In the United States, there are many different types of tax law, and there are also procedural laws related to taxation. While most tax issues are handled by the IRS, there are also many cases where tax disputes are heard in a different venue. For example, a dispute over state income tax may be heard before the state tax tribunal or by an administrative hearing officer within the Department of Treasury. An American who is living abroad must file a tax return. Knowledge of tax law is essential to successfully challenge a government tax assessment and justify a self-reported payment.
If you’ve been charged with a tax crime, it’s in your best interest to plead not guilty on your first appearance. The Justice Department and IRS will typically only prosecute a case if it’s likely to be proven beyond a reasonable doubt. Thankfully, two-thirds of defendants choose to plead guilty instead of going to trial. If you’re facing an IRS investigation, a tax attorney can help you understand your rights and the best course of action to follow.
While most people don’t go to jail for tax fraud, public figures are the most likely to face prosecution for evading taxes. President Hoover ordered the use of income tax evasion law to lock up Al Capone. Scarface was only convicted of one crime – income tax evasion. He eventually ended up in Alcatraz. And while tax fraud is still illegal, there are ways to minimize your tax burden. While avoiding the IRS isn’t possible in all cases, it can be beneficial for you to consult with an attorney.
While filing an income tax return is a complicated process, there are a number of different penalties you can face. One of these penalties is a failure-to-pay penalty. You may be surprised to learn that the IRS can charge you a higher penalty if you don’t pay all the taxes you owe. The IRS also has a rule in place called an “innocent spouse” penalty. The IRS can assess the amount of the underpayment as a penalty, but it must prove that the underpayment was due to fraud. If your spouse didn’t benefit from the business, you’re likely to get relief from this tax law.
Another important aspect of income tax law is the penalties for tax fraud. Falsely claiming an exemption for an unmarried dependent is clearly fraud, but applying a long-term capital gain rate to an income earned in the short-term is considered negligence. If you’re caught cheating the IRS, you could face a fine of up to 20 percent of the underpayment. This can be a simple mistake, but it can spiral out of control.
There are other types of income tax debt relief, such as an offer in compromise. An offer in compromise is a great way to reduce the amount of outstanding liability you owe. However, beware of scams and offer-in-compromise mills. These companies will promote their services aggressively, mislead you, and charge exorbitant fees. These companies are unlikely to provide you with the results you want, and can even make you fall further behind on your tax debt.
Tax lawyers can practice in many different settings. They may work for a large law firm, a boutique tax firm, an accounting firm, or a nonprofit organization. Many tax attorneys also work for the government, including state and federal tax departments, and nonprofit organizations and corporations. Tax attorneys may represent individuals, public and private companies, educational institutions, trade associations, and nonprofit organizations. They can be on a team with other lawyers and handle cases on their own.
GST and HSTP are also imposed on goods and services imported into Canada. However, the government allows for a partial rebate on GST/HST expenses, as long as the items or services you’re importing are exempt from these taxes. Among these types of products and services, financial services are a common example. They are generally exempt from sales taxes, but there are exceptions to the rule for certain kinds of income.