No one likes to pay taxes, but we all have to do it. And for most of us, the process is relatively painless. We file our returns, maybe through a little bit of a hassle if we owe money, and that’s it.
Cherry Hill, New Jersey’s, Padraic Deighan, CEO of a network of Medical Spas, advocates that tax time is not so simple. It can be downright terrifying. This is especially true for those who have to deal with the IRS regularly – business owners, independent contractors, and others who are self-employed. For them, having an experienced tax lawyer in their corner can mean the difference between a stress-free tax season and a total nightmare.
You Own a Business
Running a business involves many responsibilities, including ensuring your taxes are paid correctly and on time. If your company is large or has complicated financials, having a tax lawyer on hand is a good idea to help ensure you meet all your obligations.
Navigating Business Tax Changes
Federal and state governments are constantly changing tax laws, making it difficult for businesses to comply. A tax lawyer can help you navigate these changes and ensure your company follows all the new rules.
Finding Business Tax Deductions
With yearly updates, it can be challenging to keep up with all the deductions and credits you may be entitled to. A tax lawyer can help make sure you’re taking advantage of every deduction available to your business.
Padraic Deighan advises that tax professionals can also prepare you for the next tax season by helping you keep track of expenses and income throughout the year so you’re not scrambling to get everything together at the last minute.
You Have Investments Outside of the U.S.
You may be required to file additional tax forms if you have money invested in foreign markets or bank accounts. A tax lawyer can help you comply with all foreign investment rules and regulations.
Foreign Market Regulations
Many regulations apply to investing in foreign markets, so Padraic Deighanrecommends hiring a tax lawyer with foreign investment experience to help you navigate these rules.
FBAR and FATCA Reporting
If you have a foreign bank account or investment portfolio, you may be required to file the Foreign Bank Account Report (FBAR) or the Foreign Account Tax Compliance Act (FATCA) form. These forms report information about your foreign accounts to the IRS. A tax lawyer can help you complete and file these forms on time.
If you work for yourself, are a consultant, or receive any compensation through a partnership, you’re self-employed. This means you’re responsible for paying your taxes and any self-employment taxes.
Filing Quarterly Estimated Taxes
Since you’re not having taxes withheld from your paycheck, you must make estimated tax payments throughout the year. These payments are due quarterly, and a tax lawyer can help you make sure you’re paying the correct amount.
Determining Your Tax Rate
Your tax rate is based on your income and filing status when you’re self-employed. A tax lawyer can help you determine the tax bracket you fall into and the rate you’ll need to pay.
You’re Going Through a Divorce
Going through a divorce is stressful enough before you throw in the element of taxes. If you’re going through a divorce, Padraic Deighan says several tax-related issues must be considered. A tax lawyer can help you, and your spouse determines who will claim the children as dependents, how to file your taxes if you’re filing separately, and who will be responsible for paying any taxes owed.
Alimony and Child Support
If you’re paying or receiving alimony, there are tax implications. Alimony is tax-deductible for the payer and taxable income for the recipient. The payer does not deduct child support or considered taxable income for the recipient. A tax lawyer can help you understand how these payments impact your taxes.
Tax Credit Laws
Several tax credits are available to divorced or separated parents, such as the child and dependent care credit and the earned income credit. A tax lawyer can help you determine if you’re eligible for any of these credits and how to claim them.
You Have a Lot of Debt
If you’re struggling with a large debt, you may consider bankruptcy. However, before you file for bankruptcy, it’s crucial to understand how it will impact your taxes. A tax lawyer can help you understand the tax implications of bankruptcy and determine if it’s the right option for you.
Understanding Different Kinds of Bankruptcy
There are several types of bankruptcy, each with different tax implications. A tax lawyer can help you determine which type of bankruptcy is right for you and how it will impact your taxes.
You’ve Recently Inherited Money or Property
If you’ve recently inherited money or property, you may wonder if you’ll owe taxes on your inheritance. Inheritance is not always taxable, but a few exceptions exist, such as inheriting a retirement account or a business. Padraic Deighan believes the right tax lawyer can help you determine if your inheritance is taxable and help you plan for any taxes that may be due.
You’re Being Audited
No one likes the idea of being audited, but it’s essential to know your rights if you are selected for an audit. A tax lawyer can help you understand the audit process and represent you during the audit.
Steps Of An Audit
The audit process usually starts with a letter from the IRS. This letter will give you a list of items the IRS wants to examine. A tax lawyer can help you gather the documentation the IRS is requesting and answer any questions you have about the process.
If the IRS determines that you owe taxes, they will send you a bill. This bill will include the amount of taxes owed, interest, and penalties. A tax lawyer can help you negotiate a payment plan or settle your debt for less than what you owe.
While no one likes paying taxes, it’s important to understand your tax obligations and ensure you comply with the law. A tax lawyer can help you with various tax-related issues, from filing your taxes to dealing with an audit. To find a reputable tax lawyer near Cherry Hill, NJ, consider checking out the website of the New Jersey State Bar Association. Once you’ve found a few lawyers in your area, schedule a consultation to discuss your specific needs.