Melissa is a mother of 2, lives in Utah, and writes for a multitude of sites. She is currently the EIC of HarcourtHealth.com and writes about health, wellness, and business topics.

When there is need to be familiar with basic tax knowledge, a majority of American business owners know literally next to nothing. And if you find yourself in this situation and are trying to run your business, you are definitely setting yourself for an impending disaster. A team of tax experts can aid your business to run smoothly and also protect you from unwanted legal issues in the future.

Who is a Tax Attorney?

In any business, there are attorneys and accountants. Both professionals are there to help you when your business needs them most, but the word attorney implies not only fighting the numbers but also the law. And to some extent, all this is true. Tax attorneys are capable of handling things that your accountant might not be in a position to control. Tax attorneys are a special group of lawyers who have a great specialty in the technical and sophisticated area of tax law. They are ideal for handling advanced, technical, and legal issues associated with a business’s tax situation. Tax attorneys will often swing into action when you encounter a problem, but early consultation with one can help you to avoid problems.

There are numerous reasons why you need to hire a tax attorney for your business, and they include:

Comprehensive Tax Code Knowledge

Are you ready to go over the current United States tax code which has more than 2,000 pages of written law? And if you happen to read it, would you understand what the law says and how you could apply it to your business? Well, the odds are slim for you, and this is where the tax attorney should come in. Tax attorneys are familiar with all the ins and outs of the law and will ensure your business has adhered to all the current federal and state guidelines. You should never put your business at risk just because you are looking to save a few hundred dollars. You should consider hiring an attorney to ensure things are done appropriately.

Help Filing Your Annual Returns

Arguably one of the most significant benefits you accrue from hiring a tax attorney is that you will get all the assistance you need with regards to filing your annual returns. This is usually particularly helpful for service type of businesses and non-profit companies which often have complex filing processes. A tax attorney can also help with late returns, amended returns as well as extensions to make sure that any mistakes are addressed instantly and efficiently. Working with an attorney when filing your returns, you are almost guaranteed that everything will be done perfectly. There will be no more guessing, manipulating figures or hoping for the best outcome.

Act as an Intermediary

Tax attorneys also play a crucial role in your business’s daily operations, mainly when the business needs to communicate with third parties. For instance, if your business needs to be audited or get in touch with the IRS for a specific reason, your tax attorney can work as an intermediary and communicate on behalf of your business. It could be intimidating for a business owner to do all this on his own. Tax attorneys, however, know what type of questions they need to ask as well as the information they need to provide to get all your business issues sorted out in the shortest time possible.

Asset and Payment Protection

Hiring a tax attorney for your business is an excellent way to ensure that all your assets, as well as income, are protected. Some of the means through which attorneys can facilitate all this include:

  • Setting up all the necessary installment agreements
  • Arranging the most efficient means for you to pay all your outstanding debts.
  • Settling your debts with an Offer in Compromise.
  • Placing your business debts in a Currently Not Collectible state.

All the above are methods employed by your tax attorney which can prevent all your wages from being garnished or assets being seized.

When Would You Need a Tax Attorney?

Ideally, you should always hire a tax attorney before things in your business go wrong. However, there are some specific instances in which you would need a legal tax professional by your side. And while the IRS usually has its eyes on a lot of businesses, only a few of them involve individual tax returns. Here are some situations in which you might need the help of a tax attorney.

  1. When You Are Starting a Business

If you plan to start your own business, you will probably have questions regarding the kind of business entity you should set up, whether to incorporate or whether you should go into it as a sole proprietor. Whatever business setup you decide to go for, there will undoubtedly be some tax ramifications. A tax legal counsel can advise you on the structure as well as tax treatment of your business, including non-tax issues which you would have probably not considered.

  1. When the IRS is On Your Neck

If you are planning to file a lawsuit against the Internal Revenue Service, you are under a criminal investigation by this body or would like to seek an independent review of your business-related case before a federal court; you will need the services of a tax attorney. You will need someone who is adept with the courtroom as well as all aspects regarding business tax laws. And while some non-attorneys can offer a good representation in court, it would be best if you chose an individual who has a good grasp of the law. This is particularly the case if you have committed tax fraud, like claiming credits or deductions which you were never entitled to.

  1. If You Engage in International Business

If you often engage in international business, you will probably find yourself in need of assistance with tax treatments, contracts as well as other legal issues. In such an instance, a tax attorney would come in handy for your business.

You should always know that tax attorneys are not equal, some will have more knowledge than others such as https://deanhineslawyer.com/tax-attorney-dayton-ohio/or specialize in a specific area of business tax law. As such, you will need to conduct thorough vetting before settling on the most qualified individual.