Determination of tax liability is a very important part of the tax regime, said the best tax lawyer in Louisiana. Every citizen has to pay tax on his income or assets irrespective of whether he earns them directly or indirectly through loans, dividends or any other indirect methods. The basic principle of tax law is that the tax imposed by a country on its citizens cannot be higher than the tax levels that would have been imposed in the country if tax liability had not been determined. The Internal Revenue Service (IRS) performs the task of determining tax liability through examination and investigation of the individuals and companies involved. These tax assessments are termed as tax penalties and can vary from case to case. There are several methods through which tax liabilities can be computed including: The matrix method, the area based method, the double taxability method, the uniform resource area method and the state tax debt method.
Determination of tax liabilities can be complex, and for this purpose tax attorneys can be quite helpful. A tax lawyer looks into all aspects of a tax case and renders advice on various techniques that can be used to reduce tax liabilities. There are several indirect methods through which tax liabilities can be calculated. The taxpayers may have to make necessary amendments in order to comply with these indirect methods. These indirect methods include: The audit procedure, the request for evidence and the review procedure.
The audit procedure involves an examination of the books and records of the company in order to determine the extent of tax liability. This examination is also accompanied by a request for information from the accounting records and by a request for the review of the accounts receivable. A tax lawyer helps the client in preparing the documents required under this examination and also in drafting the reply to the auditor. The review procedure involves examination of the accuracy of the computations of tax liabilities made in the previous years and the computation of tax liability on behalf of the client by using the internal revenue laws of the country. A tax lawyer can assist the client in preparing and filing the returns needed in this regard. A tax lawyer prepares the instructions to the government agencies and also assists the client in defending his tax claims in court if required.
The tax liability of a taxpayer may be determined by various approaches. One of the common approaches is the federal tax lien position. In such cases the taxpayer who owes the tax liability is allowed a grace period to pay the tax liability through installment payments or the full amount may be recovered through the appeals determination process, said the best tax attorney in all of Missouri. In such circumstances, it is wise to consult a competent tax attorney who can help you in taking relevant decisions. An attorney can also represent the taxpayer before the IRS in the appeals determination process. If you are not represented the taxpayer may not obtain the benefits under the provisions of the law, including the tax relief provided under the law.