Why Should I See A Tax Attorney?
- June 2, 2019
- Posted by: asal
- Category: Tax Resolution
When you own a business, the area in which there is no room for error is taxes. Taxes and interest and penalties from back taxes are just the beginning for making tax mistakes. If you don’t keep good records, that could lead to a tax audit. A tax audit is expensive and can take countless hours of record-gathering and preparation. Also, if you aren’t paying taxes on time, you’ll end up with back tax debt. Talking to a tax attorney is critical to understand what the IRS requires. Read on for top reasons to see a business tax attorney for help.
Save Yourself Time
It’s time-consuming learning about your various tax obligations and what you must do to meet them. Who knows tax obligations better than anyone? A business tax attorney. Tax attorneys can tell you what you need to know. A tax attorney will also inform you of what, when, why, and how to handle your tax obligations.
A Tax Attorney Provides Immediate Help
You should not learn tax obligations and record-keeping on the job. The day that you start your business, you should have a system in place. Having a system in place will help you avoid any back tax issues in the future. There are usually start-up costs that exist for new businesses. New businesses will also have inventory costs for items such as letterhead and business cards. You’ll also have to pay to hire at least one employee, even if it’s just you. Your business is critical to the IRS and state taxing agencies from day one. Starting a new business should be as important from day one for you, too.
Help understanding Business Tax Years
There are specific tax years that exist for businesses. You can sometimes set your tax year. Other times, the government makes this decision for you. A tax attorney who understands your business can help you choose an appropriate tax year. Alternatively, a tax attorney will ensure you obey what the government requires regarding your businesses’ tax year.
When You Have Business Income
Business income can come in many forms. According to the IRS, your business “gross” income includes the following:
- Revenue from sales
It’s imperative to know what the IRS considers “gross income.” Failure to report something as “gross income” can lead to paying more back taxes, interest, and penalties. Get the correct information on your income reporting responsibilities from a tax attorney.
Dealing with State Taxes
Some of your business income might come from doing business outside of your state of residence. It’s essential to be aware of tax obligations in conducting business outside of your home state. Ignoring out-of-state tax obligations can lead to back tax issues. Before you find yourself seeking tax resolution for your business, consult with a tax attorney. A tax attorney can guide you through the confusing and complicated area of taxation.
Dealing with Employee Taxes
You may be required to meet the tax requirements for a self-employed individual even if you have no employees. As an independent contractor, you may have to make quarterly estimated tax payments. You may not have to pay business taxes as a sole proprietor. However, you might be considered both an employer and an employee. The tax implications of this dual role can be challenging to understand. Working with a tax attorney can help inform you of your tax responsibilities. When you own a business, you want to make sure you’re doing what’s necessary to file taxes correctly. Doing so can avoid any confusing or back tax issues in the future.
Understanding Business Forms
Various business forms have various tax obligations. A tax attorney can help you determine the best form for your business. One factor to consider when deciding which form to use is your economic situation.
Tax Deductions for Businesses
One of the best advantages of starting a business is the availability of tax deductions to offset income. However, if you want to take advantage of these deductions, you’ll have to know about them. A tax attorney can help you optimize your tax deductions as a business owner.
Keeping up with Tax Code Changes
The government is constantly changing the tax law for each state. There is usually a new tax code released every year. A tax attorney stays up to date on these changes and will understand how they impact your business.
You Don’t Want to Say, “I Didn’t Know.”
One of the phrases you want to avoid using in front of the IRS is, “I didn’t know.” A tax attorney will make sure you know and do what is necessary to satisfy your tax obligations. Working with a professional who understands the tax code and your business will save you in back taxes. A tax attorney can also prevent you from requiring tax relief in the future.
Working with a tax attorney can save you money and headaches as you grow your business. Finding a tax attorney whom you trust is going to be a large part of your business.
Consult a Tax Attorney At Platinum Tax Defenders
When you own a business, you want to do whatever you can to keep it growing. Hiring a business tax attorney is the first step to ensuring your business succeeds. Don’t make tax mistakes early on and end up owing back taxes. Back tax debt can cause you to lose your business if you aren’t careful. Platinum Tax Defenders can also help you prepare for next year’s taxes. The IRS only wants to get what money you owe them in back taxes. When you don’t pay your business taxes, your back tax debt can add up. That’s where a tax relief services company can come in handy. It’s imperative that you work with a tax attorney who knows the IRS inside and out. When you hire a tax attorney, you’re only helping your business. Call Platinum Tax Defenders for a free consultation today.