When it comes to essential tax knowledge, most people know not much! If you belong to this group and you’re trying to operate a business, you’re probably courting disaster. Tax pros can help make your business run smoothly and keep potential legal issues at bay.
If you’re planning to hire a tax lawyer but could use a little more push, below are solid reasons to pursue the plan:
Pro Tax Knowledge
tax code is composed of at least 2,000 pages. You likely won’t dream of reading it even if you needed to. Don’t put your business on the line for a small cost issue. With an attorney, you can make sure that everything is done right. Needless to say, a lawyer is an expert of law and can guide you along current state and federal guidelines.
Help with Returns
Perhaps the biggest benefit inherent in a tax attorney’s services is the much needed help you get when filing your returns. Your tax lawyer can also provide assistance with amended and late returns, as well as with extensions to make sure that these are taken care of as efficiently as possible.
A tax lawyer can work as an intermediary for instances where your business is audited or must communicate with the IRS for whatever reason. It can be frightening to do this by yourself, but an attorney will know what questions will be asked, and thus what information you should prepare in order to resolve the issue.
Protection for Your Assets and Payment
An attorney can ascertain that your income and assets are protected using various methods such as settling debts with a compromise offer or setting up an installment agreement.
When Do You Hire a Lawyer?
Ideally, you should hire an attorney before a problem comes up. But some situations will actually need you to hire a legal expert on your side. These are a few examples:
If the IRS has put you under audit, a lawyer can help you steer through the complicated process and keep it as hassle-free and penalty-safe as possible. You’ll be glad you hired a pro, considering how nerve-wracking this situation is known to be.
If the IRS has filed criminal charges against you, a tax attorney will be indispensable. You could be looking at jail time for tax evasion or fraud.
Even without committing any violations, you can easily get flustered or scared when you speak to an IRS representative. If, for any reason, you have been instructed to communicate with the IRS, the best way to do it is with an attorney acting as an intermediary.