Tax Law in Long Beach, CA

Tax season can often bring a sense of dread, filled with complex forms and the potential for overlooked deductions.

The stakes are high for tax law, as errors or misunderstandings can lead to audits, penalties, and financial stress. Whether you’re dealing with back taxes or tax dispute resolutions, legal help is invaluable.

Embrace the tax season with confidence, knowing you have expertise on your side. Explore state and federal law below and find a local attorney today!

What is , California 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 , California 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.

California’s tax regime, known for its progressive nature, significantly affects both individuals and businesses. The Revenue and Taxation Code lays out a variety of taxes, from personal income to sales and use. Personal income tax rates, notably high and based on a progressive scale, mirror the state’s principle of taxing according to the ability to pay. Meanwhile, the detailed provisions for sales tax outline how goods and services get taxed in Long Beach.

Tax Law Topics to Understand

If you find yourself facing , California 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 Long Beach, California 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 Long Beach 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 , California 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 Long Beach, California 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 Long Beach 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

California’s stance on tax fraud is resolute, with a detailed legal system to penalize deceitful acts. Offenses like under-reporting income, making false deductions, or not filing tax returns can lead to significant penalties. It includes fines and jail time, underscoring the state’s commitment to maintaining the integrity of its tax system.

When Would You Need an Experienced Long Beach, California 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 , California 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 , California 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.

In Long Beach, businesses must carefully manage their state tax responsibilities. This includes complying with corporate income taxes, sales and use taxes, and employment taxes. The collection of sales tax on goods and services stands out as a vital income stream for the state. The variability in corporate tax rates, based on business structure and earnings, further highlights the need for financial strategy.

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.

Long Beach residents have one less worry about estate planning due to the lack of state-level estate tax. This exemption streamlines creating a financial legacy, but the federal levy may apply.

Work with an Experienced Tax Law Lawyer In Long Beach, California

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