Tax Law - Guide to Taxation Law




What is Tax law? It covers the rules, policies and laws that oversee the tax process, which involves charges on estates, transactions, property, income, licenses and more by the government. Taxation also includes duties on imports from foreign countries and all compulsory levies imposed by the government upon individuals for benefit of the state.

The intricate body of tax law covers payment of taxes to a minimum of four levels of government, either directly or indirectly. Indirect taxes are assessed against products and services that are meant to be consumed, but are paid to an intermediary. For example, when you buy coffee at a local corner store, the retailer charges you tax on your coffee, which he/she subsequently pays to the government. Direct taxes are those you pay directly to the government and are imposed against things like land or real property, personal property, and income.

There is a seemingly endless list of entities that create and enforce tax laws and collect tax revenues. They range from the local government level, such as cities and other municipalities, townships, districts and counties to regional, state and federal levels. They include agencies, transit districts, utility companies, and schools, just to name a few.

The area of tax law is exceedingly complex and in constant flux largely due to two reasons. The first is that the tax code has been used increasingly more often for objectives other than raising revenue, such as meeting political, economic and social agendas. The second reason is the manner in which the tax code is amended.

The Federal tax law is administered primarily by the Internal Revenue Service, a bureau of the U.S. Treasury. The U.S. tax code is known as the Internal Revenue Code of 1986 as amended (Title 26 of the U.S. Code). Other federal tax laws are found in Title 26 of the Code of Federal Regulations; proposed regulations issued by the Internal Revenue Service (IRS); temporary regulations issued by the IRS; revenue rulings issued by the IRS; private letter rulings issued by the IRS; revenue procedures, policy statements, and technical information releases issued by the IRS; and federal tax court decisions. Tax law for state and local government is also contained in codes sections, regulations, administrative codes, procedures and statements issued by the respective government authorities, as well as state court decisions.

There is a special trial court which hears disputes between the IRS and taxpayers regarding federal income, estate and gift tax underpayments - the U.S. Tax Court. This federal court is based out of Washington, but its 19 presidentially appointed judges travel to preside over trials in courts located in several designated major cities. The Tax Courts’ decisions may be appealed to the Federal District Court of Appeals and final review is retained by the highest court in the land, the U.S. Supreme Court.

Tax attorneys serve many important functions in the complicated arena of tax law. They may represent you throughout the various stages of tax disputes, from an initial audit to IRS administrative appeals, Tax Court and final review by the Court of Appeals, or even the U.S. Supreme Court. They are also invaluable in helping you navigate the intricate and bewildering laws in this area of practice.

Tax Law Definition

Taxation is a governmental assessment upon property value, transactions, estates of the deceased, licenses granting a right and/or income, and duties on imports from foreign countries. It includes all contributions imposed by the government upon individuals for the service of the state. Taxes are usually divided into two main classes: direct and indirect. Generally speaking, direct taxes are those assessed against income, land or real property, and personal property, which are paid directly to the government; whereas indirect taxes are assessed against articles of consumption, such as products or services, but collected by an intermediary, such as a retailer.

