Tax Law in Rochester, NY

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 , New York 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.

Rochester residents must file and pay New York State income tax. However, the City of Rochester does not impose a city income tax. However, Rochester does impose a two-tiered property tax. One, two and three family residential properties are taxed at the Homestead Rate. All other properties are taxed at the higher Non-Homestead Rate. The City tax bill also includes charges for embellishments, such as road plowing and sidewalk repair.

Tax Law Topics to Understand

If you find yourself facing , New York 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 Rochester, New York 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 Rochester 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 , New York 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 Rochester, New York 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 Rochester 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

The NYS Tax Department will accept online reports of suspected tax fraud from Rochester residents. Tax fraud in Rochester can include a business failing to remit sales tax. According to New York State’s Department of Taxation and Finance, two Monroe County business owners pleaded guilty to charges of grand larceny for stealing sales tax. Both owners face five years of probation. Additionally, they must pay restitution in the amount they stole.

When Would You Need an Experienced Rochester, New York 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 , New York 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 , New York 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 NYS Department of Taxation and Finance, businesses in Rochester generally pay a state corporate franchise tax.  New York’s corporate franchise tax rate is currently 7.25% for Rochester companies with taxable income of more than $5 million. For an income tax base of $5 million or less, Rochester companies will pay 6.5%. Although the City of Rochester does not impose a general business tax, the City does require certain businesses to obtain Business Permits.

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.

Rochester estates that exceed the minimum value threshold must pay New York State estate tax. If the decedent passed away in 2021, the threshold is $5.9 million. However, for dates of death in 2022, the threshold increases to $6.1 million. Keep in mind, the Rochester estate must file and pay any tax due within 9 months of the decedent’s death.

Work with an Experienced Tax Law Lawyer In Rochester, New York

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