Tax Law in Bozeman, MT

Getting through the terrain of tax law without getting tripped into pitfalls can be daunting. This guide will be your roadmap with insights and strategies tailored to Bozeman residents.

Explore tax-saving strategies, legal obstacles, and proactive measures to defend your assets today!

What is , Montana 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 , Montana 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.

Montana boasts a unique tax landscape shaped by its commitment to economic growth. Residents benefit from a relatively low state-income tax rate, with a top marginal rate of 6.9%. Additionally, Montana levies a statewide sales tax exemption. Homeowners in Bozeman also enjoy property tax relief through various exemptions and credits.

Tax Law Topics to Understand

If you find yourself facing , Montana 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 Bozeman, Montana 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 Bozeman 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 , Montana 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 Bozeman, Montana 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 Bozeman 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

Penalties for tax fraud in Montana can range from substantial fines to imprisonment. The sentencing depends on criminal history and the severity of the offense.

When Would You Need an Experienced Bozeman, Montana 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 , Montana 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 , Montana 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.

Montana imposes corporate income tax on businesses in Bozeman, ranging from 3.9% to 6.75%. Additionally, companies should plan for the equipment tax, which applies to tangible property used for operations.

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.

Bozeman does not levy state estate taxes. However, federal estate tax laws may apply to estates in Bozeman.

Work with an Experienced Tax Law Lawyer In Bozeman, Montana

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