Tax Law in Chandler, AZ

WalletHub reports the average American spends 13 hours completing their taxes. The substantial time required is often due to the complexity of the system. Even using online services can leave Chandler residents wondering if they left money on the table.

Furthermore, the IRS is one of the scariest federal departments to investigate your finances. Audits can be painful, lengthy, and exhausting to handle alone.

If you need help, this article has answers. After you finish reading it, consider using one of the attorneys in our network to get our life back on track.

What is Chandler, Arizona Tax Law?

Tax law involves the rules and regulations that oversee computations, submissions, and payments. Attorneys handling tax law cases may engage with these issues at the local, state, and federal levels.

Hiring a qualified Chandler, Arizona professional can provide substantial assurances. Even a tiny error, such as a misplaced comma or extra zero, can create issues. Additionally, accountants may intentionally take actions that result in legal and financial consequences.

Here are some local tax laws that may be relevant to individuals or businesses located in Chandler:

• Sales Tax: There is a sales tax rate of 1.5% in addition to the state sales tax rate of 5.6%. As a result, the combined sales tax rate is 7.1%.
• Use Tax: Anyone who purchases taxable goods or services from outside the city may have to pay this levy on those items.
• Property Tax: The City of Chandler collects a property tax rate of $0.7963 per $100 of the assessed value.
• Business License Tax: Local companies must obtain a license and pay annually. The amount varies depending on the type of operation.

Tax Law Topics to Understand

Tax issues in Chandler, Arizona can be frustrating, but having a grasp of the law can help. Taxation is intricate, and most individuals only have basic knowledge of how they work. Nonetheless, small business owners must comprehend them and their impact on their business. Here are some crucial tax law topics to get started.

IRS Audits

The IRS conducts audits to verify the accuracy of financial records in Chandler, Arizona. These audits can reveal discrepancies that business owners did not know existed.

During an audit, the IRS looks for indicators that an individual’s lifestyle is consistent with their income. In addition, they will investigate whether “business expenses” are actually personal costs.

Overstating business expenditures is a frequent problem the federal government wants to stop. Furthermore, companies that deal with substantial amounts of cash can expect tighter scrutiny.

If you are facing a business audit, consider hiring a skilled Chandler tax law attorney. They will protect and steer you through this complicated and legally-fraught process.

Tax Evasion

Tax evasion means engaging in illegal behavior to reduce your tax liability in , Arizona. It involves two types of evasion, namely, evasion of assessment and evasion of payment.

Evasion of assessment is when a taxpayer undermines the amount of their taxation. A regular illegal practice that qualifies involves under reporting your income. Evasion of payment is when taxpayers avoid paying taxes by concealing money or assets.

More examples of tax evasion include:

• Exaggerating your eligible deductions
• Hiding the sources of your income
• Filing a fraudulent tax return
• Destroying monetary documents
• Creating erroneous invoices
• Controlling two sets of accounting books
• Keeping your property in someone else’s name to avoid taxes

If you have a conviction for tax evasion in Chandler, Arizona, you could face stiff penalties. You could become subject to substantial fines, imprisonment, or both.

Income Tax and Fraud

Tax fraud is a deliberate attempt to avoid or deceive the IRS and Chandler tax regulations. It happens when an individual or business carries out any of the following actions:

• Refusing to file a tax return
• Leaving income out of your paperwork
• Giving the IRS fake or falsified details
• Declining to pay your tax obligation

Under Arizona law, tax fraud can result in civil and criminal penalties. Here are some potential consequences for tax fraud in Chandler:

• Civil Penalties: Individuals or businesses guilty of tax fraud may face fines, interest, and additional taxes owed.
• Criminal Penalties: Tax fraud is typically a felony. The penalties can range from 2.5 to 12.5 years in prison, plus fines.
• License Revocation: Individuals or businesses may have their professional licenses revoked.

When Would You Need an Experienced Chandler, Arizona Tax Law Attorney?

Facing Legal Issues Regarding Taxes

If you are being investigated by the IRS or considering a lawsuit, talk to an experienced Chandler, Arizona tax attorney. They can assist you in gathering the necessary information and developing a defense strategy.

When Starting a Business

Beginning a business in Chandler, Arizona encompasses more than offering products or services. You must also determine the business type and structure. This designation decides how the business and your earnings get taxed. Furthermore, picking an inappropriate business structure can be costly.

Arizona imposes various tax laws on businesses operating in Chandler. These are some of the regulations, along with references to the specific statutes governing them:

• Arizona Revised Statutes § 43-101 levies the corporate income tax based on income.
• Arizona Revised Statutes § 42-5001 deals with the transaction privilege (TPT) tax. It depends on gross receipts and goes to the state or local government.
• Arizona Revised Statutes § 42-12001 is the property tax for real estate owned by businesses.

If You Have a Taxable Estate

If your estate exceeds $11.58 million (or $23.16 million for married individuals), it may be subject to up to 40% tax. No one wants their estate to go to the IRS instead of their heirs. That’s why affluent individuals include tax lawyers in their estate planning process.

Arizona does not currently have an estate tax. Senate Bill 1016 repealed it as of December 31, 2004. Therefore, estates from Chandler are not subject to this levy by the state government.

Work with an Experienced Tax Law Lawyer In Chandler, Arizona

Dealing with tax law problems can be daunting and stressful. However, hiring an experienced tax law attorney in , Arizona can alleviate this burden.

These lawyers have the expertise to conduct audits and defend you in court. Additionally, we can connect you with qualified attorneys across Arizona state lines.

Contact us today to talk to a skilled attorney near you. You only have to send a request through our website or call (866) 345-67843.