10 Reasons to See a Tax Attorney for Help
For any business, taxation is an area where there really is almost no room for error. Additional taxes, interest, and penalties are just the tip of the iceberg for making tax-related mistakes. An audit can be a very expensive procedure. Having to put together records before an audit because of poor record keeping practices can lead to an audit -- an expensive procedure that can require countless hours of record-gathering and preparation. Talking to a tax attorney now is critical to your understanding of what the IRS and state tax boards require. Following is a list of ten key reasons to see a business tax attorney for help.
1. TIME. Learning about your various tax obligations and what you must do in order to meet those obligations is time consuming. An attorney can tell you what you need to know, and what you need to do -- when, why, and how.
2. TIME PART II -- IMMEDIACY. Tax obligations and record keeping are not things that you should attempt to learn on the job. You need to have a system in place on the day you start your business. New businesses usually have start-up costs, inventory costs (even if just for things like letterhead and business cards), and at least one employee (it may be just you). The IRS and state taxing agencies care a great deal about your business from day one. You must too!
3. TAX YEAR. Businesses have tax years. Sometimes you can set your own tax year, and sometimes the government makes this decision for you. An attorney can help you choose the appropriate tax year, or will ensure that you comply with government requirements as to your business;s tax year.
4. BUSINESS INCOME
. Business income may come in many forms. The IRS refers to "gross income" -- which includes goods, property, services, bartering, and income derived from sales. You need to know what the IRS considers "gross income," because failure to report something as "gross income" will lead to additional taxes, interest, and penalties. An attorney can clarify your income reporting responsibilities.
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