Legal Questions to Ask When Hiring A Tax Attorney

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Taxes in general are stressful, and even the most well-intentioned among us can make mistakes, and, when it comes to the IRS, even a small mistake can come back to haunt you. The tax law experts in our network of dedicated, experienced law firms through our Small Business Legal Protection Subscription Plans can help you deal with all sorts of tax issues when it comes to running your small business, including navigating or avoiding audits or securing business assets. It's important to choose a tax attorney who can help you negotiate the ever-changing landscape of tax laws. Here are a few areas where you will want to ask questions of any potential tax attorney:

Credentials

The first question you should ask a potential tax attorney is if they are admitted to the state bar and what their credentials are. Make sure to ask for proof of those credentials: your lawyer should be licensed to practice law in your state, and, at the minimum, have a Master of Law degree. Less qualified lawyers may have lower fees, but they may end up costing you more in the long run. You can ask for referrals from small business groups, and check online reviews, as well. Attorneys who are registered with organizations will be included on public lists, such as the Tax Law Association.

Specialization

Tax attorneys tend to specialize in different areas of tax law, so make sure to choose an attorney who specializes in the area where you need help. Tax attorneys are experts at the intersection of accounting and law, so make sure to pick a lawyer uniquely suited for your needs. Ask if they have handled cases like yours.

Costs

Budgets vary, and you will want to make sure that the legal fees are within yours. Tax attorneys can be more expensive than other accounting or tax professionals, so the fees charged may be a deciding factor for you. Ask for an estimate so that you can budget and avoid any billing problems. Ask whether the lawyer you're considering charges by the hour or a flat rate, and get that agreement in writing. The more complex the case, the fees may be worth the cost. It's sad, but many people who need a lawyer the most are least able to afford it, and that's where our Legal Subscription Plans come in! You, too, can get legal help for your small business starting at just $49 per month.

If Things Don't Go Your Way

You will probably still have to pay legal fees even if you lose your case, but some attorneys work on a contingency fee arrangement, which means that your lawyer's fees will come out of any settlement you might receive as a percentage. If you're just looking to negotiate a payment plan with the IRS or CRA, it is unlikely that you will find a lawyer willing to work on a contingency fee arrangement, as most lawyers only take on these kinds of cases if there is the possibility of a large settlement and a good chance of the case working in their client's favor.

Most attorneys offer a free consultation so that you can ask questions and make sure that the attorney is a good fit for you and your case. With our Small Business Legal Protection Plans, you can get the legal help you need for tax issues for just one low, monthly fee. Plus, you will be able to get advice and ask questions of your attorney at any time without any additional cost. Have your lawyer look over contracts and agreements, help you compile an employee handbook, make phone calls and write letters on your behalf, and much more, all for one monthly subscription fee, starting at just $49. Learn more about our Small Business Legal Protection Plans or sign up your small business today!

2022 Small Business Tax Deduction Checklist

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Small business owners are already busy people, but that workload goes way up at tax time. Making sure that you're getting every tax deduction available to you is important, and tax laws and regulations are changing all the time. If you need some help navigating the new tax laws, our network of qualified, dedicated small business tax attorneys through our Small Business Legal Protection Plans can be a life saver that's within budget. Read on for a 2022 checklist for small business taxes:

Reducing Taxable Income

Tax deductions for businesses must be "ordinary and necessary," according to the IRS, which means that these are things that are common expenses for your industry and needed for you to do business. These include:

Health Care Tax Credits for Small Businesses

If you provide health insurance for fewer than 25 employees, you can deduct 50% of the costs of premiums, and smaller employers get a bigger credit than larger businesses.

Rent

You can deduct the entire cost of your rent for business use so long as you are not receiving title or equity to the property.

Depreciation

Equipment that you use day-to-day to run your business will lose value over its lifespan, and you can deduct that depreciation. You may need assistance from a CPA or tax lawyer to determine the rate of depreciation.

Insurance

Business insurance is 100% deductible.

Home Office

If you have a space in your home where you conduct business, you may be able to take a tax deduction for this square footage.

Transportation

Some professions require travel, and this includes driving time in your local area. The standard federal deduction for mileage is .58 cents per mile. You can also itemize these costs, and that requires keeping, recording, and tracking receipts of fuel, mileage (both personal and business related, if you're using your own vehicle), maintenance, parking, tolls, and more.

Advertising

Any costs related to advertising to attract business can be deducted, including marketing efforts for gaining or retaining clients. You cannot deduct the costs of lobbying.

Education

If you have paid for employee training or training for yourself, you can deduct those costs.

Office Supplies

Provided that you do not take inventory of office supplies at the beginning and end of the year, and that you do not keep records of when office supplies were used, and that taking the deduction doesn't make a huge change to your business income, you can deduct office supplies, such as printer inks and papers, writing utensils, software, cleaning supplies, and more.

Travel

Leaving town probably means additional costs, and these are calculated separately on your taxes. Fares for planes, trains, subways, rental cars, ride sharing services, taxis, hotels, food, and more are tax deductible so long as they are "ordinary and necessary," but you'll need to keep all your receipts.

Utilities

So long as you can prove that they were for business use, you can deduct the costs of your electricity, gas, heating, telephone, and more.

Costs of Startups

Some of the costs of starting your business may be tax deductible. There are additional deductions if you start an employee retirement plan.

Salaries and Benefits

You can deduct the costs of employee salaries, commissions, and bonuses.

Charitable Donations

Any cash donation made to a qualified organization can be deducted.

Business Meals

You can deduct 50% of the costs of business-related meals, both in and out of town. Employee parties and the costs involved can be deducted at 100%. Meeting or entertaining clients where you don't discuss business cannot be deducted.

Bad Debt

Any outstanding customer debt you have been unable to collect can be deducted.

Retirement

You can deduct the cost of your own retirement plan if it is qualified.

Taxes are complicated and complex, particularly when you run a small business. You have enough to worry about without adding the stress of a possible audit to it. Our Small Business Legal Protection Plans give you access to our network of qualified, dedicated small business attorneys who specialize in tax services for small businesses. Our experienced lawyers can make sure your tax documents are correct and help you avoid audits and other nasty tax surprises. Learn more about the benefits of our Small Business Legal Protection Subscription Plans or Sign Up Your Small Business Today!