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5 Reasons Why Small Businesses Should Consult A Tax Attorney
Small business owners have hundreds of issues to deal with and taxes are one of them. In fact, this is an aspect that you should not overlook at any cost because doing so may have serious consequences. Filing and paying your taxes on time is critical to ensure that you do not face the wrath of the IRS. Even if you feel that you may be able to handle business taxes on your own, it is better to get legal advice. An IRS tax attorney is the best person who can guide you with these matters. There is more than one reason why you should consult a professional attorney to keep tax-related issues under control. Let us list a few of them for you.
Paying taxes before they are due
Obviously, you need to pay your business taxes on time. Not doing so can result in serious issues and even legal action against your business. This is something that your tax lawyer can help you with. Business taxes may vary on the basis of the location and size of your business. For this reason, you will need expert guidance. An attorney can give you a clear picture of the federal and state taxes that you need to pay. They can also guide you about filing the returns with the right documentation and calculations. Additionally, they can convey the deadlines for taxes and ensure that you adhere to them. Filing and paying your taxes on time will keep things stress free for your small business.
Enabling you to claim exemptions and deductions
As a business owner, you will be legally entitled to claim certain tax exemptions and deductions. The expenses that you can deduct from the tax amount include depreciation, home office deduction, equipment purchases, and employee benefits. But you may fail to claim them due to lack of awareness. A tax lawyer can identify the exemptions and deductions that you can lawfully claim. At the same time, they ensure that you do not claim the ones that are not lawful because doing so can get you into trouble. These include personal expenses, home telephone bills, traffic tickets, etc.
Avoiding interests and penalties
Another reason why small businesses must hire a tax lawyer is that they can save you from interest and penalties. Most business owners encounter them because they fail to file their return on time. Sometimes, filing wrong information can result in a delay in the processing of the return. Delays can lead to interest and penalties piling up and you may not be able to pay them. In such situations, it is best to consult tax attorneys who are experts in IRS appeals. They can represent your business and convince the authorities to work out a compromise. For example, they can get your fines reduced or have them settled with deferred payment plans.
Providing guidelines about the newest tax codes
Small businesses need to keep track of the newest tax codes and updates. Unless you know them and act accordingly, you may face penalties from the IRS. But this is easier said than done if you have minimal knowledge about tax laws. Having a tax attorney to guide and advise you is the best approach. These professionals are fully aware of the newest tax laws and codes. Further, they can help your business stay abreast with them and do everything right. They can even assist you in reducing your tax burdens by using these laws to your advantage. With proper legal counsel, it becomes easy to make taxes uncomplicated for your small business.
Handling business contracts
One of the biggest concerns for small businesses is the tax implications of contracts. Collaborating with an IRS tax lawyer can be a smart move in this context. These professionals can review the contracts thoroughly and ensure that they do not lead to undue expenses and tax burdens. This is important for new contracts as well as the ones that you plan to renew. Just have an attorney go through them once before you sign them. Beyond managing your contracts, an attorney can also guide you about selling or expanding your small business. These are critical transactions that have major tax implications. So you must ensure that you have a legal expert to guide you and show you the right way.
Considering these reasons to hire a tax attorney, you can understand how important it is for your small business. This is something that you should not save money on because you may end up saving a lot in the long run.
