Why Tax Attorneys Are Necessary For Small Business Owners Who Do Their Own Taxes

20 January 2020
 Categories: Law, Blog

Opening up a small business can be a liberating situation that may bring a person a lot of joy and financial independence. However, it can also be a serious issue if they don't take the time to do their taxes properly and make a small mistake. For example, they may send in too little money and end up getting the IRS coming after them. In this situation, a tax attorney is necessary.

Minor Mistakes Can Cause Serious Problems

When a small business owner does their own taxes, they take a lot of risk with their financial situation. If they can do their taxes smoothly and without a problem, they will be able to save themselves some money. However, taxes can be very difficult for some to understand and a business owner could fill out their forms improperly, forget to carry some numbers and end up calculating an incorrect small payment.

Though this type of mistake might seem like it would be hard to make, many small business owners who do their own taxes may run into it. Simply put, they don't pay enough attention to the numbers on their returns and they send in a fraction of the cash that they should send to the IRS. And when this happens, they may end up getting into trouble without the help of a tax attorney.

How a Tax Attorney Can Help

Those worried about a minor math problem causing a serious legal issue should talk to a tax attorney right away. These individuals fully understand how these mistakes can happen and will give a person an insight into how to manage it. For example, they can talk to the IRS about the mistake, sort out where it originated, and come up with a payment plan that satisfies everybody.

And if a criminal case is opened, the attorney can defend the small business owner who didn't mean to pay less than they should have at tax time. For example, they can showcase the evidence that indicates the owner was poorly planned to do their taxes or that they honestly made a mistake. If the owner is attempting to work with the IRS during this period, they can show a lot of goodwill to the court.

Therefore, it is critical to talk to a tax attorney before a problem like this ever happens. These professionals fully understand all elements of tax law and will take active steps to ensure that everybody is satisfied. In this way, they can ensure that nothing goes wrong with a small business and its taxes and keep them out of jail in a big way.