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Managing tax liabilities: work an experienced legal counsel
For businesses, managing tax liabilities is an important ongoing task and businesses often go to great lengths to situate themselves so as to minimize their tax obligations. One of the challenges in tax planning, though, is that it isn’t always clear when a company may be doing the correct thing from a legal standpoint, or exactly what options a business has with respect to managing tax liabilities. Tax law, as is well known, is not always clear cut.
According to a recent report, most business leaders say they struggle with the lack of clarity regarding tax law, and would even be willing to pay more in taxes in exchange for greater clarity about acceptable tax planning strategies. The survey was specifically focused on the issue of tax liabilities across national borders, with 83 percent of American business leaders saying they want greater clarity, but lack of clarity can be a challenge for businesses in the United States as well.
The types of tax planning issues that can come up for businesses vary greatly, depending on the nature of the business and various factors specific its operation. Keeping track of tax responsibilities and integrating appropriate strategies into business operations is not always an easy matter, but is a task that can’t be ignored.
For businesses, of course, guidance on tax matters can sometimes be obtained through the IRS, but sorting out such matters can be challenging without guidance. This is why it is important to work with experienced tax professionals to ensure the business receives appropriate guidance, as well as experienced legal counsel for assistance navigating unclear aspects of tax law. Working with an experienced tax attorney becomes even more important when the IRS takes issue with the way a business is handling its tax responsibilities and pursued the issue in court.