TOP

Tax Law

tax law

Tax law is a branch of the law that covers certain procedures and directives with regard to the tax processes imposed by the government. Under this very broad legal facet are the estate taxes, property taxes, income taxes, and the like. It also covers certain regulations on duties on products imported from other countries, as well as obligatory levies imposed on individuals by the government. The tax law, in its broadest sense, covers those taxes that are paid either directly or indirectly. Direct payment of taxes involves a person being obligated to pay taxes imposed against his or land, real or personal property and income. Indirect payment of taxes involves a person paying taxes imposed on consumable goods or service. A retailer or any intermediary collects these taxes together with the amount paid for the bought goods or availed services.

There are various tax laws in the U.S. enforcing the collection of various revenues. These laws are within any of the four levels of government in the nation, from local, regional, state, to federal levels. Entities that enforce these laws include, among others, utility companies including power generators, water providers and the like, and other agencies.

Indeed, the general law on taxes is very much complex. Add in the fact that it changes over time, given how the tax code is not only amended every year, but is also used in a way to address various needs within the political, economic, and social scales. This is why it is not surprising that a lot of taxpayers—individuals and employers alike—find it difficult to deal with it, more so if they are already facing tax debts and penalties. This is why they seek an expert tax lawyer who has in-depth understanding of the ever-changing laws on taxes. Not only that, but the legal counsel has the experience to assist taxpayers who are either undergoing certain difficulties with the Internal Revenue Service (IRS) or any revenue department in their state or are trying to avoid any inconveniences with their obligations to the government.

Take for instance individuals who earn income from being employed. With a few exemptions, whatever amount they earned is subjected to taxes, in which employers will deduct the amount taxable from their paychecks. That way, by the end of the year, they won’t have any outstanding income tax due and owed. But then, failure to submit income tax returns on time may cause them inconvenience in the long run, especially that there’s interest involved. Meanwhile, businesses, including those who are self-employed and those who are working as independent contractors, also have to deal with taxes. However, certain problems arise when they have taxes owed or are facing audits.

This is where the expertise of an attorney for tax law is direly needed. Both income earners and business owners think of hiring legal counsels to help them with their tax dilemmas, especially those involving audits, fines, and liens. Audits, which are conducted by the IRS or the revenue department of the state, are reviews of tax returns of individuals and businesses. They are entitled to their rights in such instances, which is why a lawyer is often required. The same way occurs when they face fines and liens. The IRS may impose fines on those who submitted tax returns either inaccurately or late.

Moreover, liens may be imposed on one’s property if he or she failed to pay taxes on, say, a real property. The IRS establishes liens so that it can establish one’s property as collateral for the money owed to the government; failure to pay means losing the property.

Mistakes are abound for those who deal with the various aspects of tax law, especially when putting into account the various overlaps and changes to employment, income, sales, payroll, and other facets of tax on the local, regional, state, and federal levels. Businesses, as well as individual income earners, can truly benefit from their consultations with a tax attorney to help them become aware of the things they should do and avoid when dealing with taxes.