Tax Law in Boca Raton, FL

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 , Florida 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.

The Florida Constitution prohibits the assessment and collection of a state income tax. However, the Florida Tax Guide reports that the state does impose a state sales tax of 6%, with exceptions for groceries and medicine. In addition, Palm Beach County levies an additional 1% county sales tax. Consequently, the effective sales tax rate in Boca Raton is 7%.

Tax Law Topics to Understand

If you find yourself facing , Florida 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 Boca Raton, Florida 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 Boca Raton 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 , Florida 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 Boca Raton, Florida 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 Boca Raton 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

If you have information about Florida tax fraud occurring in Boca Raton, you can report it to the Florida Department of Revenue. In fact, you may also apply for compensation for the information that you provide. To do so, you must submit the Application for Compensation for Tax Information. Florida tax fraud can include failing to remit sales tax, or fuel taxes on motor fuel, diesel fuel, and aviation fuel.

When Would You Need an Experienced Boca Raton, Florida 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 , Florida 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 , Florida 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.

The City of Boca Raton levies a business tax of $105 per year. This tax is for the privilege of engaging in or managing any business, profession or occupation within Boca Raton. The business must pay the tax annually before September 30th. Failure to do so will result in escalating monthly penalties added to the tax due. For example, payment in October will result in a 10% penalty, and payment in November results in a 15% penalty. Any business that does not pay the required tax prior to March 1 is subject to an additional penalty of $250 and administration costs.

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.

Florida does not impose a state estate tax on a Boca Raton estate if the decedent died on or after January 1, 2005. However, the Florida Department of Revenue reports that a state lien can still automatically attach to the estate. To release the Florida estate tax lien, the personal representative must file an affidavit stating that no Florida estate tax is due.

Work with an Experienced Tax Law Lawyer In Boca Raton, Florida

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