2018 is almost up and you are probably looking forward to the holiday with lots of activities. The end of the year is very important to any business as many countries have their financial year run from January to December.
As a business, it’s important that you check if your accounting records reflect what you’ve been doing the whole year. They should be balancing to avoid any issues with the ‘’tax man”. Legal activities should be involved as you do this.
What’s the Focus for December?
December is recorded with slow business operations. This is because people are looking forward to the New Year with new plans that will push them to the end of the following year.
It’s important that you do a thorough review of the years financial records. They are essential in decision making for the coming year. Many companies find this challenging due to improper record-keeping and some unusual activities.
In case the business is not in the position to successfully wrap up the accounting year, problems are likely to arise. The owners are not able to read the failures or successes of the business. The problem is rolled over to inaccurate assumptions on tax filling processes. More costs are incurred if the business has to do the same for annual Government auditing.
Hiring a Lawyer
In case a taxation crisis erupts when closing the year, a lawyer may help. Although the problem may not go to this extent as many companies take the issue of taxation very serious. However, if there is an imbalance in the auditing process, you are likely to arrive here.
Working with a tax lawyer will not only help you evade the problem but it’s also less expensive than when you take the matters into your hands.
A tax lawyer will help in the following ways:
- A medium sized company is not complete with only an accountant. The tax lawyer chips in to assist in strategies for tax planning and accounting practices. Some companies opt to employ the lawyers as employees of the company.
- Corporate tax law. In fact, many of the attorneys have specialized in this and can really come in handy in such a crisis. They are mainly essential in big companies as they oversee the legal relationships with business structures. Their workload is during the taxation season.
- Some companies operate overseas. The fact that they operate away does not mean that they can evade taxes. This is a vice that is not tolerated in any country. However, it’s important to be aware that you should still meet your tax obligations no matter the crisis. The law attorneys have the knowledge and they can advise you accordingly in this complex area of taxation.
What about the Back Taxes?
Back taxes are the taxes that you are unable to pay when the year comes to a close. In case you find yourself in this situation, be prepared to pay extra penalties and interests. Asking for an extension makes no change.
According to attorneys, it is reasonable to pay back the back taxes as soon as possible. You can never get away with the back taxes. In addition, the revenue collectors will ensure that they do whatever it takes to get it.
These include placing levies on banks, accounts and garnishing your wages. In some cases, they can come and possess the business or sell it to clear the tax. However, this is not likely to happen as there are laws that govern the tax collection. It is advisable that you find a way of clearing up the back taxes before it is too late.
Bottom Line
Closing the year is not only important for taxation purpose but also for the general performance of the business. To ensure that you have a smooth ending of the year, ensure that you have kept proper accounting records right from the beginning of the year.It is advisable that you hire an attorney that will work in conjunction with the financial department for a smooth running of the business.
