Whether you have a small business or a large one, a key element that keeps you in the clear is a tax audit lawyer. Tax audits can be called for a number of reasons and neglect in record keeping one of the reasons thing could turn out bad if you have to respond to one and are not prepared. If you are called to pay penalties, extra taxes and interest for missing records and having no back up documentation, it could be pretty costly. A tax audit attorney can also help when it comes to understanding the requirements from the IRS and the tax boards. Tax mistakes can put a dent in your finances. Listed below are some important reasons why having a tax attorney is an asset.
Time – If you need to know the minute details of the obligations you are required to meet regarding taxes, the tax attorney is trained to do just that. Rather than misusing your valuable time trying to learn all of the information, get direction from your attorney. Since you are not trained in this area, you may overlook some really important details.
Time – Part 2 – On the job training is really important in some jobs, but as a business owner, you do not want to be trying to learn about your tax obligations and details when they are due. There could be costly oversight. Hiring a tax attorney at the beginning of your operation is one of the best steps you can take to prevent financial disaster. Inventory and other details are part of the priorities when starting a business. A tax attorney should be a specific part of those details.
Tax Year – Whether you have a traditional tax year or establish one custom to your business needs, a tax audit attorney will help to set that up.
Business Income – What does that mean for you? Identifying what applies as business income can alleviate unnecessary expenses. Determining whether your specific property, goods, services, or particular income may quantify as business income is part of the tax attorney’s job.
State Taxes – Can you say confusion? Sometimes determining what your state obligations are can be downright frustrating. What does it matter if you operate inside your state and should you pay taxes if you operate outside of the state you reside in? These state tax questions and many others can be individually addressed by your tax attorney.
Employee Taxes – When own a business and work for yourself, even by yourself, your tax obligations do not disappear. Paying taxes by quarter may be necessary to meet your tax obligations. This is another specific area that can be decoded for you by your tax attorney. What is your particular role and to what extent are you obligated as a sole proprietor?
Business Forms – Filing certain forms may be a requirement for your business so that you are in check with any necessary agency. Your tax attorney will have the ability to determine what forms are required from your business, when they need to be filed, and how often.
Business Deductions – You mean I can not deduct haircuts! Deductions get some people in trouble. Knowing exactly what deductions are available to you is really important. There may be qualifications for certain deductions. You may also not want to miss out on any deductions that are given for your specific business.
Changes, Changes, and More Changes – Because the tax changes come frequently, and every year new regulations or requirements are added to the already major list of them, your tax attorney is abreast of what the new changes are and how many apply to you.
Ignorance is Not Bliss – Feigning no knowledge of any particular tax law or requirement will not relinquish your responsibility to comply and certainly may not remove the circumstances of non-compliance. A tax attorney is trained for the purpose of making sure that people are aware of what concerns them and that they protect their assets. Your business is an asset, a legacy, a living. Why would you not protect it to keep it going strong?