Tax Law in Winston-Salem, NC

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 , North Carolina 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.

There are no city sales taxes for those living in Winston-Salem. However, residents still pay a total of 7% on all goods and services. This is due to a 4.75% state sales tax, and a 2.25% county sales tax. There are no special taxes in Winston-Salem.

Tax Law Topics to Understand

If you find yourself facing , North Carolina 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 Winston-Salem, North Carolina 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 Winston-Salem 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 , North Carolina 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 Winston-Salem, North Carolina 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 Winston-Salem 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

According to North Carolina Tax Law the penalty incurred for failing to pay taxes can range from fines to jail time. However, simply paying your income tax late can cause you to incur fees and late penalties. If your payment is too long in delinquency, the state can impose a maximum late penalty of 25%. This amount will be in addition to what you already owe.

When Would You Need an Experienced Winston-Salem, North Carolina 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 , North Carolina 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 , North Carolina 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 North Carolina Department of Revenue states that the corporate income tax rate in Winston-Salem is 2.5%. This is down from the previous high of 6.9% in 2013. The corporate income tax rate in North Carolina has been lowered in order to attract businesses and spur job creation in the state.

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.

Forbes Magazine reports that residents of Winston-Salem do not pay estate taxes. There are also no inheritance taxes for those in Winston-Salem. However, if you inherit property in another state that imposes estate taxes, you will be bound by the laws of that state.

Work with an Experienced Tax Law Lawyer In Winston-Salem, North Carolina

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

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