Tax Law in Cincinnati, OH
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 , Ohio 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 City of Cincinnati levies a tax of 2.1% against the personal income of all its residents. This is in addition to the state income taxes you have to pay. With Ohio’s progressive tax rates, depending upon income, those living in Cincinnati can wind up paying as much as nearly 7% of their income to the state and local governments in Ohio.
Tax Law Topics to Understand
If you find yourself facing , Ohio 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 Cincinnati, Ohio 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 Cincinnati 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 , Ohio 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 Cincinnati, Ohio 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 Cincinnati 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
Fox 19 reports that the local CEO of a non-profit in Cincinnati was recently found guilty of tax fraud and sentenced to 4 years in prison. The fraud occurred when the CEO withheld FICA taxes for employees on paper, but did not pay employment taxes for 5 quarters. If you suspect tax fraud, or have knowledge of a fraudulent event, you can report it to the Cincinnati Branch of the IRS.
When Would You Need an Experienced Cincinnati, Ohio 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 , Ohio 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 , Ohio 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.
CPA Assurance states that regardless of the residence of a business owner, all Cincinnati businesses have to file corporate income tax returns. While Ohio does not levy corporate taxes at the state level, local municipalities are free to do so. In Cincinnati, the corporate income tax rate is 2.1%.
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.
Estate Tax Statutes were repealed in Ohio in 2013. This means that if a loved one passes away, and leaves you a portion of their estate, the state government won’t try to take part of the inheritance or bequeathment. However you may want an experienced Cincinnati attorney when dealing with issues such as these.
Work with an Experienced Tax Law Lawyer In Cincinnati, Ohio
Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , Ohio 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 Ohio 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!