When handling a business, the time may come where you will encounter confusing tax questions that have legal ramifications. During that scenario, you will need the help of a trustworthy tax attorney or a certified public accountant. Both professions can help you out, but they do have slight variations in what they can help you with and do for you.
Why Hire a Certified Public Accountant?
The reason for hiring an accountant is because you need someone to help manage your business accounts. CPAs can help review your business numbers and books on a periodic basis. Helping you with tracking your cash flow and checking for discrepancies are important tasks that will help your business stay afloat because it means that losses can be minimized.
On top of that, they will help you prepare all the essential federal, state, and local tax returns that your business must submit to comply with the requirements of the law. Having this prepared by a certified public accountant means that you save yourself the hassle of making mistakes because this field is not your forte. More importantly, should any issues arise with your returns, your CPA can directly respond and deal with the problems raised by the tax bureau.
Why Hire a Tax Attorney?
The reason for hiring a tax attorney comes with an ominous feeling to it because it implies that you do not merely need help with numbers, you are also facing legal issues and need help in facing the law. Usually, you hire a lawyer for overseeing contracts, dealing with zoning details, helping with trademarks and copyright, or providing assistance during incorporation. But when issues with your taxes arise that your accountant can no longer handle, it is time to seek the advice of a tax attorney.
They have the ability to handle certain things that accounts cannot provide. They will help represent you in court. These are lawyers who have studied and specialized in the very complex and technical field of taxation law.
They are the best people to call when you need someone to handle the confusing legal issues associated with your tax situation. A tax attorney can easily step in when you encounter problems, but consulting them in advance can also help you mitigate potential problems. Making the right decisions is critical in helping you advance your business and your personal life.
What Specific Scenarios Would Warrant the Help of a Tax Attorney?
Nobody really likes dealing with the tax bureau. What’s even worse is when you get a letter from them because they make you feel like the biggest criminal. The tax bureau is not only concerned about individual tax returns, but they also deal with estates and business taxes. Apart from dealing with them, you might need the help of a tax attorney when you are faced with this kind of situation. Read on below:
- You already foresee owning a large taxable estate the moment you die
They can help you draft your last will and testament so that everything is seamless and there will be no fights amongst your heirs should the time come that you will leave this planet. Tax attorneys can also help you with drafting your trust, which you can choose to make into a revocable or irrevocable trust, like a QPRT, which cannot be undone or changed on a whim by anyone after your demise.
One of the things your heirs will have to deal with in case you die is paying a large estate tax that will eat up a lot of money. Your heirs can pay up to forty percent of that balance that’s coming from the assets you left behind. A tax lawyer can help minimize this exorbitant estate tax rate by helping you craft you estate-planning strategies. They can find ways to help you stay below the exemption threshold in order for you to avoid giving a huge chunk of your estate to taxes.
- You are starting or growing your business
You can be a new business owner or one who is in the middle of expanding your business. Any business set up you choose will have its corresponding tax guidelines. Whether you are a sole proprietorship, a partnership, or a corporation, you need legal counsel to help you iron out the nitty-gritty of what your obligations are to the tax bureau.
In addition, if you happen to be a small business looking to incorporate, you will definitely need a lawyer to help you with the articles of incorporation, along with filing the necessary documents to help turn your sole proprietorship or partnership into a full-fledged corporation. They can also help you with setting up your copyrights and trademarks to protect your business.
- You engage in international business transactions
Ordinary domestic transactions are already complicated. If you have business dealings overseas, then you will need legal advice more than ever. These lawyers can come review contracts to ensure that you are protected. You can also choose to hire a local tax lawyer in the foreign country to ensure that all the tax details regarding your business are on point.
- You plan to counter file against the tax bureau charges against you
If you are under criminal investigation by the tax bureau, you are under stressful circumstances. Seeking the help of a tax attorney will help ease your burden. It may not totally eradicate the stress, but having this professional behind you is the first step in the right direction. You need them if you want to seek an independent review of your tax case in the courtroom.
