Knowing that the Internal Revenue Service (IRS) is looking over your taxes can be frightening, especially if you’re worried that you’ve made a mistake. There is no question that the taxes U.S. citizens pay are complex, and there are many situations in which simple errors can be made. Those errors may cost you money, but they could also result in you paying less than you owe.
The good news is that the IRS generally knows when someone has made a mistake versus when someone is trying to manipulate their taxes (resulting in tax fraud). As a business owner who owes tens of thousands of dollars annually, it’s a good choice to get help if you find out that you’re being audited or that the IRS has found that you owe more than you thought.
Should you have a tax accountant when you run a business?
When you run a business that has profits as high as yours, it’s worth the trouble to have an accountant and tax attorney on hand. Doing your taxes right can take time, and though you may feel you can do them yourself, it’s not worth the risk. When you own a business, having an accountant is a normal part of business activities.
Having an accountant and tax attorney has other benefits, too. If the IRS does reach out to you, you can refer them to the people who handle your business’s taxes and finances directly. That way, you’ll be protected and have a second (or third) set of eyes to go over the IRS’s requests for further information and documentation. Our site has more on the importance of protecting yourself if the IRS does want to complete an audit on your business taxes.