Tax Attorneys in Austin, Texas
Whether it’s for an individual or a business in Austin, Texas, we know our clients need to make sure their business taxes comply with the law and lay the groundwork for the future they envision. And if that seems serious, it is because failure to comply with the IRS means headaches, worry, a loss of money through penalties, and a loss of focus on other goals and business objectives. For clients who have already made errors with their taxes, we can help them dig out and strive for a favorable outcome, and for those who are simply planning ahead, we can help them map their financial moves according to the requirements of the law.
Business Tax Compliance Requirements
Tax compliance for businesses is not easy to understand, so it makes sense for business owners to make mistakes as a result of this complexity. Federal, state, and local taxes create multiple layers of potential to misstep, even if a business successfully navigates one area. More importantly, understanding taxes and executing with proper compliance with business law are two different things.
Beyond Audits: No individual or business wants to be audited for obvious reasons. It is very time-consuming, and likely errors—unintentional or deliberate, as determined by the IRS according to supporting documentation—have occurred and will be found. But audits are only one tool used by the IRS, and there are four different types of compliance officers alone. Automated Underreporter Program software matches business and individual claims with the claims of those who paid them. Compliance checks inquire about recordkeeping, correspondence examinations, crosscheck documents regarding claims, and then they are escalated to in-person examinations, office examinations, and field examinations. Soft letters and educational letters are mailed out and, in the most extreme cases, criminal and civil investigations are opened on individuals and businesses.
Types of Taxes: Property, sales and use, self-employment, employment, income, and estimated taxes … if a business doesn’t make a mistake on one type of tax, there’s always another to consider, which is why clients need legal representation in West Lake Hills, Bee Cave, Lakeway, Round Rock and all of the Austin metro area from a firm they can trust to strive for a favorable outcome.
Common Business Tax Issues
The same issues crop up again and again with business taxes, often with no knowledge on the part of the owner. Mistakes happen, and taxes can be needlessly complex. We’re here to help clients navigate these waters so they can work without worry and focus on running their businesses to the best of their ability.
Filing Late: As obvious as it might seem that a business needs to file its taxes on time, the particular needs of each business can become complex and lead to errors.
Employment Taxes Not Deposited Correctly: A business must deposit employment taxes correctly and quickly, and depending on how much a business makes, the rules become more and more strict.
Not Paying Enough in Estimated Taxes: The IRS suggests that businesses make estimated payments throughout the year based on the money they’re bringing in. Think of it as an investment in a worry-free mind, because overpayments just mean money can be reclaimed, while underpayments mean penalties. Losing or gaining money come tax time is up to the business owner.
Not Separating Business & Personal Expenses: Without these two types of expenses being completely separate it’s very challenging for the IRS to determine if a business has been charging personal items to its account. Business owners who use a business account credit card for double duty expose themselves to a lot of risks if ever audited.
Possible Penalties For Violations
Penalties for violations of tax compliance for businesses depend on the type of error a client has made. As with much of the law, intention matters: if a client is negligent, fewer penalties will be assessed than in a case of fraud or evasion. Willfully trying to work within a gray area of tax, or simply trying to avoid paying taxes altogether is never advisable. The IRS is often slow but they always catch on sooner or later.
Tax Attorneys in Austin, Texas
With other tax attorneys in Austin, Texas clients only get the legal side of things. Their lawyers have to work with CPAs and bookkeepers, which drags out the process and can lead to errors. At Adams & Anestos, we have in-house CPAs and bookkeepers to assist with all of your tax needs. We serve clients in West Lake Hills, Bee Cave, Lakeway, Round Rock, and all of the Austin metro area.