The income tax and IRS tax relief system which was set up in 1913 by the Congress continues to remain in effect even today but with various amendments. Individual income tax that apply to natural persons and trusts and corporation income tax are both part of the income tax system. Individuals must pay income tax on taxable income from all sources across the globe, but the Revenue Act of 1921 provides special treatment to long-term capital gains. Earned incomes has been taxed at preferential rates at different times. Under existing tax law, corporations are taxes usually taxed as separate entities while shareholders pay individual income tax on the dividends they receive. Unincorporated businesses are generally not taxed. Instead the owners of such businesses pay individual income tax on the profits. They must pay tax on the profit even if they do not withdraw the profit from the business.
Tax law deals with the legal requirements for paying taxes to the federal government and state governments. The laws dealing with tax are complex. Federal law governs federal taxes while state law governs state taxes. Social Security taxes, Medicare taxes, income taxes, gift taxes are some of the taxes collected by the federal government. State income taxes and state sales taxes are the two most common state taxes. Law firms that handle tax matters are called taxation law firms or tax law firms. A tax law firm interprets and advises on issues of tax law. It is easy to commit errors on account ot the many taxes including payroll tax, employment tax, income tax and state sales tax. A tax attorney can help to avoid such errors.
A tax lawyer can help you avoid known traps or to get you out of ones that you may have fallen into. A tax attorney can help you avoid tax vagaries and other levies . As tax law firms have expertise in the processes involved, they may be able to procure a reduction in tax money owed or to eliminate it altogether. Many times tax attorneys work along with accountants to advise clients on the best ways to solve their tax problems, or carry out tax planning. Tax lawyers are experts at interpreting tax laws be it based on statute law, case law or international tax treaties. A tax attorney can assist you by negotiating with the Internal Revenue Service IRS if you owe back taxes. Tax laws change frequently and tax lawyers generally stay updated.
The IRS is taking serious action against you including audits, fines and liens.
You have a taxable estate, need to make complex estate planning strategies, or need to file an estate tax return.
You are starting a business and need legal counsel about the structure and tax treatment of your company.
You are engaging in international business and need help with contracts, tax treatment, and other legal matters.
You intend to file a lawsuit against the IRS.
You plan to seek independent review of your case before the US Tax Court.
You are facing tax fraud charges such as claiming false deductions and credits and are seeking the protection of privilege.
Tax lawyers do not have any special qualifications. Like all lawyers, a tax lawyer must have a JD degree from an American Bar Association accredited law school and must have cleared the state bar exam. Before a tax lawyer can practice in a state, he must pass the state bar exam.