You’ve probably heard that hiring a tax attorney can be expensive. But what if you don’t have any other option? It’s important to know when it is worth the money to hire an experienced tax law professional. Here are some reasons why your business might need Los Angeles tax attorney this year.
Tax Situation Has Become More Complicated
Today, tax laws are so complex that most people have trouble understanding it. Because of the complexity, many taxpayers are making mistakes that could cause them to be audited by the IRS or face other serious consequences. So if you’re filing fairly straightforward taxes, the chances are good that you don’t need to consult an Los Angeles tax attorney. But if you do have a complicated situation, there could be severe consequences if you make a mistake or overlook anything.
If the IRS Is Auditing You
An audit is when the IRS adjusts your tax return and may disallow some of your deductions and credits. The IRS may ask for documentation to support the deductions and credits you claimed on your return. If you don’t have this documentation, they will disallow some of your deductions or credits. It is crucial that if any part of your return has been selected for audit, all documents supporting your claims be retained to substantiate them in case of an audit.
During a Litigation
If you are involved in any litigation, whether it is a divorce, business litigation or personal injury case, either as the plaintiff or defendant, you may be entitled to certain tax deductions and credits if they meet specific qualifications. If your attorney doesn’t ask about your taxes during pretrial negotiations, you may end up forfeiting these deductions or credits.
You Owe Back Taxes
If you are in the process of paying off back taxes, this can cause problems with your credit score, and it may not be easy to obtain loans for anything else. That is why one of the first things that an attorney will do when negotiating with the IRS is to make sure that your back tax payments will be reported as made.
When You’re Starting a Business
Starting a business can be very rewarding, but it also comes with specific tax requirements and taxes that you must pay as an employer. This is something that some people don’t discover until they’re just starting their business and it’s too late. If you hire a tax attorney at this point, they can help create a business plan that minimizes your tax liability.
In every situation where you need to file a return with the IRS or meet any requirements from them, you need an experienced Los Angeles tax attorney on your side to help you. If you need help, feel free to contact Tax Legal Pros today.