When to Hire a Tax Attorney in a business

It’s a tough question, really. With over 75,000 pages (of which changes are made each year), the US Tax Code is among the dreaded laws by the Americans. And it’s not because they don’t want to pay their taxes. It’s just that the filing process can be strenuous and stressful.
Do you owe money to the IRS? Will you receive a refund? Do you work at a company or do you own a business? Did you just get married or have a child this year? Each taxpayer has unique circumstances. Thus, it is very important to know when you can prepare your taxes on your own or hire an expert.
When to DIY Your Tax Return
You don’t have to master the US Tax Code or be an accountant to be able to prepare your taxes. There are several instances when you can prepare your tax return on your own and save money.
 
You are an employee
If you are an employee and get a W-2 stub at the end of the year, you are well off preparing your own taxes. With the W-2, it means that your taxes have been taken out of your paycheck. Thus, you just have to file a pretty straightforward form using a basic tax software or the one provided by IRS website.
If you have recently married, had a child, moved, or switched career, if your income is reported in W-2, you won’t have issues filing your own taxes. In most instances, personal loans shouldn’t affect your tax situation. Even if you made online cash advance for taxes, paid interest on your credit card balances, or financed your new car this year, it does not reduce your tax liability, unless you used your credit card to finance business expenses, in addition to your personal expenses.
You have standard deductions
If you don’t have to itemize deductions, you can also go with the DIY route. Two-thirds of American taxpayers do the standard deductions. And unless you own a business or is self-employed, chances are you are too. The most common huge deductions are mortgage interest and property taxes so if you don’t live at an expensive home, you will likely have the standard deduction. Even donations need not be itemized unless of course, they are very generous ones.
You have time and patience to do it
If you have a straightforward tax situation with no dependents, investments, business, or the like, you will benefit from the free tax preparation software programs available online. But of course, taxes aren’t something you can do while watching your favorite Netflix show or chatting with a group of friends on Facebook. You have to give it some time to really ensure the accuracy of your entries.
When to Hire a Tax Attorney
You own a business
Depending on the type and size of your business, preparing taxes gets even more complicated. Thankfully, there are tax professionals to the rescue! If you’re a small business owner who uses a corporate or a Schedule C return, a tax attorney can offer you a solid advice on what you can or can’t include. If you’re a sole proprietor, you will fill out 1099 forms and need to itemize deductions.
 
Your yearly income is over $200,000
People who earn more than the average or at least $200,000 per year are more likely to undergo IRS audits. By the time the IRS comes knocking on your door, you want to be prepared with all your tax info. For most people, working with a tax professional is the best way to deal with it.
You have a complex tax situation
If you have several investments, significant assets, charitable donations, and/or own a business, you should consult a tax attorney. Take note that nearly all financial transactions impact your taxes, whether you have bought a major equipment or donated a big amount of money to a charity. Freelancers, entrepreneurs, or those who are self-employed will likely need professional guidance to sort their taxes and make sure everything is done properly. It’s the same thing if you plan to itemize your deductions. This process is a little more complicated than standard deductions and often, it’s best to leave it to the experts.
You have tax disputes
If you receive a notice from the IRS about a tax audit, you should hire a tax attorney immediately. He can represent you before the IRS, help negotiate a settlement, clarify issues, and ensure that you don’t overpay as a result of your audit. Only tax attorneys have experience in achieving tax settlements, as they know the ins and outs of tax programs.
All of us can’t help but frown as the tax season approaches. With the ever-complicated and changing tax laws, it’s easy to get lost along the way. Well, every taxpayer’s situation is different. Lucky you are if you have a pretty simple tax situation with no investments, deductions to itemize, and the like. But if you are an entrepreneur, earning more than the average, dealing