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When Should Your Business Hire a Tax Specialist?

By | Maggie Bloom | Freelance Writer

Do you have trouble preparing and filing taxes for your business? Well, you need the services of a tax specialist. But, who is a tax specialist? They are professional individuals with either an accounting or law background. They help business owners and organizations to prepare and file taxes. Here are instances when your business may need to hire a tax specialist.

When applying for a penalty relief

A specialist can help you understand the need to apply for relief from a penalty. There is an IRS administrative relief from a penalty that is pertinent under its first-time penalty abatement policy.

A tax specialist can help you check if you qualify for tax relief. They can check if you had not filed a return for the three tax years before the tax year you received a penalty. Also, they can help check if there are no penalties in those previous years.

If a taxpayer can table a reasonable cause for not meeting their tax obligations, they can access relief from penalties. The IRS will evaluate any genuine reason for failing to pay taxes or filling a return. Relief comes in cases such as death, accidents, and sickness. However, a lack of cash to pay the fee cannot be a consideration for tax relief.

Other instances where you can be legible for tax relief is when you had filed for an expansion of filling time. Meeting a tax specialist is inevitable since they can help you ask for ease of any penalties incurred.

When in need of tax planning consultancy

Planning of taxes is an activity that goes on throughout the year. A professional tax specialist can provide you guidance on tax planning when the need arises during the year. It can be after every quarter of half. Tax planning is an analysis of your financial situation with a purpose is ensuring tax efficiency.

Through tax planning, all foundations of your financial plan work organized in the most tax-efficient style probable. The discussions should include strategies for legally reducing taxes. Since tax specialists have the latest tax laws and legislation at their fingertips, they can inform you how to ensure your tax bill remains low.

When preparing to file your taxes

As a small business owner, consultant, or government worker, you have to pay self-employment taxes. You may have a side hustle to boost your income. This means you will still have to file self-employment taxes for your other business. With all these burdens on your shoulder, a tax specialist will come in handy. A self-employed person can gain many deductions and write-offs, which doesn’t apply to a self-employed person.

If you are preparing to file both your taxes, hiring a professional tax expert or accountant should be included in your budget. They will do the toil of preparing your enterprise tax return and your tax return.

When your business is likely to have adjustments in capital market

There are instances throughout the year when you may want to sell stocks, securities, or shares of your investments. All these are known as capital asset transactions. These transactions are customarily taxed, although at a lower rate. Forgoing payments of such taxes can be dangerous for future filling.

Reporting capital asset transactions requires the help of a professional tax lawyer or accountant because it’s a tedious process. The capital assets are declared in a different form since limitations apply when trading securities.

When in need of harmonizing tax savings

For instances where you pay business taxes through your personal tax return, an expert can do both returns to harmonize tax savings. A situation is if there is a loss on your small trade taxes. They apply to your tax bill to reduce your overall taxes. Also, a lower business income signifies a lower self-employment tax. With such challenges on board, a tax specialist will aid in a significant way.

Various tax specialists are out there to help. There are enrolled agents who must have undergone a three-part test specializing in business laws and representation issues. You can opt to use Certified Public Accountants or Tax lawyers who have earned a law degree and approved through the passing of the state bar exam. Your tax specialist must have a Preparer Tax Identification Number issued by IRS since its only tax professionals with a PTIN who can legally prepare taxes and represent clients if issues arise with IRS.


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