Tax Law in Columbia, SC
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 , South Carolina 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.
While many tax concerns focus on state or federal laws, local legislation can significantly affect your situation. For example, the Columbia Code of Ordinances assigns a tax to the new owners of property from bankruptcy. There are also benefits you may not have taken advantage of for a small business. In particular, the City of Columbia offers tax incentives for opening corporate headquarters.
Tax Law Topics to Understand
If you find yourself facing , South Carolina 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 Columbia, South Carolina 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 Columbia 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 , South Carolina 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 Columbia, South Carolina 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 Columbia 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
In June 2021, the South Carolina Department of Revenue arrested a man from Columbia for tax fraud. Each of the 16 counts the state charged him with can lead to a $10,000 fine and one year in prison. In total, a case like this one could result in $160,000 to the state and over a decade behind bars. If you’re concerned that you may have broken criminal tax law, speaking to an attorney is a necessary and immediate concern.
When Would You Need an Experienced Columbia, South Carolina 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 , South Carolina attorney who practices tax law. To illustrate, counsel can help collect the information you need and create a viable defense.
There’s more to starting a business in , South Carolina 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.
Starting a new enterprise in Columbia involves following its business license ordinance for taxes and fees. Depending on the nature of your company, there can also be fees for hospitality or tourism-based businesses. If you have questions about the law, calling the Finance Department may provide some answers. However, speaking to legal counsel will also help you understand the scope of your potential state and federal obligations.
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.
Generally, estates in Columbia are not subject to taxation from the state government. The Department of Revenue does not expect filings for decedents that pass on or after January 01, 2005.
Work with an Experienced Tax Law Lawyer In Columbia, South Carolina
Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , South Carolina 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 South Carolina 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!