Tax Law in Spokane, WA
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 , Washington 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.
The Washington Homeowners’ Guide to Property Tax provides an overview of the property taxes that counties across the state impose. In Spokane County, all real and personal property is subject to tax based on its value, unless exempted by law. The Spokane County Assessor appraises property in Spokane and sets the levy rate. However, Washington State imposes two tax rate limitations – the one-percent constitutional limit and the levy limit. According to SmartAsset, Spokane County’s average effective property tax rate is 1.15%, higher than the state average of 0.93%.
Tax Law Topics to Understand
If you find yourself facing , Washington 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 Spokane, Washington 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 Spokane 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 , Washington 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 Spokane, Washington 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 Spokane 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 Washington law, anyone who commits tax fraud in Spokane faces serious consequences. Specifically, this offense can be charged as a class C felony. Upon conviction, the offender can face 1 to 5 years in jail, along with fines up to $10,000.
When Would You Need an Experienced Spokane, Washington 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 , Washington attorney who practices tax law. To illustrate, counsel can help collect the information you need and create a viable defense.
There’s more to starting a business in , Washington 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.
Washington State does not impose a corporate income tax on businesses in Spokane. However, Washington does impose a Business & Occupation Tax on gross income. In addition, the City of Spokane provides a list of all the taxes that a Spokane business might have to pay. For example, Spokane County assesses and collects all commercial property tax. In addition, Spokane levies a 6% utility tax on the gross income of all businesses selling, wheeling, or furnishing electric light or power. Furthermore, businesses that sell or furnish water for hire must pay a 20% tax on gross income.
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 Washington State Department of Revenue, only certain Spokane estates must pay Washington estate tax. Specifically, estates that meet the $2,193,000 minimum threshold will pay anywhere from 10% to 20%, depending on the estate value. Estates must file and pay taxes within 9 months of the date of death. Estates may request a six-month extension for filing, but they must make an estimated payment when tax Is due.
Work with an Experienced Tax Law Lawyer In Spokane, Washington
Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , Washington 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 Washington 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!