What is a tax? The answer is simple tax is the payment of one’s income or output to the government based on a tax computation. Tax law or revenue law is a field of criminal law study where public or unofficial authorities, like municipal, state, and national governments utilize a complex body of rules and laws to assess and collect taxes from citizens in a formal legal framework. In simple terms, the tax is money that is owed by an individual or entity to the government and is collected from its users. The collection and assessment of taxes are performed through government agencies such as the Internal Revenue Service or IRS, which function under the U.S. tax code. Other government organizations, including state and local governments, as well as private agencies such as individual households also function as tax collecting agencies.
As mentioned, tax law covers many different areas of tax law and taxation, and these include Federal, State, and Local taxation. Among these, the most common types of taxes include Income Taxes (in addition to Capital Gains), Employment Taxes, Sales Taxes, Value-added Taxes, and Franchise Taxes. The IRS, together with state taxing bodies, compile these forms of taxes into different schedules to levy revenues against individuals and businesses for payment. This is where tax attorneys and accountants come into play.
Tax attorneys and accountants offer their services to individuals or businesses with back taxes, as well as corporations. They advise clients and provide options for those who owe back taxes or who are looking for tax forgiveness. Some tax professionals work exclusively with taxpayers, while others may work as part of a team with a number of different clients. In addition to helping taxpayers navigate the tax bureaucracy, tax attorneys and accountants also ensure that tax returns are filed on time and for the correct amount, and with the correct tax amount, in order to reduce the amount of back taxes.
One of the many reasons why people seek the help of tax attorneys and accountants is to resolve tax debts. Some simply cannot repay what they owe the IRS, which results in penalty fines and increased tax debt. Other tax debts are non-repayable, which means that they can never be collected. In either case, tax attorneys and accountants can help clients settle their tax debts by working to settle the matter outside of the court system. These professionals usually work with a client’s tax burden through negotiation and can help them avoid court proceedings and the possibility of being forced to pay back taxes.
Some tax attorneys and accountants work exclusively with criminal attorneys and in instances where tax crimes have been committed, assist their clients in preparing for their criminal defense. In some cases, they help prepare the necessary documents for their defense, including preparing statements under oath. Others provide legal assistance to individuals charged criminally with tax fraud, including schemes to evade tax payments. In other instances, they work with clients facing criminal charges related to tax evasion, like making false tax statements, or aiding and abetting in tax fraud.
Regardless of which type of tax attorney or accountant one chooses to work with, it’s important to carefully research all of their credentials and references. This will ensure that they have relevant experience and can handle all of the clients’ tax problems, including tax investigation and defense. It’s also important to ask about the services that the attorney or accountant will provide to help protect the confidentiality of any client information. Clients should also ask if the attorney or accountant plans on offering any refunds and, if so, how quickly they will be.
This article was written by Alla Tenina. Alla is one of the best tax attorneys in Los Angeles California, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.