Year
after year many business owners make an appointment with a Certified
Public Accountant (CPA) to handle their annual tax return filing. While
CPA's are an excellent resource, there may be times when you need a
little more expertise. That is when you need to look into retaining a corporate tax attorney.
Where
a CPA has expertise on what forms to fill out and how to complete them,
a corporate tax attorney has a much more in depth knowledge of tax laws.
While
it is a good idea to have a relationship with a corporate tax attorney,
some businesses never need to use their services. However, there are
certain times when you will need their expertise to guide you through
some of the trickier legal issues with your businesses taxes.
Business Startup
One
thing that can complicate your first years in business is having your
tax structure set up improperly. Not only can correcting the problem be
a bit of a nightmare, it can also be a very expensive problem to
fix. If you don't catch the problem soon enough you may have to
pay fines and penalties to the Internal Revenue Service if you underpay
what you owe in taxes.
Under Investigation by the IRS
If
you are ever under investigation by the IRS, you should immediately get
in touch with your corporate tax attorney. Even if you are sure that
everything is legit, the sooner you can get your attorney involved, the
sooner the issue will be resolved and put to rest.
Make
sure you have all of your supporting documentation ready, and bring
your corporate tax attorney in to go over everything. They are trained
to work with the IRS, and many times can work to bring a quick
resolution to any problems.
You Have Committed Tax Fraud
If
you are being accused of tax fraud by the IRS, you will definitely want
to have a corporate tax attorney by your side. Even if it was a mistake
or an oversight, as far as the law is concerned fraud is fraud. A good
attorney can work to resolve any complaints, and they can argue in your
favor to have any penalties minimized, or possibly even removed
completely.
You Cannot Pay Your Taxes
In
tough economic times you may find yourself in a situation where you
don't have the money to pay your corporate taxes. While the IRS does
have some flexibility in their payment schedules, you may not be able
to meet their deadlines. Having a tax relief attorney on your side can
help you by working out a schedule that you can afford while still
having the resources to operate your business.
One
thing you need to remember is that a corporate tax attorney is not the
same as a business attorney. A business attorney is trained to handle
general business issues. They work with contracts, corporate structure,
and business relationship issues. Corporate tax attorneys are trained
specifically to handle business tax related issues.
There
are other advantages you can get from a corporate tax attorney that you
don't have with a CPA. These advantages include attorney-client
privilege, in-depth knowledge of tax laws, and the ability to negotiate
on your behalf.
Attorney-Client Privilege
Attorney-client
Privilege is a legal principle that says any conversation you have with
your attorney is privileged information. That means that your attorney
can't share any of your conversations. This protection even applies
when dealing with the IRS.
While there is limited protection
when in a professional relationship with a CPA, that confidentiality
does not apply when dealing in legal matters, or with the IRS. If you
are ever called into court, your CPA could be required to testify
against you.
In-Depth Knowledge
As
was mentioned earlier, attorneys are trained specifically to deal with
tax laws. They can give you a level of advice you cannot get with your
CPA. By knowing the law, they can help you navigate many
different legal issues. This can help you to minimize the fees or
penalties you may be facing if there were errors made with a tax filing.
Ability to Negotiate
Part
of an attorney's training is in the art of negotiation. That is
something that is not typically a part of a CPA's education. When you
combine that with the corporate tax attorney's knowledge of the law, it
can be quite useful in negotiating a settlement in your favor.
CPAs
serve a vital role in helping you keep your business financially sound,
but there are times when you need to turn to a corporate tax attorney.
They can help you to navigate through the dangers of corporate taxes.
For more information on corporate tax attorneys, check out http://www.taxattorneyguru.com/choosing-the-right-tax-attorney
