Why Doing Your Own Business Taxes or Resolving Your Own Tax Problem is a Terrible Idea
Running your own business means wearing a
lot of hats, from office cleaner and supplies buyer to client schmoozer and
payroll maker. But should you add tax preparer to your already long list of
duties? What if you have a tax problem with the IRS? What if doing your own
taxes creates a tax problem?
We often see small business clients,
clients with either a schedule C, or a corporation, partnership or LLC, with payroll and income tax problems, or an
audit, simply because they thought they could do it on their own. It’s a bad idea.
If you are used to doing your own taxes
when you were an employee or freelancer, you may think that preparing the tax
return for your small business will be no big deal. After all, there are plenty
of great tools on the market, from expense tracking apps for your smartphone to
software like QuickBooks for your laptop. But before you start scanning those
receipts and filling out those endless forms, you might want to reconsider.
Note; we encourage all readers facing an
IRS tax problem to contact us for a
free, no-obligation, confidential consultation at www.fairtaxsolutions.com. We can also help with unfiled tax returns for previous
years, getting your business back into compliance.
Even if you think you can, doing your own
business taxes is a terrible idea. Resolving your own tax problem is an even
worse idea. Here are some of the reasons you should leave the filing of your
business tax returns and resolving your business IRS tax problem to the professionals...
It
is Easy to Make a Mistake
Even a small business tax return can span
dozens of pages, and many returns are even more complex. With so many figures
and so much information, you have literally thousands of opportunities to make
a mistake.
Even a small mistake could have big
consequences for your small business, and doing your own taxes puts you at
risk. At the very least, those inadvertent blunders could mean paying more
taxes than you should or cost you in penalties and interest; at worst those
errors could trigger an audit and tie your business up for months. If you owe
back taxes, the IRS can put a levy on your bank account and put a lien on your
property until you pay up.
The
Tax Laws Are Always Changing
Our tax laws have had some of the most
dramatic changes last year than they had the previous 30 years. The tax code is
already one of the most complex documents ever written, with more words than
the Bible and complexities at every turn. To make matters even worse, those
laws are not static; they are always changing.
Even if you are an expert on the current
tax code, that expertise will not last long. Every new year brings a slew of
new tax changes, and many of them will directly impact your small business. If
you rely on your own expertise and your technological tools, you could miss a
vital update that could save your firm money or help you avoid the ire of the
IRS.
You
Will Be on Your Own in Case of Audit
As an individual taxpayer, your chances
of being audited are less than 1%, but as a business owner, filing a schedule C
the odds are far higher. The IRS is increasingly setting its sights on the
small business community, and that means you have a target on your back.
Even if you do everything perfectly, you
have a good chance of being audited sooner or later. And if you prepare your
own taxes, you could be on your own when the IRS comes calling.
Audit defense and IRS representation is a
specialized skill set which 95% of CPA’s don’t have. We always recommend hiring
an experienced and reputable tax resolution firm like ours who deals with the
IRS for a living, day-in, day-out.
The
Expertise You Gain When Hiring A Pro is Well Worth the Cost
Having your business taxes professionally
prepared can be expensive. Depending on the size and complexity of the return,
you could pay several hundred dollars to several thousand, to have the work
done.
Even so, this is one expense you should
be happy to incur. If you do your own business taxes and make a mistake, even a
single blunder could cost you many times the fee you’ll pay to have it done
right. So do yourself and your business a favor; leave the taxes to the
experts.
Running a small business is hard enough.
The last thing you want to do is add more tasks to your already busy plate or
getting into tax tax trouble. If you are still doing your own business tax
returns, it may be time to hand off this vital service to a professional.
Our firm specializes in tax resolution,
even if you have years of unfiled tax returns, we can help! If you want an
expert tax resolution specialist who knows how to navigate the IRS maze, reach
out to our firm and we’ll schedule a no-obligation confidential consultation to
explain your options to permanently resolve your tax problem. Please visit www.fairtaxsolutions.com to find out more, or call our number at (470) 305-1233 to schedule a free, no-obligation consultation today!
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