How A Tax Attorney Can Help Your Business
Running a business means a lot of hard work because there are probably countless things you need to take care of. What makes things more challenging is the fact that every aspect requires attention and you cannot go slack on them. You are expected to be in full control of every last detail, including filing and paying your taxes on time.
But this is something that may take the backseat because it’s hard on the mind through the year. Only approaching deadlines jolt business owners back to reality. However, you can resolve this concern by having an IRS tax lawyer on board. Beyond just looking after your taxes, there is much more these professionals can do for you. Here are some reasons why you must absolutely collaborate with one.
Follow up tax deadlines
The most obvious advantage of having a tax lawyer by your side is that they follow up tax deadlines and make sure that you are sorted out. They guide you about the how and when of filing returns and paying taxes so that you never get into trouble with the IRS. Business taxes are often complex and may vary according to the location, size, and structure of the entity. There are complexities related to employee taxes and local levies.
With their skill and experience, these professionals can handle the A to Z of taxes for you. You can leave things to them and focus on other critical tasks such as revenues and long-term growth.
Determine the best business structure
Whether you are just starting up or r are options like a sole proprietorship, partnership, LLC and corporation which you can consider. Your tax lawyer can guide you about the implications of each choice and help you understand how it would affect your tax status in the future. An informed decision at this stage can help you cut complications and help you save up on taxes in the long run.
Avoid interests and penalties
When it comes to filing and paying taxes, you can go wrong in many ways and even be penalized by the IRS. A tax attorney can save you from such penalties and interests by suggesting alternative arrangements. For example, they can obtain a tax-filing extension for your business if it seems that you will not be able to meet a deadline. Similarly, they can make sure that you don’t leave out any critical information on your tax returns as this can also lead to fines, interests, and penalties. Further, they can handle calls and letters from the IRS and manage tax disputes if they arise.
Guide you about tax deductions and exemptions
As a business owner, you are eligible for certain tax deductions and exemptions such as home office deduction, depreciation, equipment purchases, employee benefits and more.
You may not want to miss them because they can bring down your taxable income significantly. However, the sheer number and variety of these deductions and exemptions can confuse you. While some may be valid in your case, others may not and you can claim only the legitimate ones. A tax lawyer can help you identify and claim the legitimate ones so that you can save up on your business taxes. On the other hand, they ensure that you don’t get into trouble with the IRS just because you claimed wrong deductions out of sheer ignorance.
Offer knowledge on the latest tax codes
Another advantage of having a legal tax professional for your business is that they have complete knowledge of the latest tax codes. A layman may get into trouble with tax laws simply because of non-awareness but a lawyer keeps things sorted out. Not only do they know what the current codes are but also understand how they apply in your business. With business tax laws, there is no one-size-fits-all approach and only a professional can guide you about the specifics that apply for your entity. For example, you may not understand the concept of taxes if you run an international business. And obviously, this cuts down the burden of researching and finding out about the latest laws and codes as well.
Now that you understand the advantages of having a dedicated tax lawyer for your business, this is something you should definitely do. Look for one with the right expertise and experience in your domain. Good reputation matters as well because you can trust them to handle this key aspect so that you may focus on your growth and profits rather than worry about taxes.