Tax Law in Jackson, MS
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 , Mississippi 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.
Jackson residents are subject to Mississippi’s Individual Income Tax. The rate is 5% for most people. However, lower rates apply for annual income under $10,000. The Mississippi legislature is considering the possibility of phasing out the state’s income tax. However, as of 2021, the tax is still in effect. Jackson residents must also pay property taxes. The Hinds County Tax Assessor determines the value and assigns the tax for each location.
Tax Law Topics to Understand
If you find yourself facing , Mississippi 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 Jackson, Mississippi 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 Jackson 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 , Mississippi 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 Jackson, Mississippi 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 Jackson 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
Mississippi Tax laws treat tax fraud and evasion in the same manner as federal laws. Under either code, the penalty can include a fine of $100,000 for individuals or $500,000 for corporations. In addition, the court can sentence you to up to 5 years in prison.
When Would You Need an Experienced Jackson, Mississippi 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 , Mississippi 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 , Mississippi 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.
Mississippi has two types of Business Taxes. Both S and C corporations in Jackson must pay the state’s franchise tax. This tax is $2.50 for every $1,000 of capital or property in the state. In addition, C corporations are also subject to a corporate income tax. The rate is the same as for individuals, so 5% of income over $10,000. In addition to state taxes, most Jackson businesses must obtain a City Business License. They must also pay Property Taxes on both real and personal property.
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.
According to the Mississippi Department of Revenue, there is no state estate tax for deaths after 2004. However, this does not affect the federal tax liability of Jackson estates that meet the $11.58 million threshold.
Work with an Experienced Tax Law Lawyer In Jackson, Mississippi
Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , Mississippi 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 Mississippi 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!