Navigating tax laws in Jonesboro, AR, can feel overwhelming. The maze of regulations and deadlines requires careful attention and expertise.

Imagine having an expert to guide you, transforming complex tax issues into manageable tasks. This support can significantly reduce stress and uncertainty. 

Acting promptly is crucial in tax matters. Waiting or ignoring issues can result in penalties and increased stress.

It’s time to seek legal advice. Taking the first step towards resolving tax issues begins here.

What is , Arkansas Tax Law?

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.

If you hire a qualified , Arkansas 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.

In Jonesboro, personal income tax rates vary from 2% to 5.9%, depending on the income level. Sales tax in the state stands at 6.5%, but localities can add their own sales taxes on top. Arkansas also imposes a property tax, though it’s low compared to other states. The state offers tax credits for various purposes, including education and childcare, to ease the financial burden.

Tax Law Topics to Understand

If you find yourself facing , Arkansas 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.

IRS Audits

An IRS audit is a review of an experienced Jonesboro, Arkansas 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 Jonesboro tax law attorney. They can help you to navigate the complex process ahead and offer advice as issues arise.

Tax Evasion

Tax evasion refers to any activity an individual or business in , Arkansas 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 Jonesboro, Arkansas 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 Jonesboro 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 Jonesboro, tax fraud laws target actions like failing to file tax returns, filing false returns, or evading tax payments. Penalties for such offenses can range from fines to imprisonment, depending on the severity of the fraud. Common examples include underreporting income, claiming false deductions, and not reporting sales tax.

When Would You Need an Experienced Jonesboro, Arkansas Tax Law Attorney?

If you’re under investigation from the IRS or planning a lawsuit against, you will need a qualified , Arkansas 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 , Arkansas 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.

Arkansas imposes several taxes on businesses in Jonesboro, including corporate income taxes. Businesses also must adhere to sales and use taxes, which apply to most goods and certain services. Additionally, Jonesboro businesses may be subject to local taxes and business license fees.

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.

Arkansas does not impose an estate tax. Jonesboro residents won’t face state-level taxes on the transfer of an estate’s assets after death. However, federal levies might apply.

Work with an Experienced Tax Law Lawyer In Jonesboro, Arkansas

Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , Arkansas 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 Arkansas 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!