Why Does My Business Need a Tax Lawyer?

scales of justice

For a small to medium-sized business, one of the most complex yet important aspects of running the day-to-operations involves taxes. Whether it’s knowing how and when to file tax returns or what to do if the IRS comes calling with questions, tax issues can be a potential disaster if mishandled. To ensure this does not happen, many businesses choose to hire a tax lawyer to assist them with these and other tasks. If you find yourself with more questions than answers when it comes to your business and its taxes, here are some important reasons to work with a tax lawyer.

Clarifying Income
Since business income can come in many forms, it’s important to know the income reporting responsibilities of your business. Since the IRS focuses on “gross income,” you’ll need an experienced lawyer to assess the goods, property, services, and income derived from sales in order to know what must be filed with your taxes. Otherwise, your business will be facing stiff fines, penalties, and interest added on to your tax bill.

Know Your Tax Year
While this may sound easy, it can actually be very confusing for many businesses to know their tax year. Even though all businesses have tax years, some are free to set their tax year, while others must adhere to the tax year required by the IRS. By working with a tax attorney, a business can choose the tax year that best suits its needs, or ensure it is complying with the IRS tax year.


Pleading Ignorance
For those businesses that choose to not hire the services of a tax attorney, pleading ignorance will get them nowhere with the IRS. Of all the risks associated with not working with a skilled attorney, being ignorant of the IRS rules and regulations is perhaps the biggest and potentially most damaging. If a business fails to meet its tax obligations on an annual basis, the damage could be so great that it forces the business to close.
Changing Rules
As everyone knows, tax rules change from year to year. By using a knowledgeable attorney, business owners can keep abreast of the changing IRS rules and consult with their lawyer on how these changes will impact the amount of taxes owed. Because these lawyers continually examine the Tax Code, they are able to interpret new rules and immediately know how they will affect your business and its earnings.
 

Responses are currently closed, but you can trackback from your own site.

Comments are closed.