Tax

Tax is the bloodline of the country, and states. It is regulated by the government for the main purpose of increasing revenues. Taxes are assessed by the government upon the value of properties, transactions and licenses. Taxes are also assessed by the government upon the value of the estates of a deceased person and the imposition of duties on imports. Tax law governs legislation, rules and policies that oversee the tax process. There are modes of paying taxes: direct and indirect. Property and income taxes are direct taxes, while sales and service taxes are indirect taxes. There are numerous tax collection and tax enforcement agencies in the federal and state levels. Non-governmental agencies, such as retailers, can also serve as intermediaries who collect taxes and pay these taxes to the government. Tax law is also a complex area of law, and is increasingly becoming difficult because the power of taxation can be used for purposes other than raising revenues.

The U.S. tax code, also known as the Internal Revenue Code, is administered primarily by the Internal Revenue Service. The IRC is complex and provisions must be read in context of the entire Code and the court decisions that interpret it. In addition to the IRC, federal tax laws also include the IRS's proposed regulations, temporary regulations, rulings, private letter rulings, procedures, policy statements, and technical information releases. Also part of federal tax law are the official interpretations of the IRC by the U.S. Department of Treasury. Moreover, federal tax law includes decisions by the federal tax court, which is a special court created to resolve disputes between taxpayers and the IRS. States and local governments also have their separate tax laws, regulations, and court decisions. Decisions by the Tax Court may be appealed to the Federal District Court of Appeals and final review is retained by the Supreme Court.

There are numerous nuances involving tax laws. But knowledge of tax laws are important for both individuals and businesses in the United States as misrepresentation of income or property value to avoid paying the appropriate taxes is a criminal offense and may lead to serious repercussions in the form of huge penalties or imprisonment or both. The federal government strictly enforces tax laws as it has been proven through historical data that tax evasion has caused the government millions of losses per year. It is in this regard that the federal government is overzealous in running after tax evaders, after non-payment of taxes means less funds for public programs.

Tax attorneys perform numerous functions. Tax attorneys provide counsel to individuals and businesses on how to have their incomes and properties properly valued such that they can avoid paying steep taxes, yet avoid being charged with tax evasion. Tax attorneys know the nuances that accompany this specific area of law so they are knowledgeable as to tax exemptions and tax holidays, which can help big businesses stave off millions from their expenditures. Tax attorneys also represent clients from an initial audit to IRS administrative appeals and tax litigation.


Areas of Law

Wills And Probate Law - Legal Information and Resources

Wills And Probate

Part of preparing for the time when an individual dies is estate planning. Included in estate planning is the creation of a last will and testament, a written and legal expression under which the individual determines what should be done to his properties when he dies. An individual executed a will before he died is said to have died "testate," while an individual who died without leaving a will prior to his death is said to have died "intestate." Leaving a will is not a guarantee that the distribution of the individual's properties will be smooth following his death as a will can be, and, is often, challenged. Probate is the legal process of administering the deceased person's estates, resolving claims against the deceased person's estate, and distributing the deceased person's properties.

Probate begins with the filing of a petition by an heir, creditor, or an interested party, asking the court for a right to settle an estate. The petition must be filed where the deceased owned a property. If the deceased owned properties in other areas, then petitions must be filed in each of the areas where the properties are located. The petition must name the heirs of the deceased, their relationship, and their residence. When the deceased died testate, the will be taken to court, probed of its authenticity, and recorded in the book of register kept by the clerk of court. After this, the court appoints an executor or administrator to settle the estate. An executor is named when the deceased died testate, while an administrator is named when the deceased died intestate. An administrator is required to post a bond with the court to ensure that he can properly complete his duties. Following the appointment of either executor or administrator, an appraiser will be called in to assess the value of the deceased's properties. During probate, the executor or administrator may sell some of the properties of the estate to settle the deceased's unpaid debts. Heirs, creditors and interested parties may challenge the will by asserting that they are entitled to more than what is indicated in the will. The court will then decide which of these claims are valid. Potential creditors are notified of probate proceedings as there is also a statute of limitations for the filing of claims. Failure to timely file claims may lead to their extinguishment. Child custody may also be included during probate when the deceased person left behind minor or incapacitated children.

Issues on inheritance is settled by state law, thus, rules and regulations vary differently from state to state. In cases where the individual owns properties in different states, it is imperative to seek the assistance of an expert attorney to determine the laws that would apply to the properties, especially on the areas of taxation. The federal government has attempted unify the often conflicting state probate laws by enacting the Uniform Probate Code. Not all states, however, have adopted the Code, so the issues arising from probate are still difficult to tackle without the help of expert probate laws attorney.


Areas of Law