What is Tax Law?

For most people, tax law is a complicated matter. Although not everyone is comfortable discussing about it, tax law plays a vital role in government and national economy. It is the legislation which organizes how the government collects money from businesses and its citizens. To ensure that everyone get’s taxed in a fair and equal manner these laws are necessary, since these taxes are also used by the government as revenues. Tax laws cover a vast number of areas such as disputes, exemptions, or other situations which calls for legal actions or procedures.

There are two main classes of taxes: the direct taxes (where in general terms, are the taxes that are assessed against the income, personal property, and land or real properties and are paid directly to the government), and the indirect taxes (assessed against items of consumptions, namely services or products, and is collected by a go-between, such as a merchant or seller). It is the law which sets up the government’s authority on how to collect money by way of a certain agency.

Disputes between the IRS (Internal Revenue Service, accountable for the collecting of taxes as well as the implementation and information of the Internal Revenue Code) and the taxpayers are often heard on a special trial court on the US Tax Court. Although the base in at Washington DC, there are about 19 appointed judges that travel to different designated cities to administer over tax dispute trials.

Tax disputes, appeals, exemptions, and other circumstances can come up and bother any person or business establishment, therefore having a tax lawyer is important since tax laws are intricate and complex for the common man. Because failing to comply with the laws is considered a criminal offence, any issues that can come up may have serious damage to the person or business establishment, thus the need for a reliable and recognized tax lawyer can be invaluable.

read more