There’s an old adage that says only two things are certain in life: death and taxes. If you own a business, not paying taxes can lead to serious tax problems.
Failure to pay taxes or paying less than you owe could lead to many a tax problem down the road, especially if the IRS does an audit. Failure to pay taxes on time could lead to a failure-to-file penalty (5% of the total amount in taxes due and increases in percentage every month taxes aren’t filed) or significant amounts being pulled out in back taxes.
So what can you do as a business owner? For starters, it’s important to pay your taxes on time, but if you suspect you may have a tax problem it may best to get the help of an IRS tax attorney. What can a tax attorney do for you? Here are five benefits of using a tax attorney:
- Knowledge: Let’s face it, tax code is weighty and complicated and the average taxpayer and average American businessman or businesswomen doesn’t have time to read or understand it all. Making sense of the tax code and avoiding a tax problem requires the skill and finesse of an experienced tax attorney, who knows tax code. This way he or she can take the time to read the applicable tax code and apply it to your specific tax problem.
- Protection: As a business owner, the last thing you want is to be hassled or intimidated by the IRS if you’re dealing with a serious tax problem. That being said, most IRS agents are professional and courteous when talking with business owners and taxpayers. Nonetheless, with a tax professional in your corner, you’ll be protected and have experienced representation in any legal proceedings and plenty of tax help.
- Intermediary: For business owners and taxpayers, it can be a little intimidating talking with the IRS, especially if you’re not sure what sort of information to give them. Rather than risk giving away sensitive information, you can have a lawyer talk to the IRS for you. Your lawyer will know exactly what information to give the IRS and will make sure that all information give is accurate and up-to-date.
- Tax filing: Another benefit of tax lawyers is that they can help you file returns. They can ensure that your taxes are filed on-time and with up-to-date information. Your attorney can also help you when it comes to filing late returns and can help you get tax extensions if you need them.
- Asset protection: An IRS tax advisor will also know what steps to take to protect your assets as well as your income. For folks and businesses with tax problems, the IRS typically puts a lien on your assets and garnishes your wages. Fortunately, a lawyer can safeguard your assets by reaching an agreement with the IRS, restructuring your debt or arranging to have you pay off debt by other means such as a credit card or a money order.
Ultimately, all of the options above are going to help protect you and your business assets. The IRS has the right to collect what it’s owed, but with a tax lawyer you gain the power to negotiate and figure out a settlement that works for all parties concerned.