Tax planning is most commonly done to:
A) determine the tax penalty.
B) evade taxes.
C) minimize taxes.
D) pay taxes the person considers to be fair.
E) learn the tax code.

Question

Quizplus · Accepted Answer

Tax planning is the process of organizing one's finances in such a way as to minimize tax liability. This involves taking advantage of tax deductions, credits, and exemptions to reduce the amount of tax owed. It is legal and ethical, unlike tax evasion, which involves illegal means of avoiding taxes. Therefore, minimizing taxes is the most common reason for tax planning.

Tax Planning Is Most Commonly Done To