Income Tax Law

Income tax law can be one of the most confusing areas of law to deal with. Preparing your income tax return requires an understanding of many technical terms, such as "gross income", "adjusted gross income", and "deductions". Also, income tax laws may vary according to state as well as the nature of your assets and monetary income.

For these reasons, many people choose to hire an income tax lawyer to assist them with tax issues. A tax attorney can help review your tax statements to ensure that they comply fully with federal and state tax requirements. Compliance with tax laws becomes even more important if you are selected for a tax audit.

Income tax audits are performed if the federal (e.g. the Internal Revenue Service) or state agency suspects that your tax statements are incorrect or fraudulent. Income tax audits involve meetings with an IRS officer or other tax personnel. You may be required to furnish proof that your previous statements and deductions were correct. An experienced tax attorney can provide counseling on how to supply the necessary documents for a tax audit.

Finding the Right Income Tax Lawyer

Further tax investigations can require you to make an appearance in tax court. For example, if the IRS demands back payments after a tax audit, disputes over the amount will be heard in tax court. Your attorney can assist you in obtaining an "offer in compromise". This is an agreement that basically allows you to pay less than the full total of back taxes that are owed. Another option is an installment payment agreement, wherein the government allows the person to make tax payments in installments.

Violations such as income tax fraud, failing to file a tax return, and tax evasion are associated with serious legal consequences. These may include mandatory fines and possibly jail time for serious offenses. Many income tax law violations can easily be avoided through proper legal counseling.