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Income tax time can bring anxiety to business owners

It's getting close to that time again: tax time. This often brings anxiety to those who believe they are going to owe extensive tax amounts at the end of the year. It is also stressful for business owners or corporations that still owe tax deficits to the Internal Revenue Services (IRS) from a previous year, or are in fear of being audited.

Audits tend to make even the most honest individuals nervous. But they are usually not as bad as feared. The IRS usually starts by requesting documents and explanations of deductions or credits taken. The request is made by mail. Sometimes an in-person interview is requested if the issues are complex or if the documents needed are too extensive to be handled by mail.

IRS audits usually cover up to three years of tax returns, but can go back as far as six years if an error is found that requires a more extensive audit. The timeframe of an audit cannot be predicted since it is based on the type of error and how quickly it can be resolved. Results can be: no changes, favorable to you or favorable to the IRS.

Keep in mind that you do not have to accept their audit findings and proposed changes if you disagree with them. You have a right to request a conference with an IRS manager, mediation or to get an attorney to appeal the findings.

What an attorney can do for you

A tax attorney can not only file an appeal for you with the IRS, but he or she can represent you at the hearing. Because they are well-versed in the tax laws, they can advise you on how to defend your argument, litigate unfair charges and negotiate tax amounts due.

Don't go to just any tax attorney though. You should find a tax attorney that has enough years of experience under his or her belt to fully understand the tax laws and issues. If you are a small business owner with complex tax returns, a single individual or couple, a tax attorney can also prepare your income tax returns from start to finish. If they prepare them, they will also stand behind them.

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