Tax Law in Savannah, GA
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 , Georgia 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.
Georgia levies a personal income tax on most Savannah residents. For the majority of taxpayers, the rate is 5.75%, although the rate drops if you make less than $7,000. In addition, if you own property in Savannah, you must pay property taxes. These are a combination of city, county, and other tax districts. The rate for 2021 is $17.73 per $1,000 of assessed value. Furthermore, Savannah adds 3% to the 4% state sales tax, for a total of 7% on most purchases.
Tax Law Topics to Understand
If you find yourself facing , Georgia 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 Savannah, Georgia 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 Savannah 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 , Georgia 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 Savannah, Georgia 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 Savannah 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 Georgia law, Savannah tax evasion is a felony if it involves at least $3,000. The sentence includes a fine of up to $100,000 for individuals and $500,000 for corporations. In addition, you could end up in prison for as long as 5 years.
When Would You Need an Experienced Savannah, Georgia 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 , Georgia 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 , Georgia 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.
Georgia has two state business taxes: a corporation net worth tax and a corporate income tax. The net worth tax applies to C corporations, S corporations, and LLC’s. They will pay anywhere from $0 to $5,000 depending on their capital stock, surplus, and retained earnings. In addition, traditional C corporations are also subject to a flat rate income tax of 5.75%. On top of these state taxes, Savannah businesses must pay property taxes. According to the Savannah Economic Development Authority, these taxes apply to both real and personal property.
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 Georgia Department of Revenue, there is no state tax on Savannah estates. However, large estates are still subject to the federal tax if they meet the threshold.
Work with an Experienced Tax Law Lawyer In Savannah, Georgia
Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , Georgia 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 Georgia 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!
