Complying With Tax Law in Connecticut
The Internal Revenue Service Code along with the Connecticut Department of Revenue Services regulations are both complex and ever changing. In 2017, President Trump signed into law one of the most comprehensive changes to the Tax Code in recent history.
Proper tax planning can ensure both compliance as well as optimizing economic results in light of these tax law changes. The manner in which a transaction or business entity is structured is key to achieving this.
Collins Hannafin attorneys possess both the tax law and commercial law knowledge that together can help both the individual and business achieve this. Collins Hannafin strives to ensure that all tax issues are considered when advising clients on personal and corporate matters.
Inaccurate filing of a tax return and the related misunderstanding of the correct amount that is owed will likely result in a dispute with the respective tax authority. Civil damages, which would include both interest as well as penalties will be levied and, in some cases, criminal charges can be filed if the tax authority has probable cause that fraud was committed. Understanding the application of the Federal and State tax codes and regulations is paramount in responding to any dispute a taxpayer might with taxing authorities.
The audit process, along with the offer in compromise procedures that the IRS follows, is significant but not the only tax controversy one could be faced with. Dispute over the Connecticut Department of Revenue Service regulations as well as regulations that could be applicable from other states regarding income or sales tax can also create significant financial burdens if not properly addressed.
As recently as June of 2018, a clearer view on who is required to collect sales tax as been made available from the Supreme Court holding in Wayfair v. South Dakota. Lack of awareness and the exposure to a sales tax audit could result in a dispute that would lead to the redemption of the uncollected tax as well as penalties and interest.
The application of new regulations and standards created from court holdings are often times the focus of a tax audit. Proper professional guidance is one tool that a taxpayer can call upon to help mitigate the financial impact of such tax controversies.
Tax consequences on a business
The structure of a business and in most cases significant transaction could have tax consequences unforeseeable to the business or its stakeholders. Tax structuring is a tool that can help a tax payer appropriately document a transaction or business structure that mitigates any adverse tax consequence. More importantly is the resulting structuring documents that can provide clear guidance and support for the transaction or business structure that should help the tax payer successful sustain a tax audit.
Collins Hannafin tax lawyers possess the tax structuring knowledge and experience necessary to assist you in achieving your structuring goals.
Contact the tax lawyers at Collins Hannafin
Contact the dedicated legal team at Collins Hannafin today for assistance. Their office is conveniently located in Danbury.