Tax time for businesses is often a complicated process. If you don’t have a good tax attorney, you could end up getting audited for mistakes an accountant makes. Florida tax lawyers must stay up to date on the newest tax laws, including business deductions. Another benefit of using a Florida tax attorney is that should the Internal Revenue Service audit you, your attorney already knows everything about your business and your filings – you won’t have to contact an accountant to ask him or her to forward your records to the attorney. No matter how well you do your taxes, there is always a chance of being audited, but you can reduce any IRS red flags by using a tax attorney instead of an accountant.
1. Retain the Best Florida Tax Lawyer
As with finding the right accountant, you want the best Florida tax attorney. You need someone with extensive business experience and tax experience. France Law Firm’s tax attorneys have many years of experience incorporating businesses, dealing with audits, and filing business taxes.
Businesses must file their estimated taxes each quarter or pay penalties. France Law Firm helps you determine an estimate that doesn’t have you paying too much to the IRS each quarter but enough so that you shouldn’t have penalties when tax time arrives.
As always, this is a guessing game, so if your business makes more than it did in previous years, you could pay small penalties. However, if your business is slower, you could receive a refund. A good Florida tax lawyer also works with you throughout the year to ensure that your records are in order and you are ready for tax time.
2. 179 Property Deductions
When you purchase certain items throughout the year, you could take the 179 deduction, which allows you to deduct the full amount of the property. For example, a new computer, printer, office chair, or other office furniture and equipment will usually net you a larger deduction if you take the full deduction. As of 2022, you could deduct up to $1,080,000 of eligible property.
3. Be Sure to Pay Self-Employment Tax
If you are self-employed, the self-employment tax contributes to the number of quarters you have to eligibility for Social Security and Medicare. The form used for self-employment taxes is Schedule SE. You must file Schedule SE if your income was at least $400 or you were a church employee who earned $108.28 or more.
4. Keep Adequate Records
It’s tempting just to throw your receipts in a box and let your tax attorney worry about them. However, you might need those receipts for something other than taxes. If you need to return something, you will most likely need the receipt.
If a customer comes back for warranty work, you’ll need that receipt. Many reasons to keep adequate records exist – least of all, saving your tax attorney time and frustration when you have all of your receipts neatly categorized and preferably in date order.
You should also keep copies of the invoices you give to your clients. If you use software to generate invoices, the software will keep the invoices for you. However, keeping a paper copy ensures that you have your records should something happen to your computer.
5. Take Advantage of Capitalization Rules
When you purchase tangible property for your business, you could realize a significant deduction. Not all accountants know all the rules regarding capitalization. A Florida tax lawyer ensures that you receive all of the proper deductions and other benefits that might be associated with capitalization and tangible property.
Contact France Law Firm
When you have a business, it’s better to use a Florida tax lawyer during tax season. Businesses pay a lot of taxes, so every tax break is needed to save money. The Florida tax attorneys at France Law Firm ensure you pay what you are supposed to pay while maximizing deductions and other tax breaks afforded to businesses.
Contact France Law Firm today to schedule a consultation regarding your business taxes.