Those who work on their own will need to be more proactive about their financial situation than if they worked for a business.
Detroit, MI – People who are self employed know that filing their taxes can be much more of an ordeal compared to working for a company as an employee. The person will owe the government much more money when they file, as it is not taken out as they receive their pay throughout the year. Lawyers who focus on these kinds of issues for the self employed can give more specific advice to any individual that needs taxation advice when filing. There are a few reasons why a person who works on their own may want legal advice.
Advice about expenses
Detroit tax lawyers may need to give advice related to how business expenses should be treated on the tax return. Everything from home office space, to fuel in vehicles used for business, to payments for internet access and computers can potentially be listed as a business expense. However, people who go overboard or make illegitimate business deductions may start to have trouble with the IRS.
Making quarterly payments
Most self employed people should make quarterly payments throughout the course of each year, rather than owing the government a very large amount when they file annually. Michigan tax lawyers can provide more specific advice about how to pay on this schedule properly, as well as related issues for deductions and calculating the right amount that includes the self employment tax for things like social security and medicare. There can be problems later if the person overpaid or underpaid by large amounts.
If the IRS conducts an audit or other investigations
Tax lawyers should be contacted immediately if a self employed person is under investigation by the IRS. This is normally due to large amounts of tax debt or other irregularities. An attorney can help the person avoid potential criminal charges, or negotiate a settlement if it appears that the IRS will be asking for a large amount of money because the person has not paid their taxes properly. It is important to have legal advice to understand how to comply with their requests, but also to protect the person’s interests if they government is pursuing them.
Planning for the future
Those who work on their own will need to be more proactive about their financial situation than if they worked for a business. Estate planning lawyers can give advice about investing, setting up trusts, wills, and other similar documents that can pay out wealth through the person’s estate. They can also give information about the tax consequences of these types of financial planning and how to best protect family members in the event of the person’s death or other similar unforeseen circumstances.
Learning more about tax law issues
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