People who earn or receive income in the state of California are subject to both federal and state tax laws. If you fail to pay the taxes you owe, the state of California and/or the Internal Revenue Service will take legal action against you. For this reason, you need counsel from a qualified California tax attorney like James M. Sullivan.
Tax Law Basics
If you meet state or federal requirements for filing a tax return, you must do so each year. Your tax return will determine how much tax you owe to the IRS and/or the state of California, if any. If you owe tax, you must pay it by a specified deadline.
When you don’t comply with federal or state tax laws, many different legal issues may result. Some of the most common legal issues that involve tax law include:
- Late or unpaid taxes – Your tax payments are due on predetermined dates. If you don’t pay your taxes on time, the IRS or the state may add penalties and interest to your bill. They may also try to collect using garnishments, levies and other methods.
- Unfiled tax returns – If you are required to file a tax return by law and you fail to do so, you can be prosecuted for unfiled tax returns.
- Tax audits – If the IRS or the state of California questions some of the entries on your tax return, or if you are randomly selected, you may be subjected to an audit.
- Tax liens – If you owe delinquent taxes, the IRS or the state can place liens against your property.
Can a Tax Lawyer Help Me?
If you are dealing with a tax law issue, an experienced attorney may be able to help you resolve your problem. For example, if you owe money to the IRS or the state, a tax lawyer may be able to help you apply for a payment program or other type of tax relief. If you are facing an audit, a tax lawyer can help you prepare all of the required documentation and deal with the auditor’s questions. If you are struggling with a tax lien, levy or garnishment, a tax lawyer may be able to help you eliminate it.
Here at James M. Sullivan, Inc., we know how federal and state tax laws work. Contact us today to talk about your tax problem.