Tax Law in Reno, NV

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 , Nevada 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 Nevada’s Department of Taxation (DOT), Reno residents do not have to pay state personal income tax. In fact, the DOT does not require informational copies of Reno residents’ federal income tax forms. However, SmartAsset reports that Reno residents have to pay a total sales tax rate of 8.265%. This total sales tax consists of 6.85% state sales tax and 1.415% Washoe County sales tax.

Tax Law Topics to Understand

If you find yourself facing , Nevada 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 Reno, Nevada 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 qualified Reno tax attorneys. 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 , Nevada 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 Reno, Nevada 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 Reno 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 in Reno can include a business failing to collect or remit sales tax to the state. Under Nevada law, the state imposes penalties for tax payment deficiencies in Reno. If these deficiencies result from fraud or intentional evasion of tax, a 25% penalty will be imposed. If the deficiency is due to negligence or disregard of law, the penalty decreases to 10%.

When Would You Need an Experienced Reno, Nevada 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 , Nevada 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 , Nevada 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.

The City of Reno reports that it is one of the most business-friendly cities in the nation. Specifically, Reno does not levy corporate income taxes, unitary taxes, franchise taxes, inventory taxes, or franchise taxes on income. In addition, the City of Reno works closely with the Governor’s Office of Economic Development to ensure businesses have access to tax incentive programs. These programs include tax abatements and hiring incentives, the historic tax credit program, and the new markets tax credit program.

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 Nevada’s Department of Taxation, Reno estates do not have to pay state estate tax if the date of death is on or after January 1, 2005. However, a Reno estate may still have to pay federal estate tax if the estate meets the minimum value threshold. For 2022, the $11.7 million federal threshold increases to $12.06 million.

Work with an Experienced Tax Law Lawyer In Reno, Nevada

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

Submit a request online or call us today at (866) 345-6784 to get in touch with experienced Reno tax attorneys!

How It All Works

Call us or answer the questions on this site. Your category, location, and additional information will help us connect you to a legal professional and we’ll send you the results instantly.

Which Areas of Law?

We have attorneys in over 20 legal categories to choose from.

How Much Does This Cost?

We don’t charge you to be connected. Some legal categories require upfront fees while others do not. The legal professional will determine this with you before you commit to anything.