As a small business owner, should you hire a tax lawyer? You may feel like the answer depends on the complexity of your tax filing, or the size of your business.
But because the IRS makes almost no room for errors, the benefits of hiring a tax attorney will almost certainly outweigh the costs. Here are five reasons to hire a tax lawyer for your small business needs:
Time is money. The Internal Revenue Code and Treasury Regulations are voluminous -- together they fill more than 1,700 pages of legal fine print. A tax lawyer can help sift through the code, saving you time that could be better spent in the day-to-day workings of your business.
State and local taxes. These can get tricky, as different obligations are triggered by different activities and where they take place. For example, a company that's based in one city, but conducts most sales outside city limits, may face complex tax calculations that can be more adroitly handled by a tax attorney.
Employee taxes. Who's an employee, and who's an independent contractor? If you're in business by yourself, are you an employer, an employee, or both? Tax consequences differ, depending on how a worker is classified. A tax attorney is likely well-versed in the important distinctions.
Don't miss out on deductions. Travel, new equipment, and even coffee and donuts may be deductible business expenses, but each provision comes with very specific requirements. A tax attorney can help optimize ways to offset your income.
"I didn't know" is not an excuse. Tax laws change frequently, as do IRS interpretations of the tax code. Not knowing these laws and regulations is no excuse to not follow them. Hiring a tax lawyer can be your insurance against ignorance, and keep your small business far away from a dreaded audit. Are you ready to chat up a tax attorney? Here is a path an easy way to find an attorney near you.
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