The best people to consult with are former IRS tax attorneys, as they are intimately familiar with tax laws and factors that could get your business audited. Learning how to do your books correctly from the get go is one of the primary reasons for consulting with a tax attorney, but there are others as well.
The most frequent occasion in which an individual or small business owner needs to consult with a tax attorney is when they’ve found themselves on the receiving end of a tax bill.”When and Why Would You Need an IRS Tax Attorney?” on defensetax.com outlines the reasons why consulting an IRS tax specialist is important in this situation: “When you want to save yourself and your business from IRS penalties, interest and possible criminal actions (including jail terms), it is best to hire an expert in tax representation, who will be able to handle your situation better. The tax lawyer, CPA or the IRS licensed enrolled agent understands everything about the tax laws and they know what to do in different situations. They have the expertise to devise a specific plan of action for your case and follow it for implementation. Tax representatives are trained, licensed and experienced to handle the technicalities involved in the tax resolution and settlement process.”
Expanding your business is great, but once you cross borders, the tax situation can be confusing. Upcounsel.com’s piece, “Should You Hire a Tax Attorney or a CPA?“, addresses this issue: “While accountants and CPAs are more focused on managing your finances and filing tax returns, a tax attorney deals with the legal aspects of financial proceedings including payroll taxation issues, international business tax laws, filing a lawsuit against the IRS or representing you if the IRS files a lawsuit against you, IRS criminal investigations, or tax fraud investigations.” While your CPA can help you with many financial aspects of your business, a former IRS tax attorney knows what to watch out for, so they can help you avoid any tax missteps.
Tax laws change every year, and when you are a small business owner, it’s tough to keep track of all of the ones that affect your business. In order to avoid making a costly mistake, it’s best to hire a professional up front. They are also helpful if you find yourself in trouble with the IRS.