Tax Law in Bismarck, ND

Are you a Bismarck, North Dakota resident grappling with the complexities of tax law? Do you desire clarity, financial security, and peace of mind?

Don’t leave your financial well-being to chance. Continue reading our comprehensive guide to tax law for Bismarck.

What is , North Dakota Tax Law?

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.

If you hire a qualified , North Dakota 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.

North Dakota operates under a progressive income tax system. It features five tax brackets that span from 1.1% to 2.9% for individual income tax rates. Furthermore, North Dakota stands out because it does not impose a sales tax on most services. Nevertheless, it’s crucial to remain abreast of any changes in tax laws in Bismarck, which may evolve.

Tax Law Topics to Understand

If you find yourself facing , North Dakota 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 Bismarck, North Dakota 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 Bismarck 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 , North Dakota 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 Bismarck, North Dakota 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 Bismarck 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

Tax fraud in North Dakota constitutes a grave offense. Breaching these regulations can lead to criminal charges and substantial consequences. North Dakota’s tax authorities probe and pursue instances of tax fraud vigorously to safeguard the integrity of the state’s tax structure.

When Would You Need an Experienced Bismarck, North Dakota 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 , North Dakota 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 , North Dakota 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.

There are several notable tax laws applicable to businesses in Bismarck, ND:

• Corporate Income Tax: The corporate income tax rate is typically 4.31% of net income, but it may vary.
• Sales Tax: North Dakota has a statewide sales tax rate, and businesses in Bismarck are subject to this tax on most retail sales.
• Property Tax: Businesses in Bismarck are subject to property taxes levied by local governments.
• Use Tax: Businesses must remit use tax on items purchased out-of-state but used or consumed within North Dakota.
• Employment Taxes: Businesses must withhold and remit state income tax from their employees’ wages.

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.

North Dakota doesn’t levy its state estate tax. Nevertheless, it’s crucial to recognize that federal regulations may apply in Bismarck.

Work with an Experienced Tax Law Lawyer In Bismarck, North Dakota

Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , North Dakota 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 North Dakota 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!