The Internal Revenue Service (IRS), the body responsible for administering tax laws and collecting federal taxes in the US, has made various updates to its policies. Some of the updates will impact small businesses.
Therefore, if you’re a small business owner in the U.S., you must understand these changes to stay compliant.
Remember, a lack of compliance with IRS regulations could lead to potential audits and other issues. If you find yourself in such a position, you may want to seek attorney services from experienced firms like Cumberland Law Group.
Here’s everything you need to know about the new IRS policy updates and how they affect your small business.
What are some of the policy updates that will affect your small business?
The IRS is constantly updating its tax policies both for individuals and businesses. One of the latest changes is the decrease in the self-employment tax rate.
Following the reform, small business owners will now pay less taxes on their self-employment income. This is part of the ongoing effort by the IRS to make tax compliance easier for small businesses. Therefore, you’ll now be able to save a few dollars on your taxes, a significant boost to your bottom line.
Good news, right?
So, now you have no reason not to pay tax.
However, sometimes you may fail to pay tax or comply with the IRS regulation, not because you want to, but because you don’t understand tax law. This is where attorney services are incredibly valuable for your small business.
Why you need attorney services for your small business
The IRS might audit your small business due to various factors, including;
- Misreporting your income: i.e., reporting a higher-than-average income, rounding up your income, or averaging your incomes
- Disproportionate deductions to your income
- Excessive expenses
- Large amounts of cash transactions
Once you get involved in the above, the IRS may want to review your business accounts and financial information to verify the information and tax reported.
If not handled properly, you could end up in financial and legal trouble after the IRS audit. This is why you need attorney services to help you navigate the audit.
Reasons for hiring experienced attorneys for your small business
So, if you’re facing audits from the IRS due to tax issues, you might want to hire an experienced law firm like Cumberland Law Group. Here are some reasons;
- Knowledge and experience: Attorneys specializing in tax law have vast knowledge and experience dealing with the IRS. They’ll help you navigate the complex tax code to increase your chances of a favorable outcome.
- Preparation and representation: An attorney will prepare you for an audit by reviewing your business’s financial records and identifying potential issues that could arise during the audit. They’ll also represent you during the audit, allowing you to focus on your business.
- Legal protection: An experienced attorney will provide legal protection during an audit, ensuring that the IRS follows proper procedures while protecting your business rights.
Additionally, an experienced attorney will help you navigate complexities with historic preservation easement tax audits.
While the IRS provides a tax incentive for historic preservation easement, it closely scrutinizes these tax deductions. Therefore, you should work with an attorney to ensure compliance.
Avoid IRS tax issues with the help of experienced attorneys
If you’re running a small business, you must comply with all tax laws and regulations by the IRS. Failure to comply could lead to tax audits, fines, and prison sentences.
An experienced law firm can help you comply with all tax policies and regulations. They also have the experience and expertise to help you navigate the complex IRS tax audits.
