Why Business Needs Tax Representation

When people ask the question “Do I need tax representation when filing my personal taxes?” the answer is a resounding yes. The IRS (Internal Revenue Service) keeps records of your personal and business finances in its enormous Tax Protection Registry. Any time you owe taxes or financial penalty charges, they keep tabs on that account using the Tax Protection Registry. They can also contact you to determine whether you need to make any adjustments to your tax returns or ask you questions regarding the status of your tax liabilities.


a complete representation of all your tax liabilities

The Tax Protectors are not intended to be a complete representation of all your tax liabilities. They are simply a tool for communication with the IRS. The more detailed information you can provide on your business finances, the more accurately you will be able to assess your tax liability. Without an accurate assessment of your business’s tax liability, the IRS can elect to place restrictions on some or all of your business profits. They can also elect to reduce the tax benefits you receive from tax deductions or interest on your accounts. For small business owners, it is extremely important that their tax liability is evaluated by an experienced professional before any action is taken against them.


represent you if the Internal Revenue Service decides to audit your business

Not only do you need a tax expert to represent you in the process of filing your return, but you also need someone to represent you if the Internal Revenue Service decides to audit your business. Without an experienced individual representing your business, the IRS can simply deny your request for an extension of time to pay your tax liability. If they do so, then you are required to repay all applicable penalties and interests, as well as any other costs incurred by pursuing the audit. It is very important that you retain someone with solid experience representing your business’s interests when dealing with the IRS.


knowledgeable enough to advise you of your tax-deductible expenses

A good attorney representing your business should also be knowledgeable enough to advise you of your tax-deductible expenses. In most cases, it is unnecessary to include a business allowance for taxes incurred on supplies used in the production of your company’s goods and services. Furthermore, many tax filers do not itemize their deductions, so they end up being audited for the incorrect items. By retaining a tax specialist, you can ensure that you are correctly claiming all of your deductions and paying the appropriate amount to claim on your personal income tax return. You can also receive assistance in calculating your business tax liability and obtain extensions that may reduce your liability significantly if you are having trouble determining which tax bracket you fall in.


ensure that you receive the best tax advice and are not subject to double taxation

Business owners face special tax burdens when they incorporate as a sole proprietorship, pass through divisions set up by the corporate veil, or hold themselves out as S corporations or partnerships. These differences in taxation between a sole proprietorship and a corporation make it extremely important that you have the assistance of a tax professional who is well-versed in local and federal tax law. This type of specialized legal representation will ensure that you receive the best tax advice and are not subject to double taxation. Having a professional represent you during these difficult times is essential for your business’s success.


retain a CPA to represent you on your business tax returns

Whether you work alone or as part of a large corporation, there are many reasons why you need to retain a CPA to represent you on your business tax returns. For example, not understanding or knowing the intricacies of the various tax codes can result in huge tax bills, and incorrectly filed returns can result in penalties and interest. In addition, improperly prepared tax returns can result in your corporation being shut down entirely. In order to protect your business and your assets, it is crucial that you understand the ins and outs of the tax code and learn as much about tax practices as possible. A qualified CPA can help you learn what deductions are available to you, how to take them, and whether any of them apply to your business. Additionally, a qualified professional will be able to provide you with support during the complex audits that occur within the Internal Revenue Service.

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