Avoid Tax Pitfalls

Tax Strategies for Business

If you own a small or mid-sized business, it is important to understand your tax liabilities and exposure. Because of how they operate, businesses face a greater risk of IRS audits than private individuals who do not run a business. By teaming with a seasoned tax attorney, businesses can preempt costly mistakes and set forth a business strategy that helps prevent future mistakes.  However, for the business owner who finds themselves embroiled in a tax situation, a tax attorney can help the owner navigate any potential pitfalls and dangers.

When running a business, owners should prepare and avoid minor tax-related mistakes that could result in additional taxes, interest or penalties. Faulty bookkeeping and failing to keep accurate records of accounts may trigger an audit, which can be both expensive and time-consuming. Therefore, it's best to consult a tax attorney before you face potential legal issues.

Common Tax Issues Small Businesses May Face

  • Writing off too many tax deductions—One of the most common tax problems is having too many tax deductions. When businesses write off expenses that the IRS does not consider to be deductible, such as doing business while on a family vacation, they can be fined and penalized unless they can prove the deductions were valid.
  • Not realizing the expenses that are deductible—On the other hand, sometimes business professionals pay for business expenses out of their own pockets when they could be using their business accounts. As a result, they lose out on receiving tax deductions that could save them money.
  • Not abiding by business regulations and tax codes—Because tax codes and regulations tend to change each year it can be easy to make mistakes when you do not have a tax attorney who is up to date on all the most current business regulations and tax codes.

Our Tax Support Services Include:

  • Preparing tax forms—For most businesses, having a professional tax attorney prepare their tax forms is a huge benefit as this job can consume a lot of time. Consider how a tax attorney can spot tax deductions you may have overlooked and possibly recognize red flags that could become problematic.
  • Reviewing business contracts—A tax attorney can also counsel business owners on the tax effects of certain business transactions and advise on potential tax deductions and expenses.
  • Navigating confusing IRS forms—There are approximately 2,000 IRS forms that are usually incomprehensible to the average layperson.  A well-versed tax attorney can help decipher these documents for your business.
  • Representing business in an audit or audit appeal—Tax attorneys can represent a business or individual in court if the IRS pursues charges.
  • Evaluating the best form of bankruptcy for your specific needs—Unfortunately, businesses may face insurmountable financial problems. When this occurs, a highly trained and experienced tax attorney can help a business navigate the processand explain the results of the potential outcoumes both during and after bankruptcy.

Contact Us

Working with an attorney you trust will be critical to the successful resolution of your taxation issues. The experienced tax attorneys at East Lake Law Firm are well-positioned to support you during this difficult time. Contact us now for a consultation.