If you’re like most business owners, you have one thing on your mind: growing your business. But growing a business often presents a host of new legal and financial challenges. And when it comes to taxes, you need an expert who can make sure your company is getting what it’s legally entitled to. The following are nine reasons why hiring a tax attorney is better than dealing with the IRS yourself:
1. Save time on sorting through tax regulations, rules, or forms
Tax lawyers are subject matter experts on all things relating to taxes. They know what they’re doing, and they know how to do it quickly and efficiently. If you spend hours trying to figure out how much money your business owes in taxes or what form you need to file for a specific type of deduction, it might be time for an expert opinion. You don’t want to spend your valuable time searching through thousands of pages of laws and regulations that might apply to your business, a task only a trained professional can handle effectively.
2. Take full advantage of your rights and business assets
It’s easy for businesses, especially small ones, to miss out on valuable deductions or credits they’re entitled to take advantage of under the law. Tax attorneys know exactly which incentives apply to businesses like yours so they can maximize them for you. For example, certain deductions and tax credits may be available to you if you own rental real estate. However, these benefits may be lost if they aren’t claimed appropriately or if they’re overlooked altogether by mistake or ignorance.
3. Understanding complicated and ever-changing tax laws
The IRS is constantly changing the rules of the game, and that can make it difficult for businesses to stay compliant. And so many other factors go into calculating taxes for your business, which means ample opportunities for mistakes. A good tax attorney can help you navigate these changes and avoid potential pitfalls without charging an arm and leg for it.
More: Tips to file small business taxes before new April 18 deadline — Bree Manay, CPA
4. Avoiding tax-related legal consequences
Tax attorneys know how to navigate the ins and outs of the tax code and how to protect their clients from legal problems. The IRS has broad powers when it comes to collecting taxes owed by businesses and individuals, including levying fines, issuing liens against property, and seizing assets if necessary. A tax attorney can help if the IRS tries to collect money from your business or individual accounts before they’ve been assessed by the agency or before they’re due.
5. You need advice about business structure for tax purposes
A business needs a structure that will allow it to operate most efficiently while keeping taxes low enough that profits are maximized, but not so low that they become illegal deductions or credits. A good lawyer will work with you to design a structure that meets both goals while also protecting your assets in case something goes wrong down the line.
6. The IRS has selected you for an audit
The IRS collects revenue from taxpayers based on their reported income. If they believe you’re under-reporting income or claiming deductions inappropriately, they’ll want to know why. The IRS has several tools at its disposal to make sure all taxpayers are reporting their income correctly, including audits and investigations.
If you’re facing an audit from the IRS, it’s best to have someone by your side who knows how these processes work, especially if this is the first time something like this has happened to your business. An experienced tax attorney can help ensure that your case is handled properly and that no mistakes are made during the process, since the stakes are high if something goes wrong.
7. The IRS has sent you a notice of intent to levy
The IRS sends out millions of notices every year, but that doesn’t mean they’re all issued for the same reasons. If you receive a notice from the IRS, it’s important to understand what type of notice you received and why it was sent before making any decisions about how to proceed.
If they send you a notice that they intend to levy or seize your assets because of nonpayment of taxes, consult with an attorney immediately. This is especially true if the notice was sent because of an error on your part or if the IRS says that they have already issued a judgment against you.
8. Your tax returns have not been filed on time
If your business is not filing its tax returns on time, this can cause major issues with the IRS, including fines and penalties. Your business should file its tax returns in a timely manner so that all the amounts reported are accurate and up to date. If your business is facing issues with filing its taxes on time, and you need help understanding tax rules and regulations, a seasoned tax attorney can help guide you through the process.
9. Your business faces penalties related to your taxes
If you’re charged with tax evasion, fraud, or other crimes involving your business taxes, it’s time to seek legal counsel from a trusted tax attorney, if you haven’t already. A tax attorney can help defend your case against these charges, which can result in penalties or even jail time if you’re convicted. The earlier you get help from a tax attorney, the more likely they can help protect both your personal assets and those of the business.
Taxes are a fact of life for businesses and individuals alike. Keeping up with the ever-changing laws and regulations can be a full-time job, so it’s important to hire a tax attorney to help you through the process. Tax attorneys have extensive training in tax law, ensuring that you can rest easy knowing your business is being represented by someone who knows what they’re doing.
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