For individuals and businesses, taxation should be accurate and transparent. You can read more about why you need taxes in this link here. There should never be any room for errors. If the numbers are complicated, and there are many issues, one may face additional penalties and interests. These are just some of the consequences of entrepreneurs and taxpayers’ failure to write actual transactions or make a mistake on their balance sheets and irs offer in compromise.
Some shop owners dread receiving letters for tax audits. For many who didn’t keep accurate records of their transactions, the whole process can be messy. You may want to call for tax attorneys’ help if this is the case with you. There are four situations where you may need the help of tax attorneys. These are the following.
4 Reasons to Call an Expert Tax Attorney
- Receive an Audit Request from the IRS
At the beginning of your business, you may receive audit requests. If you are being audited, the Internal Revenue System will conduct an initial interview, and they will ask a lot of questions about what you do. Your answer to their inquiries will determine if they will proceed to the next step.
Some of the time, half of the referrals that are under investigation under the criminal division are from the ones who underwent initial interviews. When you are one of them, hire a lawyer right away. An attorney will ensure that you are saying the right words. You have the peace of mind that your welfare and rights are not being overstepped.
- You Were Accused of Tax Frauds
Hiring an attorney is vital when the IRS accuses you of tax fraud. You should never ignore demand letters since your business, freedom, property, and entire life are on the line. You may be facing criminal charges, and you would want to fix any discrepancies immediately. A qualified attorney can represent you in the courts and provide you with guidance regarding legal matters.
If you are working with a lawyer, you know that you are protected. This means that everything you say to your trusted confidante will be just between you two, and this is something that a client-attorney privilege can offer you. Whenever something you say can be used in your favor in court, your lawyer will tell you so. This contrasts when you confide with the people from the IRS or CPAs where they might even testify against you if it’s advantageous on their part.
- You Need Someone to Represent You to the IRS
You may fear that you will be saying the wrong words if you talk to the IRS. If this is the case, you may need an attorney who knows what to say and prepares the paperwork for you. After you involve tax attorneys in Atlanta, GA, in the process, you will never even have to meet with the IRS’ taxman. Your involvement with the whole process will be minimal.
If it’s proven that you may have unpaid taxes due to the IRS, your attorney will know how to get the lowest settlement possible. He can secure an offer in compromise (OIC) or an instalment agreement that will prevent you from losing your properties if you can’t pay the tax. Obtaining an OIC is a long and tedious process that you want to leave in the experts’ hands.
Hiring an attorney has a lot of advantages than you can imagine. You can benefit from their knowledge, experience, and negotiation skills whenever you put your business on their hands. They will always settle for a resolution that is favorable for you.
- Issues with a Sizable Tax Debts that You May Owe
You may have received a letter from the IRS saying that you owed a sizable amount of debt. If this is the case, then you may want to double-check first if this is true. This is because the IRS is known to make mistakes because of human error or computer bugs. There are also times when the letter is a fraud, and the people behind them are not connected to the IRS or any government institution at all.
So, when the taxman says that you have a sizable debt, the first thing that you need to do is to calm down and call a lawyer. You should not take just anybody’s word that you have issues with the IRS. The attorneys will take the matter in their hands, and they can save you hundreds and thousands of dollars in additional payments.
You may want to consult your accountant first when you receive these kinds of letters. However, in most cases, CPAs may not be familiar with the existing tax laws in Atlanta, Georgia, or their knowledge is not as in-depth as that of a tax attorney. You may want to get someone who specialized in the area you’re having issues with to prevent significant expenses and tax liabilities.
Reasons You Need a Business Tax Attorney to Help You
You don’t just need an expert tax attorney in Georgia when you get an IRS letter. You can even add them as one of your advisors that can prepare your documents. They are valuable to you especially when you are just starting, and you need their expertise in legal matters. Here are other legal matters that are faced by businesses: http://www.businessdictionary.com/article/538/common-legal-issues-faced-by-businesses/.
When you get access to their advice, you know that you are doing the right things. They can help you in significant decisions that will take your business further into the next levels. Other business owners call their attorneys because they want more of the following:
- Time – Your time is precious, and when you are just starting a business, you should focus on growing it first. A tax attorney will help you prepare the things you need if the IRS decides to audit you. Knowing the ins and outs of the tax laws are complicated enough. A lawyer can simplify the why, when, and how you will need the documents when an audit occurs and you don’t need months of studying just to master this specific area of your business.
- Immediate Action – Keeping the records for the transactions and knowing tax obligations are complicated things. Some owners say everything can take months to learn. You should never attempt to learn them from scratch instead of getting a pro to learn the ropes quickly. They can take immediate action whenever the occasion arises.
New businesses need to determine their inventory costs, start-up capital, and employee needs. Even if the costs include just the business cards or only a single employee working for you, you still need to pay the correct taxes. The IRS and other agencies are very interested in what you do, and you should never give them the chance to see loopholes in your books.
- Fiscal or Tax Years – Businesses have fiscal years, and this is something that you can decide or the government will. The decision should comply with the government’s requirements, or else you will get into trouble. With a lawyer beside you, you will be guided on how to prepare the papers, and you are assured that you can reach deadlines without a hitch.
- Income from Businesses – Your income can come in many forms. The IRS can refer to this as the gross income, which includes barters, properties, services, goods, and any income generated from sales. You need to make sure that you are paying the right taxes in your revenues.
Otherwise, the taxman will come knocking on your door one of these days and say that you are not paying enough. If you have an attorney specializing in the calculation of sales and income from goods, you can answer the IRS’s questions confidently. You know that you are doing everything right.
A Final Word
The world of business is full of people who are trying to take your earnings away from you. What you can do to be successful while keeping the money due to you is to get someone with the knowledge about taxes in Georgia.
They will be the ones who can tell you about the right amount that you need to pay every month, and they will check your books from time to time. They will ensure that you are safe from the taxman, and they can save you lots of money and time in the process.