Tax Law in Lafayette, LA

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 , Louisiana 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.

According to the Louisiana Department of Revenue, Lafayette residents must pay state income tax. Depending on income level, single filers face tax rates ranging from 1.85% to 4.25% effective January 1, 2022. These rates have decreased from the previous range of 2% to 6%. In addition, Louisiana law allows for a six-month extension of time to file an individual return.

Tax Law Topics to Understand

If you find yourself facing , Louisiana 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 Lafayette, Louisiana 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 Lafayette 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 , Louisiana 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 Lafayette, Louisiana 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 Lafayette 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

Under Louisiana law, a Lafayette resident commits a felony when they intentionally and fraudulently fail to pay state taxes. Lafayette tax evaders can face fines of up to $2,000. They can also face up to two years in prison, with or without hard labor. You can report tax fraud to the Louisiana Department of Revenue Criminal Investigations Division.

When Would You Need an Experienced Lafayette, Louisiana 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 , Louisiana 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 , Louisiana 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.

According to the Louisiana Department of Revenue, all Lafayette corporations taxed as corporations for federal purposes must file a state income tax return. This rule applies even if the Lafayette corporation does not have any net income. For 2021, corporations must pay tax on net income at rates ranging from 4% to 8%. After January 1, 2022, the tax rates will range from 3.5% to 7.5 %. Unlike most cities in the Lafayette Parish, the City of Lafayette does not levy occupational license taxes on businesses.

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 Louisiana Department of Revenue, Louisiana imposes an estate transfer tax on certain Lafayette estates. Specifically, the estate transfer tax is only imposed on estates that are subject to federal estate taxation. The amount of the state estate tax is equal to the federal estate tax credit allowed for state death taxes. Under Louisiana law, a Lafayette estate must file an estate transfer tax return when estate transfer tax is due. The estate must also file a return if the estate is worth $60,000 or more.

Work with an Experienced Tax Law Lawyer In Lafayette, Louisiana

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