Understanding Tax Compliance

November 28, 2022
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Ensuring compliance with tax laws is unarguably one of the most challenging things taxpayers (both individuals and businesses) have to deal with, although it is all the more difficult for businesses. That’s because businesses are not only required to ensure compliance with federal tax laws, but they must also comply with state and local tax laws. And on top of that, the laws keep changing on a frequent basis. This adds to the misery of the taxpayer, who has to keep up with the changes or run the risk of incurring huge penalties. The worst part is that despite the IRS’s complex and cumbersome tax compliance requirements, taxpayers have little respite for any instance of non-compliance. No wonder, several business owners in Texas rely on Dallas tax attorneys to ensure tax compliance and avoid any major IRS tax problems. Continuing the discussion, here are a few things business owners must ensure to stay compliant with the IRS tax laws. Let’s take a look.

Ensuring Compliance With the IRS Tax Laws

Here are some of the critical things businesses must do to stay compliant with the Tax Code

1. Obtain Employer Identification Number (EIN)

An Employer Identification Number (EIN), also known as Federal Tax Identification Number, is a number with which the IRS identifies a business entity. It is the first thing a business (except a few) is required to obtain as soon as it gets registered as a legal business entity. Click here to find out if you require an EIN.

2. Pay The Required Taxes

All business entities are required to pay certain taxes to the federal and state governments. The type of taxes differs based on the type of business entity. Here are some of the most common types of business taxes companies need to pay.

Income Tax
Estimated Tax
Self-Employment Tax
Employment Tax
Excise Tax

3. File Timely Returns

The due date of filing a tax depends on the type of tax that needs to be filed and the type of entity that is filing the return. For instance, most businesses are required to file their income tax returns by April 15 of every financial year. The date may, however, differ for some business entities. The exact date is mentioned in the instructions section of the form used for filing the tax return. Similarly, employment taxes that are filed quarterly have due dates of April 30, July 31, October 31, and December 31, whereas, employment taxes that are filed annually have a due date of January 31.

Blog Related Post: What Is an IRS Tax Attorney?

4. Maintain Proper Records

Maintaining proper records not only makes tax filing easy, but it is also of great help when a business receives an IRS notice or is selected for tax audit. The IRS requires businesses to keep records of everything that has anything to do with income, deductions, credits, filing tax returns, etc. The time duration of maintaining a record usually differs anywhere between 3 and 7 years, on a case-to-case basis.

Last Word

Failure to comply with tax laws can lead to various sanctions from the IRS, including penalties. Many business owners, therefore, rely on experienced IRS tax attorneys for their tax-related issues. If you are facing any IRS tax problems or need help with the management of your company’s tax-related matters, look no further than the Law Offices of Nick Nemeth. Our team of experienced Dallas tax attorneys is here to assist you with IRS tax compliance issues and a range of other IRS tax problems. To learn more about how our tax attorneys in Dallas, TX, can help, call (972) 484-0829, or fill out our Contact Form, and we’ll take it from there.

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Brent Vahle

19:13 02 May 24

I called to see if they could help reduce some penalties and fees. The person I spoke with told me it might be counterproductive for them to take my case since their feels would likely equal the amount of penalty/interest abatement. I decided to pass on moving forward but was so happy to hear a legal team, or any business for that matter, who has that much integrity. I feel most others would likely try to take my money anyway. I hope I never have to go through this again, but if I do, I will definitely use the Law Offices of Nick Nemeth!

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18:44 02 May 24

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12:14 02 May 24

Great attorney who was able to provide quick and useful advice. Although my situation did not warrant their services, they still took the time to discuss solutions I could explore. I highly recommend visiting this office!

Tony Pantoja

12:57 09 Apr 24

Very professional and very knowledgeable, Jamie Flores was very straight forward and professional, a firm that doesn’t just take your money, Thanks

Carla Atwal

10:52 02 Apr 24

Nick was wonderful in guiding me with direction on some tax questions I had. He was concise, and to the point, and was happy to provide general info to me at no charge. I truly appreciate him and would highly recommend him.

Miguel Alvarado

15:56 25 Mar 24

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Lucy Foy

06:55 19 Jan 24

My first appointment I had with, Tax Attorney Nick Nemeth, gave me such a sense of relief. He listened and gave me his professional advice, Mr Nemeth took my case. I was well kept updated, by phone calls and letters. That really impressed me and gave me so much confidence in them. The case went on for a couple of months. The day I received the call from one of his team members Kyle, informing me that the case was resolved and that I owed absolutely nothing to the IRS, I was overwhelmed with joy. I would recommend this law firm to anyone that needs help, with any tax issue. Thank you, to the Law Firm of Attorney Nick Nemeth and his team.

Bradley Runyon

20:17 13 Jan 24

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19:55 11 Jan 24

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R G

20:53 21 Dec 23

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03:27 25 Jan 23

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03:44 14 Nov 22

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00:33 07 Aug 22

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23:49 03 Aug 22

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Ensuring Compliance With the IRS Tax Laws