Tax Law in Albany, NY

Tax law refers to the regulations governing the calculating, filing, and paying of taxes. When handling tax law cases, attorneys may manage taxes at various levels, such as local, state, and federal. The practice of this type of law involves understanding, defending, and resolving issues related to payment or non-payment.

If you hire a qualified , New York professional to handle your business or personal taxes, you may feel protected from disputes. However, even a misplaced comma or added zero can cause the IRS to believe you owe more than you do. In some instances, accountants might also take deliberate actions that result in legal and financial repercussions.

Unlike New York City and Yonkers, Albany does not impose a city income tax in addition to the New York State income tax. However, the City of Albany does impose property tax, based on the value of the real property. Under Albany Municipal Code, the City has nineteen tax districts for assessment. In addition, the City allows you to pay property taxes in installments. However, the first installment of 50% of the total tax due must be made by February 6 each year. Additionally, you will have to pay interest on any remaining amounts due. Be aware, the City charges a 4% penalty in the first month for a late payment, and 1% for each succeeding month.

Tax Law Topics to Understand

If you find yourself facing , New York taxation issues, understanding tax law and how it works can help. Most Americans have only basic knowledge of how the tax systems work, and with good reason. They are complex. Small business owners need to understand tax law and how it impacts their business. Here are some essential tax law topics to get you started.

IRS Audits

An IRS audit is a review of an experienced Albany, New York individual’s or an organization’s finances and accounts to ensure accuracy. The audit may also uncover discrepancies business owners were not aware existed.

These are just a few of the things the IRS looks for when conducting an audit:

  • Does your lifestyle match your income?
  • Are you passing off personal expenses as business expenses?
  • Are you overstating any of your business expenses?
  • Did you fail to report any business income or did you inflate that income?
  • Do your payroll taxes match that of your employees?
  • If your business handles a lot of cash,  are you diverting any of this into your own pocket?

If you are about to have your business audited, consider hiring a qualified Albany tax law attorney. They can help you to navigate the complex process ahead and offer advice as issues arise.

Tax Evasion

Tax evasion refers to any activity an individual or business in , New York engages in to reduce or avoid their tax liabilities. There are two types of tax evasion: evasion of assessment and evasion of payment.

Evasion of assessment means the taxpayer performed an action with the goal of defeating the assessment of a tax. The under-reporting of taxes is a common example of this. Evasion of payment means that you avoid paying the IRS by hiding money or assets that should become taxed. Here are some examples of tax evasion:

  • Keeping a double set of books
  • Overstating deductions
  • Destroying financial records
  • Concealing sources of income
  • Filing a false return
  • Making false invoices
  • Holding property in another person’s name to avoid taxation

If you are found guilty of tax evasion in Albany, New York you can face hefty fines, prison time, or both.

Income Tax and Fraud

Income tax fraud is the willful attempt to evade or defraud the IRS and Albany tax laws. Tax fraud occurs when an individual or business does any of the following:

  • Prepares and files a false tax return
  • Willfully fails to pay taxes
  • Intentionally fails to file an income tax return
  • Intentionally fails to report income received
  • Makes fraudulent or false claims on the tax return

You can report suspected tax evasion and fraud involving individuals, businesses, and tax preparers to the NYS Tax Department in Albany. Tax fraud in Albany can include failing to report total income, or selling untaxed liquor, motor fuel, and cigarettes. Under New York State law, criminal tax fraud in the fourth degree in Albany is a Class E felony. Penalties for a non-violent Class E felony can include up to one year in prison.

When Would You Need an Experienced Albany, New York Tax Law Attorney?

Facing Legal Issues Regarding Taxes

If you’re under investigation from the IRS or planning a lawsuit against, you will need a qualified , New York attorney who practices tax law. To illustrate, counsel can help collect the information you need and create a viable defense.

When Starting a Business

There’s more to starting a business in , New York than selling products or services. You also need to determine the business type and structure. This status, in turn, determines how the business and your earnings get taxed. Choosing the wrong business structure can cost you.

According to the NYS Department of Taxation and Finance, businesses in New York generally pay a state corporate franchise tax. For tax years beginning on or after January 1, 2021, the New York corporate franchise tax rate increases from 6.5% to 7.25%. This applies to companies with a business income tax base of more than $5 million. The corporate tax rate remains at 6.5% for companies with a business income tax base of $5 million or less.

As well, the City of Albany Municipal Code imposes a tax of 1% of gross income on every utility doing business in Albany. The penalty for failing to file this return within the time requirement is 5% of the amount of tax due, plus 1% for each month of delay.

If You Have a Taxable Estate

If your estate is worth more than $11.58 million, or $23.16 million if you’re married, your estate might get taxed up to 40% for surpassing that threshold. No one wants a huge portion of their estate going to the IRS instead of their heirs. This is why wealthy people involve tax lawyers in their estate planning process.

The estate of an Albany resident must file a New York State estate tax return if the estate value exceeds the basic exemption amount. For dates of death in 2021, the threshold is $5.9 million. However, for dates of death in 2022, the threshold increases to $6.1 million. The estate tax is graduated, with a maximum rate of 16%. Of note, the estate must file and pay any tax due within 9 months of the decedent’s death.

Work with an Experienced Tax Law Lawyer In Albany, New York

Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , New York tax law lawyers have the expertise you need. From conducting audits to defending you in court.  We can even help you connect with an attorney across New York state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!

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