Tax Lawyer Bethesda, MD

Table Of Contents

• YProfessional Assistance With Your Tax-Related Legal Needs
• Bethesda Tax Law FAQs
• Contact Our Bethesda Tax Lawyer Today

How Our Tax Lawyer Can Help You

There are a host of reasons why you may benefit from connecting with a skilled Bethesda tax lawyer, either proactively or reactively. This is partially due to the reality that few areas of the law are as intricate, applied uniquely based on individual circumstances, and ever-evolving as the U.S. Tax Code. Trying to navigate a matter on your own could cost you time, money, and possibly even your freedom in the event that you’re charged with fraud, evasion, or other misconduct. Instead of risking potentially life-altering negative consequences, it’s generally best to seek legal guidance from a skilled tax lawyer when you’re facing tax-related challenges as an individual or as a business owner.

Tax-Related Services That You May Benefit From

Tax lawyers serve as specialists in the area of tax law, allowing clients to benefit from informed guidance and assistance. Some tax services that tax attorneys offer benefit clients in both proactive and reactive capacities. For example, a professional’s ability to interpret tax laws and regulations in informed ways can help to prevent legal challenges and can help to successfully resolve any that may arise. Similarly, tax planning and strategy can help to minimize tax liability before the IRS “comes knocking” and can help those who have been affected by IRS action to better safeguard their rights and interests moving forward.

Additionally, tax lawyers represent their clients’ interests in the event that legal action and/or audits are initiated against them as individuals or against their businesses. Navigating a legal dispute on one’s own may be fine if you unintentionally ran a red light or forgot to renew a professional license for a month. But representing yourself in a tax matter is almost certainly a recipe for both stress and negative consequences that are best avoided.

Bethesda Tax Law FAQs

For business owners, it’s critical that they have a basic understanding of tax law, which is why it’s imperative to have help from a Bethesda, MD tax lawyer. Our team from Crepeau Mourges will share that navigating the complexities of business taxes can be challenging. That’s why we’re here to provide clarity and guidance on frequently asked questions related to business taxation. In this guide, we’ll cover essential topics such as types of business taxes, tax classification, deductible expenses, implications of hiring employees versus independent contractors, and calculating estimated taxes. Let’s dive in.

What Are The Different Types Of Business Taxes?

Business taxes encompass various types, including income taxes, payroll taxes, sales taxes, and excise taxes. Income taxes are levied on the profits earned by businesses, while payroll taxes are withheld from employee wages to fund Social Security and Medicare. Sales taxes are imposed on the sale of goods and services, varying by state and locality. Excise taxes apply to specific products like gasoline, alcohol, and tobacco.

How Do I Determine My Business’s Tax Classification?

The tax classification of your business depends on its legal structure. Common classifications include sole proprietorship, partnership, corporation, and S corporation. Sole proprietorships and partnerships pass through profits and losses to the owners, who report them on their personal tax returns. Corporations are separate legal entities taxed at the corporate level, while S corporations elect to pass income, losses, deductions, and credits through to shareholders for federal tax purposes.

What Expenses Can I Deduct As A Business?

In an effort to reduce their taxable income, business owners can deduct various expenses. Common deductible expenses include salaries and wages, rent for business premises, utilities, office supplies, advertising and marketing costs, professional fees, insurance premiums, and depreciation on business assets. It’s essential to keep detailed records and ensure that expenses are ordinary and necessary for your business operations.

What Are The Tax Implications Of Hiring Employees Versus Independent Contractors?

Our Bethesda tax lawyer will share that hiring employees entails payroll tax obligations, including Social Security, Medicare, federal and state unemployment taxes, and possibly workers’ compensation insurance. Employers must withhold income taxes and pay employer taxes on behalf of employees. In contrast, independent contractors are responsible for their taxes, and businesses generally don’t withhold taxes from their payments. Misclassifying workers can lead to penalties, so it’s crucial to understand the distinctions between employees and independent contractors.

How Do I Calculate And Pay Estimated Taxes For My Business?

