One of the most complex parts of running a business is paying appropriate taxes. Every owner wants to take advantage of as many deductions as possible to save on their tax bills. However, without the right knowledge, many miss out on discounts they didn’t know they could take advantage of.
Working with a professional like the Edina Tax Lawyers experts can help you stay within tax compliance and reduce your tax burden. Let’s take a closer look at a few reasons why small businesses should work with a tax lawyer.
Tax Code Knowledge
The IRS tax code currently has more than 1700 pages. It’s best to hire a tax lawyer who knows the code and is willing to research and apply the laws fairly and accurately. States and the federal government constantly change their tax codes. You don’t want to risk the decision of your case being influenced by outdated information or if you misunderstand the current tax laws. Do you want to risk this? If you hire a tax lawyer who has experience applying these codes to your particular IRS issue, he or she will know how to apply these codes to your case.
Filing Returns
The IRS returns that you need to file can also be handled by your tax law firm. If you need to make changes to some information on your tax return for this year, then you may want to contact a lawyer to help you file an amended return quickly and efficiently. In order to request an extension from the IRS, you will need to have your attorney fill out the necessary paperwork.
In addition to ensuring that you submit your tax returns on time, your counsel can also ensure that your proof of income is submitted on time in addition to your tax returns. If you need 1099s, 1098s, W-2s, or other income documents, you can let your accountant take care of that.
Intermediary
It can be intimidating to contact the IRS by letter or telephone. If you do not know what information to give to the agent assigned to your case, there may be questions you do not know how to answer. Your tax lawyer should handle all communications with the IRS so you do not incriminate yourself or accidentally give false information to them. Phone calls, letters, and other communications can be handled by your lawyer. It is your lawyer’s responsibility to ensure that all information you provide is accurate and factual.
Asset Protection
Lastly, your tax attorney will know how to protect your income and assets. It is possible for the IRS to place a lien on your assets and/or garnish your income if you owe them money. The following are some of the ways in which a tax lawyer can help you protect your finances:
- Making arrangements with the IRS for a payment plan
- Achieving a debt settlement through the use of an Offer in Compromise
- Request Currently Not Collectible status for your debt
- Credit cards, ACH withdrawals, money orders, or another method can be used to pay your debt
You can protect your income and assets from garnishment and seizure with all of these payment and settlement options. By taking these actions, you may be able to remove garnished wages or release liens already placed on your assets.
In order to recover your tax debts, the IRS may pursue you for recovery. These five benefits will ensure that your tax return stays out of IRS trouble when you hire a professional tax lawyer.
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