Tax Law in Baton Rouge, LA
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 , Louisiana 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.
Louisiana tax laws require Baton Rouge residents to pay state income tax on their earnings. The rate depends on your income level and can range from 2-6%. Keep in mind that your filing status can affect your tax rate as well. In addition to state income taxes, many Baton Rouge residents are subject to local property taxes. Both East Baton Rouge Parish and the City of Baton Rouge may tax your property, depending on its location. Fortunately, Louisiana’s homestead exemption may lower your tax liability. However, the exemption does not apply to municipal taxes.
Tax Law Topics to Understand
If you find yourself facing , Louisiana 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.
An IRS audit is a review of an experienced Baton Rouge, Louisiana 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 Baton Rouge tax law attorney. They can help you to navigate the complex process ahead and offer advice as issues arise.
Tax evasion refers to any activity an individual or business in , Louisiana 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 Baton Rouge, Louisiana 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 Baton Rouge 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
Louisiana tax evasion laws describe criminal penalties for intentional, and fraudulent failure to pay your state taxes. Baton Rouge tax evaders can face fines of up to $2,000. In addition, your sentence can include up to two years in prison, with the additional possibility of hard labor.
When Would You Need an Experienced Baton Rouge, Louisiana 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 , Louisiana 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 , Louisiana 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 Louisiana Department of Revenue, Baton Rouge businesses may be subject to the state’s corporation income tax and/or a corporation franchise tax. Traditional C corporations and some S corporations typically have to pay both taxes. Louisiana made significant changes to its corporate tax laws in 2019, which affected many businesses’ tax liabilities. In addition, East Baton Rouge Parish collects occupational license taxes from businesses in the parish. The rates are dependent on the type of business and annual sales totals.
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.
Louisiana is one of the many states that does not levy an estate tax. However, under Louisiana legislation, you may still have to file a state tax return for a Baton Rouge estate. If the estates value $60,000 or more, you must file a return. Even though you will not owe state taxes, you are still responsible for the federal estate tax if the estate meets the federal threshold.
Work with an Experienced Tax Law Lawyer In Baton Rouge, Louisiana
Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , Louisiana 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 Louisiana 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!