Who can use the TAR Plan, and is it applicable to sole proprietors?

The **TAR Plan** (Time Averaging Recognition Plan) is typically designed for businesses that experience fluctuating income levels. It allows for the smoothing of income over several years to reduce tax burdens in high-income periods. While the specifics of eligibility can vary based on jurisdiction and plan structure, in many cases, the TAR Plan applies to businesses of various sizes, including **sole proprietors**, who often experience irregular income patterns. Sole proprietors can benefit from the TAR Plan to stabilize their tax obligations across fluctuating financial years, making it a useful tool for small businesses. However, it's important to check the specific rules in your region.