If you’re a business person, one of your top priorities is ensuring you’re compliant with tax laws. Unfortunately, this can be complex and confusing. The California State Income Tax, for example, is based on the Federal Income Tax. Still, there are also several California-specific laws that businesses need to be aware of.
It is where hiring an expert lawyer can be extremely beneficial.
A good lawyer can help you navigate the complex code and ensure you take advantage of all the deductions and credits available. This article will show the five benefits of hiring a tax attorney for your business.
- They Can Help One Navigate the Complex Tax Code
These codes are always changing, and it can be difficult to keep up with the latest laws. However, an attorney can help you make sense of the code and comply with the law.
Some codes include:
- The Tax Cuts and Jobs Act of 2017
- The Coronavirus Aid, Relief, and Economic Security (CARES) Act
Lawyers can also help you take advantage of tax breaks and deductions for which you may be eligible. Deductions are often complex, and they can help you maximize your savings.
An attorney can also help a person with proper financial planning. For example, they can advise on structuring the business to minimize your liability. They could also help you plan for upcoming changes in the code that could impact your business.
They can also help you take advantage of any incentives available to the business. It can save more money in the long run.
- They Can Help Reduce the Liability
Potential penalties and interest can be assessed on taxpayers for failure to comply with laws. An expert lawyer can help navigate the complex code and reduce your liability.
Some common areas where a lawyer can assist include:
* Filing delinquent returns
* Negotiating with the IRS for a payment plan or Offer in Compromise
* Filing an amended return
When it comes to handling a business, it is important to have someone by your side who knows the complications of the code. A tax advocate can always be a valuable person to your team.
- They Can Act as a Representative before the IRS
The IRS or the state tax authorities can be intimidating. However, an expert advocate will know how to deal with them and represent the client in the best way possible.
They can also help with audits and appeals. For example, suppose you are being audited or have received a notice of deficiency. In that case, these legal practitioners can help you navigate the process and ensure that your rights are protected.
- They Can Keep One Up-to-Date on Any Changes in the Tax Code That Could Impact the Business
Lastly, a brilliant tax attorney will always keep one updated on any changes in the code that could impact the business. They’ll make sure that their clients know about any new deductions or credits that could save money, and they’ll let them know about any new laws or regulations that could affect the legal operations.
Whether you run a business or an individual, the benefits of hiring a specialized lawyer are clear. These counsels can save time, money, and stress by ensuring that your taxes are filed correctly.