Tax Law in Trenton, NJ
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 Jersey 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.
An additional concern for Trenton residents can be penalties under the New Jersey Gross Income Tax Act. For example, an insufficient payment can lead to an addition of 10% to the deficiency amount. In other cases, you can wind up paying as much as 100% of what you owe.
Tax Law Topics to Understand
If you find yourself facing , New Jersey 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 Trenton, New Jersey 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 Trenton 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 , New Jersey 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 Trenton, New Jersey 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 Trenton 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
New Jersey’s Division of Taxation has an Office of Criminal Investigation that investigates fraudulent state filings. As for the federal U.S. Code, a conviction calls for fines of up to $100,000 with a five-year prison sentence.
When Would You Need an Experienced Trenton, New Jersey 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 Jersey 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 , New Jersey 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 Trenton requires that entrepreneurs prove they have paid property taxes before obtaining a license. The same also applies to renewing the privilege of conducting business in the city. It can be easy to take local issues for granted while you’re dealing with state or federal tax concerns. However, doing so can also mean that you miss out on exemptions or other incentives.
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 New Jersey Department of Taxation, the state had an estate tax from 1892 to 2018. However, inheritances for Trenton residents no longer incur this type of levy from the state government. Still, qualifying estates may have to pay a federal estate tax.
Work with an Experienced Tax Law Lawyer In Trenton, New Jersey
Facing issues related to tax law can feel overwhelming. No one wants to go head-to-head with the IRS. Experienced , New Jersey 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 Jersey 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!