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Articles About Tax Law

  • Warning Signs that a Criminal Investigation Is Pending in IRS Cases
    There are various signs that a criminal investigation is on the horizon. These are not the same as civil inquiries. The Internal Revenue Service initiates these from the recommendation of the auditor assigned to the person or company. Tax returns or fraudulent activity that includes illegal acts are analyzed by the Criminal Investigation Division of the IRS.
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    Because criminal investigations initiated by the Internal Revenue Service require resources and time that may be better utilized elsewhere, starting a case for possible tax crimes is not sought after by this agency. Audits are often routine for various reasons based on data collected during and after tax season.
  • IRS Criminal Investigations
    The Internal Revenue Service is called when both businesses and individuals are suspected of illegal income, revenue and wage activity. Anyone may be subject to an audit, but these are especially harmful when there are actual illegal processes occurring within the company.
  • Federal Tax Fraud Explained
    Fraud comes in many shapes and sizes. The amount that is taken during fraud crimes is one factor considered when charges are filed and when a case initiates. Tax fraud is different than these other types as only the Internal Revenue Service is permitted to pursue suspected tax offenders.
  • FBAR and FATCA and their Involvement with the IRS
    Foreign Bank and Financial Accounts Report (FBAR) and the Foreign Account Tax Compliance Act (FATCA) are both important acronyms to know when dealing with potential issues with the Internal Revenue Service.
  • FATCA Issues
    The Foreign Account Tax Compliance Act was issued by the IRS in response to the Hiring Incentives to Restore Employment Act signed by President Obama in 2010. This was implemented to ensure foreign accounts with taxable income are reported and adherence to guidelines issues was followed by individuals with income in accounts in overseas banks.
  • Extent that a Financial Institution Can Outsource AML Compliance
    Anti-money laundering compliance is very important to banks and financial institutions per the United States government. Without adherence to these regulations, a company is open to potential prosecution for various internal activities.
  • Criminal Tax Problems
    When persons work in the United States, it is illegal to not report income after a certain threshold has been reached. This is especially important for businesses.
  • Criminal Tax Issues and Audits
    Audits tend to occur when there is a suspected tax crime. It is important to ensure a civil examination is accomplished with cooperation, a calm presence and peaceful actions. The revenue agent provided for the investigation should not be misled or lied to. With all information disclosed properly even after the examination initiates, a criminal investigation may not be the next process.
  • Criminal Consequences Associated with Failing to Report Foreign Bank Accounts
    Reporting foreign accounts in banks is vital to ensure criminal consequences are not issued to individuals filing taxes. Adherence to the Foreign Bank Accounts Reporting is vital to ensure penalties that may be as little as $10,000 or 50 percent of all account income in offshore accounts do not occur.
  • All Tax Law Articles

State Tax Agencies

Taxation Law - US

  • ABA - Section of Taxation

    The American Bar Association Section of Taxation serves it's members by educating about taxes, and by providing leadership to support the development of an equitable, efficient and workable tax system.

  • Alcohol and Tobacco Tax and Trade Bureau

    The Alcohol and Tobacco Tax and Trade Bureau develops regulations, conducts product analysis and ensures tax and trade compliance with the Federal Alcohol Administration Act and the Internal Revenue Code.

  • Internal Revenue Code

    The Internal Revenue Code is the domestic portion of federal statutory tax law in the United States implemented by the IRS.

  • IRS - Tax Exempt Bond Division

    The mission of the Tax Exempt Bond function of TE/GE is to fairly administer the Federal tax laws applicable to tax-exempt bonds and to provide our customers with top quality service by applying the tax law with integrity and fairness.

  • IRS - Taxpayer Advocate Service

    The Taxpayer Advocate Service's (TAS) job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. We offer free help to guide you through the confusing process of resolving your tax problems.

  • Taxpayer Bill of Rights

    The Taxpayer Bill of Rights is to help you understand what legislative rights and protections are available to you.

  • United States Excise Tax

    Excise taxes are taxes on a specific good, such as gasoline, and are often included in the price of the product.

  • United States Federal and State Corporate Tax Legislation

    An analysis of the legal and taxation characteristics of legal forms for doing business in the USA.

  • United States International Trade Commission - Harmonized Tariff Schedule

    The HTSA provides the applicable tariff rates and statistical categories for all merchandise imported into the United States; it is based on the international Harmonized System, the global system of nomenclature that is used to describe most world trade in goods.

  • United States Sales Tax

    Sales taxes are taxes placed on the sale or lease of goods and services imposed by state and local administrations.

  • United States Tax Court

    Congress created the Tax Court to provide a judicial forum in which affected persons could dispute tax deficiencies determined by the Commissioner of Internal Revenue prior to payment of the disputed amounts.

  • US Department of the Treasury - Taxes

    Collecting taxes in a fair and consistent manner is a core mission of the Treasury Department. Treasury's priorities in tax administration are enforcing the nation's tax laws fairly and efficiently while balancing taxpayer service and education to promote voluntary compliance and reduce taxpayer burden.

  • US Internal Revenue Service

    The IRS mission is to provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

Taxation Law - International

Organizations Regarding Taxation Law

Publications Regarding Taxation Law




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