Tax law is an important field of law that covers a broad range of topics. From personal income taxes to corporate tax laws, almost every type of legal issue will require having some basic knowledge of federal, state, and/or local tax codes. Examples of items that are commonly affected by tax laws include the following:
- Income;
- Businesses;
- Licenses;
- Punitive damages awards;
- Prizes from contests or game shows;
- Inheritance or gifts;
- Payroll taxes (e.g., Social Security, Medicare, etc.);
- Sales transactions;
- Luxury goods and foreign imports; and
- Real estate, property, and land.
As is evident from the above list, tax laws may have an impact on many different areas of your daily life. Whether you own property, are employed, or are simply purchasing items in a convenience store, taxes and their accompanying laws apply to all sorts of transactions.
Therefore, it is crucial that you understand which tax laws affect you personally. If you do not, it is important to contact someone like a tax attorney who will be able to advise you on the kinds of taxes you may owe to the government each year. Additionally, it is important to note that tax laws are subject to change on an annual basis. Thus, you may need to consult a tax professional and/or review the tax laws relevant to your issue at least once per year.
What are Some Common Tax Law Disputes?
As discussed above, tax law covers a wide variety of subjects. Therefore, it is unsurprising that tax law issues frequently come up in connection with many different kinds of legal disputes. The following list provides some common examples of legal disputes that specifically focus on tax law issues, including:
- Tax collection;
- Tax evasion;
- Tax exemption;
- Tax fraud;
- Problems with tax audits;
- Disputes over incomes taxes;
- Disputes over payroll taxes;
- Unpaid property taxes;
- Tax basis in gifts or estate inheritance;
- Conflicts with international tax law; and/or
- Various other kinds of tax-related disputes.
Despite the fact that there are numerous reasons as to why a tax law dispute may arise, many of these types of disputes will contain the same or similar issues. These include not paying taxes, paying too much in taxes, or underpaying taxes.
What are Some Different Types of Tax Law Attorneys?
Since tax law covers such a wide range of legal issues, there are many different types of tax law attorneys that a person can hire to help them resolve their particular tax problem. Some examples of the various kinds of tax law attorneys that an individual may be able to choose from include:
- Corporate Tax Lawyers: Corporate tax lawyers specifically focus on taxes that affect business entities, such as a partnership or a S corporation. These types of lawyers can assist corporate owners in structuring their business, filing tax returns, and determining which taxes need to be paid when selling or winding up a business.
- Income Tax Lawyers: Income tax lawyers can assist both individuals and businesses in settling tax-related disputes. For instance, if an individual is being penalized by the U.S. Internal Revenue Service (“IRS”) for not paying their federal income taxes, then an income tax lawyer can communicate with the IRS on their behalf or represent them during administrative hearings.
- International Tax Lawyers: International tax lawyers specialize in business and international tax laws. Such lawyers have knowledge of various treaties that the United States has entered into with other countries and which dictate the ways that a U.S. company may be taxed if they have satellite offices in other countries.
- Property Tax Lawyers: Property tax lawyers handle a whole host of tax-related issues. For instance, a person may want to consult with a property tax lawyer when they are buying or selling a house. Another reason that a person may need to hire a property tax lawyer is if they believe that their state or local government has improperly calculated the amount of taxes that they owe on their property.
- Tax Evasion Lawyers: Tax evasion lawyers are typically retained to mitigate the civil penalties that an individual or entity may be facing due to misrepresenting or underpaying their taxes. Such actions can also result in criminal punishment.
In addition, any lawyer that handles cases in which an individual receives a punitive damages award, such as a personal injury lawsuit, will require that lawyer to have basic knowledge of how much the prevailing party owes in taxes on that award. The same holds true for taxes regarding attorneys’ fees, some settlement damages, and awards in class action lawsuits.
Does Montana Have Any Unique Tax Laws?
One of the most unique facts about the tax laws in Montana is that the state is only one of five in which there is no general sales tax. Instead, Montana raises revenue to pay for different government programs by relying on income taxes. This means that individuals who earn a higher salary will be taxed at a higher rate than others in the state of Montana.
Also, although Montana does not impose a general sales tax, there are certain items that the state may selectively tax, such as gasoline, tobacco, oil, and some business licenses (e.g., a liquor license).
Another unique fact about the tax laws in Montana is that state residents can receive a thirty-five percent rebate in the form of tax credits if they opt to install and use renewable energy sources like wind or solar powered energy sources.
One last unique fact about the tax laws in Montana is that those who wish to purchase and register a car in the state will not be charged any taxes since Montana does not impose a tax on cars. Thus, it may cost less to purchase a car in Montana, then it would in another state, such as California or Virginia.
Should I Hire a Montana Tax Lawyer If I’m Facing Any Tax Issues?
Tax law issues can be exceptionally difficult to navigate without the guidance of a professional tax expert, such as an accountant or an attorney who specializes in tax law. Tax law in general is already a very complex field of law on its own. It then only becomes that much more complicated when a person is faced with a narrower tax issue like income taxes or corporate tax laws.
It also does not help that the main source of tax law in the United States (i.e., the Internal Revenue Code) gets amended each year, meaning that all other federal, state, and local tax laws are affected by those changes as well. Therefore, if you are involved in a dispute over a tax issue or have specific questions about the tax laws in Montana, then it may be in your best interest to contact a Montana tax lawyer for further legal advice on the matter.
An experienced tax lawyer who practices in your county in Montana will be able to answer any questions you may have about state and local tax codes, as well as can discuss your legal rights under the law. Your lawyer can also assist you in resolving your particular tax matter by performing legal research on the issue, filing the requisite legal documents, and making sure that you are in compliance with the relevant laws.
In addition, if you need to appear in court and/or in front of another federal or state government agency that oversees tax disputes, your lawyer will be able to provide legal representation during any of these proceedings if necessary.
