The Importance of Consulting a Tax Expert: Avoiding Costly Mistakes

Taxes can be difficult to understand and the consequences of getting them wrong can be serious. That is why it is essential to consult an expert if you have questions about your taxes. Tax lawyers and certified public accountants (CPAs) can both help you if you have tax issues.

One of the biggest challenges people face is understanding when they can take a deduction. People should take advantage of all of the legally available tax credits and deductions they have. However, taking questionable deductions can make you more likely to get audited. Plus, you will have to pay late fees and penalties if the IRS determines that you were not entitled to that deduction. Getting professional advice can help you avoid making those mistakes.

If you are a small business owner, there are several tax benefits available to help you. You can deduct business expenses, vehicles, and, if you work from home, some portion of your home’s expenses. Ensuring that you take all of your deductions is one way to maximize your profits.

Personal income taxes also have available tax deductions. You need to consider whether you want to itemize or take the standard deduction. Since the standard deduction increased, many people are better off taking the standard deduction. However, some people may do better itemizing.

One of the other issues that people have is when they have not paid their taxes in a while. A tax attorney can help you catch up after a period of not filing taxes. They can also help you negotiate back taxes. They can help you settle your taxes, oftentimes achieving a compromise on your tax bill.

People also seek help from tax lawyers if they are facing tax audits. While audits can be routine, they generally indicate that the IRS has found something troubling in your tax return. Heading into the audit, you want to have the documentation to back up any exemptions, deductions, and credits you may take. If the IRS determines that you have improperly taken any of these, it does not have to result in severe consequences. You can often arrange payment plans to handle any back taxes. An attorney may even be able to reduce the amount of taxes that you owe.