Please Help Me To Write An Explanation Letter To Income Tax Officer For My Official Foreign Travel?


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When writing an explanation letter, you need to be completely honest. Lying to the tax officer can land you in a lot of legal trouble. Many people try to get around being taxed, but usually they will be found out and punished accordingly. Being dishonest to the IRS and your local treasury can be seen as fraud, so when you’re writing your letter, be sure to explain everything and talk about financial matters with transparency.

You should also make sure it’s going to the right office. You will need to send the correspondence to the correct address for your particular state. If you don’t know where that is, you should get in touch with your local authority over the telephone, and ask them for the information you’ll need in regards to contact details.

You will need to explain your current incomings and outgoings, and explain what tax you are currently paying. Your official foreign travel, if related to your business, should usually come as a deductable expense when you create your tax returns.

Given that the trip abroad was a business expense, the tax office allows you to take this amount from the income you have generated in a financial year. This reduces your overall annual ‘profit’, and allows you to be taxed on the amount that you have been allowed to spend on luxury goods, and your normal day-to-day life.

You should also check if your earnings are below the personal income allowance threshold, which allows you to receive a set amount of money before you begin to be eligible for paying tax.

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