Tax Law in Jacksonville, FL
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 , Florida 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 Florida Constitution prohibits state personal income taxes. This makes Florida one of the 7 states that do not assess a personal income tax. However, the City of Jacksonville does tax residents in other ways. For example, most purchases are subject to a 7.5% sales tax. In addition, the city imposes property taxes on real property. However, there is an exemption for $50,000 of value in your primary residence.
Tax Law Topics to Understand
If you find yourself facing , Florida 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 Jacksonville, Florida 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 Jacksonville 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 , Florida 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 Jacksonville, Florida 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 Jacksonville 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
Since Florida does not have a state income tax, personal income tax fraud in Jacksonville is a federal crime. Federal tax fraud convictions can result in individual fines of as much as $100,000 and up to 5 years in prison. However, the state crime of tax fraud still exists in Florida. Typically, this charge involves fraud in the collection of sales tax or corporate income tax evasion.
When Would You Need an Experienced Jacksonville, Florida 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 , Florida 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 , Florida 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.
Florida, like most states, has a Corporate Income Tax. The tax applies mainly to C corporations, although other entities may still have to file a return. For 2021, the tax rate is 3.535%, but it will increase to 5.5% in 2022. In addition, most Jacksonville businesses must pay a Local Business Tax, regardless of organization type. Furthermore, they are subject to 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 Florida Department of Revenue, Florida does not assess a state estate tax on Jacksonville estates. A 2005 change in federal law made the Florida estate tax statute inoperable, even though it is still a valid law.
Work with an Experienced Tax Law Lawyer In Jacksonville, Florida
Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , Florida 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 Florida 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!