provide a business with tax deductions, such as contributions to life insurance, health insurance, or retirement plans. As an added bonus, many such benefit programs are not considered taxable ine for employees. Finally, tax planning applies to various types of investments that can shift tax liability to future periods, such as treasury bills, bank certificates, savings bonds, and deferred annuities. Companies can avoid paying taxes during the current period for ine that is reinvested in such taxdeferred instruments. Tax Planning for Different Business Forms The first step in tax planning— for small business owners and professionals, at least— is to select the right form of anization for your enterprise, according to Albert B. Ellentuck in the Laventhol and Horwath Small Business TaxPlanning Guide. You39。ll end up paying radically different amounts of ine tax depending on the form you select. And your odds of being audited by the IRS will change, too. Many aspects of tax planning are specific to certain business forms。 some of these are discussed below: SOLE PROPRIETORSHIPS AND PARTNERSHIPS. Tax planning for sole proprietorships and partnerships is in many ways similar to tax planning for individuals. This is because the owners of businesses anized as sole proprietors and partnerships pay personal ine tax rather than business ine tax. These small business owners file an informational return for their business with the IRS, and then report any ine taken from the business for personal use on their own personal tax return. No special taxes are imposed except for the selfemployment tax (SECA), which requires all selfemployed persons to pay both the employer and employee portions of the FICA tax, for a total of percent. Since they do not receive an ordinary salary, the owners of sole proprietorships and partnerships are not required to withhold ine taxes for themselves. Instead, they are required to estimate their total tax liability and remit it to the IRS in quarterly installments, using Form 1040 ES. It is important that the amount of tax paid in quarterly installments equal either the total amount owed during the previous year or 90 percent of their total current tax liability. Otherwise, the IRS may charge interest and impose a stiff penalty for underpayment of estimated taxes. Since the IRS calculates the amount owed quarterly, a large lumpsum payment in the fourth quarter will not enable a taxpyer to escape penalties. On the other hand, a significant increase in withholding in the fourth quarter may help, because tax that is withheld by an employer is considered to be paid evenly throughout the year no matter when it was withheld. This leads to a possible tax planning strategy for a selfemployed person who falls behind in his or her estimated tax payments. By having an employed spouse increase his or her withholding, the selfemployed person can make up for the deficiencyand avoid a penalty. The IRS has also been known to waive underpayment penalties for people in special circumstances. For example, they might waive the penalty for newly selfemployed taxpayers who underpay their ine taxes because they are making estimated tax payments for the first time. Another possible tax planning strategy applies to partnerships that anticipate a loss. At the end of each tax year, partnerships file the informational Form 1065 (Partnership Statement of Ine) with the IRS, and then report the amount of ine that accrued to each partner on Schedule K1. This ine can be divided in any number of ways, depending on the nature of the partnership agreement. In this way, it is possible to pass all of a partnership39。s early losses to one partner in order to maximize his or her tax advantages. C CORPORATIONS. Tax planning for C corporations is very different than that for sole proprietorships and partnerships. This is because profits earned by C corporations accure to the corporation rather than to the individual owners, or shareholders. A corporation is a separate, taxable entity under the law, and different corporate tax rates apply based on the amount of ine received. As of 1997, the corporate tax rates were 15 percent on ine up to $50,000, 25 percent on ine between $50,000 and $75,000, 34 percent on ine between $75,000 and $100,000, 39 percent on ine between $100,000 and $335,000, and 34 percent on ine between $335,000 and $10 million. Personal service corporations, like medical and law practices, pay a flat rate of 35 percent. In addition to the basic corporate tax, corporations may be subject to several special taxes. Corporations must prepare an annual corporate tax return on either a calendaryear basis (the tax year ends December 31, and taxes must be filed by March 15) or a fiscalyear basis (the tax year ends whenever the officers determine). Most Subchapter S corporations, as well as C corporations that derive most of their i