There is a feeling of satisfaction in owning a business. When you own and manage your own business, you are required to be in control of every last data. This includes filing and paying your business’s taxes on time without failing. 

However, when you find yourself taken aback by the task of paying your business’s taxes, you may welcome assistance from an IRS tax attorney. This tax professional can aid small business owners just you in a number of crucial and timely tax-related matters.

Paying Taxes When They Come Due 

The most noticeable benefit of hiring a tax attorney for your business involves informing you when and how to pay taxes as they come due. The amount and types of taxes you have to pay will based on factors like the size and location of your business. As a matter of fact, you may even have to pay employee taxes on a quarterly basis even if you do not have employees working for you. 

Regardless, your attorney can counsel you on how to file and pay federal and state taxes and also taxes that are charged by the city, county, or municipality where your business is situated. He or she will also have understanding on what tax document to use and file and what confirmation will need to be submitted along with your business’s tax returns. 

Another benefit that comes with hiring a tax attorney is centered on knowing when to file and pay your taxes. You might owe them on a quarterly basis or the IRS may allow you to pay them annually. Your attorney will have knowledge on what the deadlines for filing are and may assist you in getting an extension if needed. 

Avoiding Penalties and Interests 

A tax filing extension for your business can be vital to get if you want to avoid costly IRS penalties and interests on your tax debt. Failing to file your tax returns on time or leaving out critical information on your tax returns could impede the processing of your taxes. You could in turn also incur fines, penalties, and extra interest on what you already owe to the IRS. 

When you have an IRS tax attorney, you get the help you need with filing on time and submitting all of the necessary details needed to prove your income and expenses. Your attorney can also act as your link between the IRS and you. He or she can respond to letters and phone calls from the IRS and take care of any tax disputes that might arise and potentially lead to you being fined or penalized. 

Determining the Best Type of Business Structure 

If you have a business which is relatively new or is being reorganized, you might need to have it structured to your own benefit. Deciding what business structure to use may get you confused. You may not even know what your options are. 

However, your tax attorney will know what business structures are available to you and what one works in your advantage. The most common business structure choices include: 

  • LLC
  • Corporation
  • Multiple-owner business
  • Single-owner business

Whichever one that you decide to choose for your business should reflect its function and design. It also should strategically work to your advantage when it comes to filing and paying your business’s taxes. 

Handling Business Contracts 

An IRS tax attorney can be an indispensable ally when it comes to handling business contracts. For example, if you want to discuss new contracts for your company, you might need your tax attorney to evaluate them to make sure you avoid taking on undue expenses. 

Also, if you plan to renew contracts for your business, you also might want your tax attorney to take a careful evaluation before you sign them. His or her aid can help you avoid taking on a tax burden you cannot afford and cannot run away from because of the legalities found in the contracts. 

The help of the attorney can also come in useful if you plan on acquiring or selling a business. These transactions unavoidably come with tax implications for you as the business owner. Your attorney can make sure your tax burden as minimal as possible and that you avoid taking on a tax debt that legally belongs to the other party in the transaction. 

Tax Deductions and Exemptions 

As a business owner, you have the right to claim tax reductions and exclusions to which you are legally entitled. Even so, you might not be certain of what they are and how you can claim them on your tax return. 

Your tax lawyer can recognize what exemptions and deductions you can claim and make sure they are effectively harnessed in a lawful way on your return. Some of the expenses you can remove from your taxes include: 

  • Depreciation
  • Equipment purchases
  • Home office deductions
  • Company-related travel
  • Employee benefits

Your tax attorney similarly will ensure you do not claim expenses like: 

  • Traffic tickets
  • Home telephone line
  • Costs of business clothing unless it is a required uniform
  • Personal expenses
  • Expenses used to determine the cost of goods sold

These deductions are not legal for you to claim. You can make sure they are exempted from your returns by hiring a tax attorney to assist you. 

Knowledge of the Latest Tax Codes 

A tax attorney ought to know the latest tax laws as they are approved and enacted. Keeping all the tax laws in your own mind can be difficult. Lay people like you normally do not pay a lot of attention to tax laws as they are fashioned and signed. 

However, your attorney will know what these codes are and how they relate to your own tax filing circumstance. He or she can use those laws to your benefit and help you find legal faults that could reduce your tax burden. You do not have to read up on all the tax codes yourself. 

Filing your business’s taxes can be a duty for which you are ill-suited. You do not have to delay or avoid filing and paying the taxes your business owes, however. You can get them filed in a well-timed manner and use the tax codes to your benefit by hiring a tax attorney to stand for you and your business.