Tax Law in Raleigh, NC
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 , North Carolina 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.
North Carolina, like most states, imposes an Individual Income Tax on Raleigh residents. Unlike the federal tax, however, they use a flat rate, rather than basing it on income level. The North Carolina personal income tax rate for 2021 is 5.25%. However, this rate will decrease to 4.99% for the 2022 tax year. In addition, Raleigh property owners must pay Wake County property taxes. Furthermore, most purchases in Raleigh are subject to a 7.25% sales tax.
Tax Law Topics to Understand
If you find yourself facing , North Carolina 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 Raleigh, North Carolina 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 Raleigh 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 , North Carolina 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 Raleigh, North Carolina 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 Raleigh 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
Tax fraud or evasion in Raleigh can be both a civil and criminal offense. The civil fines are dependent on the amount of tax in question. They range from 5% to 50%. However, willful tax evasion constitutes a class H felony. A conviction that can land you in jail for 4-25 months.
When Would You Need an Experienced Raleigh, North Carolina 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 , North Carolina 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 , North Carolina 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.
North Carolina levies both a franchise tax and corporation income tax on certain types of Raleigh businesses. The franchise tax is typically applicable to both C and S corporations. In addition to the franchise tax, C corporations must also pay a 2.5% income tax. On top of these state taxes, your business may also be subject to Wake County Business Taxes. These can include property taxes on both real and personal property. Furthermore, certain types of business, such as restaurants, hotels, and liquor stores, must pay a tax on their gross receipts.
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.
As of 2013, North Carolina does not have a state Estate Tax. However, some large Raleigh estates are still subject to the federal estate tax. But, only if they meet the threshold value.
Work with an Experienced Tax Law Lawyer In Raleigh, North Carolina
Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , North Carolina 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 North Carolina 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!