Businesses typically pay estimated taxes quarterly to cover income and self-employment taxes. To calculate estimated taxes, estimate your business’s annual income and deductions, then calculate the tax liability based on the applicable tax rates. Use IRS Form 1040-ES to estimate and pay taxes quarterly. Failure to pay estimated taxes timely may result in penalties and interest. Consulting with a tax professional can help ensure accurate calculations and compliance with tax obligations.

Bethesda Tax Infographic

Tax Lawyer Glossary

At Crepeau Mourges, our tax lawyers in Bethesda, MD, provide support for individuals and businesses dealing with various tax obligations and regulatory requirements. Below, we define some essential tax terms and concepts that can help clients understand the landscape of business tax compliance and individual tax responsibilities.

Excise Tax

Excise tax is a tax applied to specific goods and services, including gasoline, alcohol, tobacco, and certain luxury items. Unlike sales tax, which is more broadly applied at the consumer level, excise tax is generally imposed on goods at the production or distribution stage, with the cost often passed on to consumers. Businesses that manufacture or sell products subject to excise tax must register with the IRS and comply with federal, state, and local excise tax rules. Failure to meet excise tax obligations can lead to penalties and interest charges. We work with clients to address excise tax requirements, helping them meet their regulatory responsibilities and avoid potential issues.

Sales Tax Compliance

Sales tax compliance involves the collection and payment of sales tax on taxable goods and services. Sales tax rates vary widely by state and locality, and the requirements may change based on where the business operates. Some products are exempt from sales tax depending on the specific state’s tax code, adding another layer of consideration for businesses. Non-compliance with sales tax regulations can lead to penalties, interest charges, and audits. Our team helps businesses understand their sales tax obligations, file accurately, and avoid issues with state and local authorities.

Deductible Expenses

Deductible expenses are business costs that can be subtracted from gross income, which lowers taxable income and, in turn, reduces tax liability. Examples of deductible expenses include salaries, office supplies, rent, utilities, advertising expenses, insurance premiums, and depreciation on business assets. For an expense to be deductible, the IRS generally requires it to be both “ordinary” and “necessary” for the business’s operations. Maintaining detailed records of these expenses is crucial, as improper deductions can raise red flags and potentially trigger an audit. We assist clients in identifying eligible expenses to maximize tax benefits while maintaining compliance with IRS standards.

Payroll Tax Obligations

Payroll tax obligations refer to the taxes that businesses must withhold from employee wages and remit to the government. Payroll taxes fund programs like Social Security, Medicare, and state unemployment insurance. Employers must withhold these taxes from employees’ paychecks and are also responsible for paying certain portions of payroll taxes directly. Failing to comply with payroll tax obligations can lead to penalties, interest, and potentially serious legal consequences. We work closely with business owners to help them stay on top of these payroll responsibilities, avoiding issues with tax authorities and ensuring accurate reporting.

Misclassification Of Workers

Worker classification is critical in determining tax responsibilities and legal obligations. Misclassification occurs when a business incorrectly categorizes a worker as an independent contractor instead of an employee or vice versa. This distinction is important because employers must withhold income taxes and pay payroll taxes for employees, whereas independent contractors handle their own tax obligations. Misclassifying workers can lead to IRS penalties, back taxes, and interest. We support clients by reviewing their worker classifications, ensuring that relationships align with IRS and Department of Labor standards, and helping them avoid the legal and financial impacts of misclassification.

Proper management of tax responsibilities and a clear understanding of business tax regulations are essential to reducing liabilities and avoiding penalties. If you’re seeking guidance from a tax lawyer in Bethesda, MD, to address business or individual tax concerns, contact Crepeau Mourges today to discuss your needs and learn how we can help.

Contact Our Bethesda Tax Lawyer Today

If you are unsure of whether or not the tax professionals at Crepeau Mourges can assist you with whatever your current needs and concerns may be, do not hesitate to connect with our offices to learn about our services and how we may be able to help. As tax law is very circumstantial, you’ll understandably need to have guidance tailored to your unique circumstances. Whether you’re in need of help with your individual tax concerns or those of your business, know that our Bethesda tax lawyer team is always available to answer your questions and to advocate efficiently and effectively on behalf of your rights and interests.