Last week The New York Times reported that General Electric owed no taxes in 2010 despite their 14 billion dollars in earnings. The company does expect to pay taxes in September, when it files its returns but will utilize any legal loopholes to reduce the amount they owe, according to Reuters. GE’s Chief Executive Jeff Immelt stated their small tax bill was the cause of 30 billion dollars in losses related to the financial crisis in 2009. Immelt and other experts agree the tax code is complex and should be reformed. The Obama administration believes the tax code can be reformed without a detriment to revenue.
All Americans inevitably must pay their taxes. Large corporations have the funds to employ taxation experts and accountants that work to reduce their tax payments, many other businesses and individuals don’t always have the money to retain tax professionals. When a person can’t pay their taxes or forget to file the government will come after them with heavy fines but hiring a tax lawyer can keep the tax collectors from harassing the delinquent tax payer.
In addition to heavy fines, the IRS can seize property and assets. Tax attorneys have the expertise needed to understand our complicated tax regulations. Small businesses and individuals tax payers may have a more difficult time with translating and filing their taxes. Protection from fines and property seizure can be is possible with a knowledgeable tax lawyer.
