When you are faced with business tax planning issues, working closely with an attorney who will explain clearly all options and consequences can help to ensure that you make decisions that are in your business' best interests. Contact our firm today to schedule a consultation with an experienced tax attorney.
Experienced Taxation Lawyers in Columbia, Maryland
For any business, making responsible and informed decisions about tax planning is critical and can save you significant amounts of time, money and frustration. At the Thienel Law Firm, LLC, our attorneys work with clients from across Maryland, and regarding federal IRS taxes, throughout the United States. Our attorneys can assist your business in creating a complete tax plan.
Talk with us about your business needs to get the personalized assistance you deserve. Contact the Thienel Law Firm, LLC, by sending us an e-mail describing your needs or by calling us at 443-535-9715. Schedule a confidential consultation at our Columbia, Maryland, office.
Thank you for contacting Thienel Law Firm LLC. Your message has been sent.
Call us now
or use the form below.
All businesses, small, medium or large, must plan for all potential tax obligations and be informed about which state, federal and local taxes you may have to pay. The Thienel Law Firm, LLC, can assist your business with its tax planning needs.
In addition to tax planning, our lawyers can represent you in disputes and assist your business in other areas of business formation and administration. Contact the Thienel Law Firm, in Columbia, Maryland, for more information about our comprehensive business law services.
Federal Income Tax
Federal income tax is the largest contributor of revenue to the federal budget. Income tax law is complex, especially when applied to businesses. It is critical for businesses to have an understanding of these laws and how they will affect the business' tax liability and bottom line. A tax attorney at Thienel Law Firm LLC in Columbia, Maryland, can assist your business with understanding and complying with the federal income tax laws.
Sources of Tax Law
The Sixteenth Amendment to the US Constitution gave Congress the power to tax income from "whatever source derived." All residents and businesses are subject to the federal income tax. The Internal Revenue Code (IRC) is the main source of federal tax law. It is found in Title 26 of the US Code and is administered by the Internal Revenue Service (IRS). Title 26 of the Code of Federal Regulations provides guidance and explanations on IRC provisions. IRS regulations, rulings and policy statements and federal tax court decisions also shape federal income tax law.
What is Income?
In general, all "income" is subject to federal tax. However, the IRC does not specifically define "income" and it may have differing meanings. Gross income is generally defined as all income from whatever source derived, including:
- Pay for services such as wages, fees and commissions
- Interest earned
- Business income
- Royalties
- Rent payments
- Alimony
- Income from life insurance
- Endowment
- Pensions
- Income from a decedent
- Discharge of debt
- Income from an estate or trust
- Income from illegal activities
26 U.S.C. §61. The IRC also includes several exceptions to gross income, including the following:
- Any contribution to the capital of the corporation (26 U.S.C. §118(a))
- Employer-provided coverage under an accident or health plan (26 U.S.C. §106(a))
- The value of any meals or lodging given to an employee by an employer for the convenience of the employer (26 U.S.C. §119(a))
- Fringe benefits given to an employee if the fringe benefit qualifies as a: no-additional-cost service, qualified employee discount, working condition fringe, de minimis fringe, qualified transportation fringe, qualified moving expense reimbursement, qualified retirement planning services or qualified military base realignment and closure fringe (26 U.S.C. §132)
Adjusted gross income is gross income less certain allowable deductions, but before standard or itemized deductions and personal exemptions. 26 U.S.C. §62. Taxable income is defined in 26 U.S.C. §63 as gross income minus the deductions allowed by that chapter of the IRC. Essentially, it is the income on which the taxpayer will be taxed.
Conclusion
Determining a business' taxable income can be a complex task. IRC provisions and IRS regulations are generally not easy to understand and apply. A tax attorney at Thienel Law Firm LLC in Columbia, Maryland can advise your business on federal income tax issues.
Copyright ©2009 FindLaw, a Thomson Business
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
