When to Hire a Tax Attorney Versus an Accountant?
Keeping a small business on good financial footing can be harder than it seems. As a business owner, you need to learn how to handle the financial problems that come your way. Dealing with tax problems can be one of the most stressful things a business owner encounters.
If you want more information about when to hire a tax attorney, consider the great tips below.
Dealing With Significant Life Changes
Most business owners fail to realize that major changes in their lives can have a ripple effect on their finances. When changes like getting married/divorced, inheriting money or buying real estate occur, you will have to assess how this affects your tax burden. Failing to compensate for these changes can lead to some unwelcomed surprises during tax filing time.
Changes that can affect your tax liability should be dealt with by a tax attorney. Instead of waiting until it is time to file to address these issues, act now. The longer you wait, the harder it will be to avoid an astronomical tax bill. A tax attorney can provide you with a breakdown of how to address these changes and minimize your tax burden .
Starting a New Business
It takes a lot of courage to start a business and leave a full-time job. When you decide to take this leap of faith, you need to prepare for the tax burden you will encounter. Choosing the right business structure is a crucial step in setting your business up for financial success. Making mistakes with your business structure can lead to lots of tax problems in the future.
Instead of relying on your limited understanding of the business tax code in the United States, you need to seek out some legal help. A tax attorney will be able to help you choose the right structure. They can also help you take advantage of tax deductions for things like a home office, work supplies, and travel expenses.
You’ve Been Contacted By The IRS
Few things are more nerve-wracking than getting a call or mailed notice from the IRS. When this type of contact occurs, you need to work on staying calm. You also need to avoid making any rash decisions before you consult with a legal professional. This type of contact occurs when the IRS thinks you owe them money or you are being audited.
Regardless of what the reason for this contact is, you need to address problems with the IRS immediately. By consulting with a tax attorney, you can get an idea of what your rights are. A tax attorney can also help you iron out a strategy for dealing with these problems.
Finding The Right Tax Attorney
If you find yourself in need of a tax lawyer, you need to take your time to find the right one. The best way to find out more about what a tax attorney can do is by scheduling a consultation. Going to a few consultations with tax lawyers in your area will make choosing the right one much easier.
Rushing through this process can result in more problems developing. Before going in for a consultation with a tax attorney, make a list of questions you want to ask. Going into this process organized will make getting the help you need a breeze.