When the smartest man in history himself suggests that the hardest thing to understand is income tax, then we can safely say that Einstein probably knows what he is talking about. If the great professor himself used to seek the help of an accountant or tax consultant when filing his returns, you should probably consider doing the same. Taking the help of tax experts at Internal Tax LLC is sometimes essential because the tax laws are constantly changing. This blog will highlight the importance of consulting a tax attorney at certain crucial moments:
When Setting up or selling a Business
If your entrepreneurial spirit drives you to start a new business, then it helps if you have some experienced hands on deck to help you navigate the complex tax scene. Starting off on your own is a daunting task in itself without having to keep track of all the nitty-gritty tax details. An experienced tax attorney will help you organize your finances in the initial stage of your business, you that you can deal with any tax formalities that need to be completed when your project takes off. The tax team will help you negotiate contracts, report income and create invoices so that all your financial data is kept in order. They will also help you analyze the tax benefits and the drawbacks of your business ventures so that you can make an informed decision when moving forward.
When bequeathing money to others
Your family and your loved one are your main concern and your top priority. When you think of leaving money for your near and dear ones, you should also think about the tax requirements that need to be completed. If you want to share your hard-earned wealth with your family, you should take the help of a tax attorney so that your intention to help the family does not put an unnecessary tax burden on them. Tax attorneys will help you prepare an Internal Tax LLC review that includes all the relevant details of the federal government property and estate taxes that need to be taken into consideration when you pass on your wealth.
When you need to clear back taxes with the IRS
No one can escape paying taxes. If you do not file your returns on time, or if your tax calculations are messy, you will end up owing the IRS a significant amount of back taxes. When you receive a notification from the IRS about pending taxes, you can get in touch with Internal Tax Service (ITS LLC) and have an experienced tax attorney go through your financial records to make the process a little easier. Our attorneys will work closely with the IRS so that you do not have to worry about facing any legal action related to your back taxes. Internal Tax Service will help you come up with a systematic monthly payment option so that you can clear your taxes with it being a burden on your current financial status.
- Changes to retirement contribution limits
The carefree attitude you live with tends to fade away as you grow older. Once you get older, you begin to take on financial responsibilities, and you slowly realize the importance of planning ahead. One way to plan your future is to invest in a retirement plan so that you save up enough money for the time when you have to quit your job. The beauty of saving money for your retirement is that it helps you save out on your tax as well. Keeping money aside in tax-advantaged retirement accounts will help you lower your tax burden. Given the changes made to the base contribution limit, make sure you follow the latest laws when preparing your taxes.
- Changes to HSA contribution limits
Apart from the changes made to the tax-advantaged retirement accounts, the Tax Cuts and Jobs Act also gives a minor boost to the health savings accounts as well. In case your taxable amount falls in the high-deductible category, you can use the adjustments offered to save on your income tax. The changes to the Health Saving Account (HSA) will help individuals save pretax income to cover health care costs that they may incur later on. Although not particularly significant, the increase in the contribution limit from $3,450 in 2018 to $3,500 is worth mentioning because it can help those who have a high-deductible insurance plan. Tax experts and financial consultants at ITS LLC will help you analyze all the changes to HSA contribution limits so that you can make the most of the tax cuts.
- The medical expense deduction threshold
The rate of deductions for medical expenses keeps changing as the tax laws are modified. When the Affordable Care Act was introduced in 2010, the deductible medical percent was increased from 7.5 percent to 10 percent. Once the new tax law, the Tax Cuts and Jobs Act was introduced, the rate was bought back down again to 7.5 percent. The frequent changes in the medical expense deduction threshold may be confusing, and at times perhaps a little frustrated as well. If you want to claim a tax exemption or deduction because of medical and dental expenses, you need to do a little research before you file your returns.
If you need any help overcoming the common mistakes and problems mentioned in this blog, or if you have any questions about how to prepare your tax returns, you can call the ITS LLC customer number and ask for assistance.
Read More: When do you need a tax attorney