When I first struck out on my own and opened the doors to my self-made law firm, I remember being absolutely floored by the first tax bill come April. Having worked as an employee all my life, it was easy to forget how much of your income is immediately deviated towards your federal and state taxes.
I was lucky enough to have kept a sizable chunk of change stored away for a rainy day – unfortunately, many new business owners don’t have access to the kinds of resources I did prior to opening my firm. For them, the tax bill represents an almost impossible amount of money, money that went instead to essential expenses like food, housing, and bills.
With tax bills rising precipitously for Americans of almost all income levels, the IRS was “generous” enough to start offering installment plans to select taxpayers. Often, however, even these installment plans represent an absolutely ruinous monthly bill for the business owner, with very little recourse offered to them outside of taking out yet another loan to pay off their tax debts.
It’s a common adage that the IRS is the one government agency that you absolutely never want to mess with, and for the most part, this is true. If your options are between messing with the IRS and financial ruin, however, it may behoove you to take certain steps towards the former, as long as you have the right help on your side.
This is where lawyers who specialize in tax law come into play. Lawyers get a bad rap, but with a skilled tax lawyer on your side, you can successfully negotiate a mutually beneficial installment agreement that will not garnish your wages or your bank account.
Tax lawyers don’t just ensure a less painful monthly tax bill, however. High-level firms and attorneys can even provide offers in compromise, which reduces the tax debt by negotiating a lower tax bill. By providing a comprehensive case based on your finances, these lawyers can actually reduce the amount you owe by showing the government your expenses far outweigh the amount of taxable income your business is generating.
The trick, then, is finding these high-level operators in your area that will both provide you with a fair price for their services while also renegotiating your tax burden. For San Diego readers, one of the best tax law firms I’ve had the pleasure of working with is Hone Maxwell, a local firm that has been helping business owners navigate the treacherous waters around the IRS for well over ten years.
Hone Maxwell specializes in helping business owners and corporations stay in full compliance with local, state, and international tax codes, as well as providing estate planning and other financial services to customers. Taxes are one of life’s great constants, but there are always ways of reducing the burden on both your family and your business, and Maxwell will help you find them.
If you are like me and barely making it through your first year on your own, you owe it to yourself to get your tax burden lessened through the help of professional tax lawyers. By getting in contact with Hone Maxwell, you can ensure that your business can survive and thrive despite the watchful eye of the IRS.
Hone Maxwell, LLP
3465 Camino del Rio S #400, San Diego, CA 92108