As a small business owner, it’s important to keep in mind that taxation is one area of your business practice that leaves no room for error. While most people are worried about the threat of additional taxes, penalties and interest charges, these are really just the tip of the iceberg when it comes to tax-related mistakes. Whether you have poor record keeping practices or the complexity of your tax filing has increased as your business has grown, the benefits of working with an experienced tax attorney greatly outweigh going it alone.
Top 7 Reasons to Hire a Tax Lawyer
1. Time
You have plenty of things to worry about as you go about your daily operations without adding complicated tax laws to your list. Learning about the various tax obligations your business must comply with can be very time-consuming. An experienced tax attorney can go over everything you need to know and what you need to do to avoid an audit by the IRS.
2. Setting Your Tax Year
All businesses have a tax year that can be defined by the calendar year or fiscal year. In some cases, you may be able to set your own tax year but in other instances, the government will set your tax year for you. Your tax attorney can help you chose the appropriate tax year that works best to meet your business needs or they will help to ensure that you comply with all the government requirements under your business tax year.
3. State and Local Taxes
These taxes can be very tricky to deal with because different obligations may be triggered depending on where transactions take place and the type of activity outlined. For example, if your company is based in one city but conduct much of your sales outside of the city limits, you could be left do navigate complex tax calculations. With the help of an attorney, you won’t waste time trying to figure out these minor details.
4. Employee Taxes
Even for businesses with zero true “employees,” there may be certain requirements you must meet for self-employment taxes, such as quarterly estimated tax payments. In many cases, a sole proprietor can be considered both an employer and an employee, leading to many complicated tax implications. If you are unsure where you stand in this area, consulting with a knowledgeable tax lawyer is a good idea.
5. Business Income
When preparing your taxes, remember that the IRS is interested in your “gross income” which includes everything from services and property to goods, bartering and income that is derived from sales. When you file your business taxes you need to have a clear idea of what falls under “gross income” or you could end up paying additional taxes for anything that you fail to report.
6. Business Deductions
Your business deductions are one of the best ways to offset your business income and lower the amount that you owe to the IRS. But before you can take advantage of this great advantage, you must know what deductions are available to you and what is required before you can muse them. Your tax lawyer will help to optimize your deductions and ensure you aren’t paying more than you need to.
7. Keep Up with Changes
Just when you think you’ve gotten the hang of filing your business taxes, the rules can change on you. Both federal and state tax laws can change frequently and you can expect to deal with new Tax Code each year. In fact, during the year the IRS can issue new rulings interpreting the Tax Code daily. Experienced tax attorneys have the knowledge and skills necessary to follow these rulings and understand how they will impact your business.
Contact Our Tax Attorneys Today
Want to learn more about the benefits of working with an experienced tax attorney? Our highly-skilled and reputable team is here to help ensure you meet IRS requirements and don’t miss out on important deductions this year. Contact the team at France Law Firm online today for more information or to schedule a consultation.
