What is tax law?
A complex of rules and process are used by public or sanctioned authorities, including the federal, state and municipal government, to assess and collect taxes in a legal environment. This field of law is known as tax law or revenue law. Tax attorneys help their client (such as private citizens, businesses or the government) determine ow to reduce their tax liabilities. The majority of tax work is non contentious, however, tax attorney working for HM Revenue & customs (HMRC) are involved in looking into any legal violations and prosecuting people or businesses or defending the government in court. We will discuss more about tax, tax attorney & attorney for tax relief in this blog post
A tax lawyer, usually referred to as tax attorney, is a lawyer with a focus on taxes. The main task of tax lawyer includes conducting analyses for tax view point, counselling clients on the tax repercussions of particular transaction and disputing the tax treatment of disputed tax positions. Cross border deals, M&A support, real estate deals, and work with mutual funds are all examples of transactional business. In the event of tax fraud, criminal actions may also be pursued in addition to tax litigation in the tax court, federal district court or court of federal claims.
A tax attorney employs their understandings of tax laws to help clients in tax related difficulties. They can assist individuals in dealing with the IRS, filing an appeal, utilizing tax incentives or saving business money. Tax attorney represent their clients as advocates, helping them with both straightforward issues like tax return deductions and more complex ones like defending them in tax court. In brief, attorney for tax relief use their specialist knowledge to assist clients who lack the tax expertise necessary to assist themselves.
Difference between CPA & Tax Attorney:
Certified Public Accountant have at least 150 hours of education and hold five-year business degree. Additionally, they passed the rigorous CPA exam and continue to complete 120 hours of continuing education every three years. A CPA is not a kind of person you find at a typical chain like H&R Block or liberty tax. These are the people who have been trained somewhere between 60 to 80 hours. Preparing taxes requires significantly more expertise and knowledge from a CPA.
Despite the fact that both aid taxpayers, a tax attorney and CPA are different professions. Professionals with a law degree are known as tax attorneys. They specialize in legal aspect of tax preparation and have passed the state bar exam and they are also called attorney for tax relief. While tax attorney and certified public accountants both have the ability to represent your best interest when communicating with IRS, hiring a tax attorney is typically a better option if you are having issues with the tax authorities, such as owing thousands of dollars in unpaid taxes or facing liens or levies.
What is tax relief?
Any government program or policy designed to assist individuals and businesses in reducing their tax burdens or revolving tax related debts is referred to as tax relief. Relief from taxes can come in the form of general tax cuts, targeted programs that help particular group of taxpayers, or initiatives that support specific government objectives. For instance, the tax credit for environment friendly improvements, such as energy efficient windows, advance the goal of U.S, energy independence and cleaner air, while the child tax credit provides a tax break to parents of minor children.
Types of Taxes:
Individual Income tax:
Taxes based on what you earn, what you spend, and what you own. It is essential to keep in mind that every dollar you pay in taxes is derived from income. The point of collection or when you pay the tax is the one of main difference between the other types. A tax on person’s annual wages, salaries, dividends, interest and other income is called the individual tax income. The state in which income is earned typically impose the taxes. A tax on a person’s annual wages, salaries, dividends and interests is called individual income tax. Even if a person’s income below the exemption limit, anyone with a valid PAN can file IT return, but businesses must file an ITR. An income tax return is available to individuals whose taxable income is greater than the maximum amount not subject to tax. For individuals under the age of 60, exemption limit is RS, 2.5 Lac. The exemption limit for other citizens is Rs. 3 Lacs and Rs. 80 for senior citizen over 80.
Corporate Income Tax:
On business profits, the federal and state governments levy a corporate income tax. Because they are taxed pass- through business with income that must be reported under the individual income tax, many businesses are exempt from the CIT. 25% corporate tax are due from a domestic corporate entity with a turnover of less than Rs. 250 crores. A corporation is subject to a corporate tax surcharge of 5% during a fiscal year if its total revenue exceeds one crore. A 4% health and educational is also due from domestic corporations. A corporate tax is a tax on a corporation’s profit or net income. A company’s revenue after deducting expenses such as COGS and selling & administrative expenses and other are included in its taxable income, which is subject to corporate taxation. Corporate tax is due from private and public companies that are registered under the companies act 1956. Domestic business pay 30% tax for the assessment in the year on net income.
Tax Attorney for Tax relief:
New York state and IRS audits, an IRS Ivey, or IRS tax liens can all be handled by the tax attorneys. Tax attorney can provide audit defense during the criminal tax investigation if an audit reveals any criminal activity. The tax attorney can help you to prove that you are not guilty of international tax fraud and correct any tax errors that led to the IRS audit. Tax attorney helps the individuals to get the tax relief by the individual or companies by reducing their tax burdens or resolving tax related debts is referred to as tax reliefs.