Guide to Taxation Law: Introduction and What it Includes

The tax law involves many areas of legal practice. Taxation originates more than thousands of years ago. The emergence of taxes is interconnected with the emergence of the government. The tax is a resource for the presence and prosperity of each state. The tax lawmaking includes laws, rules that regulate and form the taxation.

Therefore, it is so vital not to shy away from paying the tax since this will be followed by the descent of one's own life level. Basically, taxes are levied on income, real estate, purchases, and so on.

Tax Law: An Introduction

Let's look at its origins:

  • In 1916 the first tax was introduced.
  • In 1939, all the various acts on taxation became the US Tax Code. From year to year it was supplemented.
  • In 1954, he became re-codified in the Tax Code of 1954.
  • In 1986, all tax requirements were presented at the federal level.
  • The current version of the Code is reviewed and complemented annually and has reached more than 2000 pages.

As for the taxing power, state bodies are entitled to charge taxes, this is confirmed by the law.

The origins of the limitations on the taxing power come from political judgments and traditions. It is envisaged that all people are equal without exception before the law, and this is detailed in the Constitution.

As for the administrative law of the taxation, it is the executive power. The matter is that each tax differs both on the purposes, and on ways of gathering, therefore it is subdivided into branches.

What Does Tax Law Involve?

This branch of law includes administrative, financial, civil and even criminal law.

  • The tax law is a rule that gives full authority to state bodies to make claims to taxpayers. Moreover, state bodies are given the right to levy income or property.
  • The establishment, enactment and termination of previously imposed taxes and fees
  • The tax law concerns only legal aspects.
  • Punishment for non-payment of taxes or late payments
  • Enforcement of law

What Makes a Good Tax Lawyer?

The tax right intersects with almost all legal practices. Aspects of the opportunities of a lawyer specializing in tax legal relations are quite diverse. Some believe that this is a kind of tax advice. According to others, this type of services is somewhat different. As a rule, the truth is in the middle. Most companies require a professional who will have both legal and accounting experience.

If the taxpayer has problems with the tax service, in most cases he will try to solve them independently. Many small and medium-sized business owners still believe that an accountant will do everything for them. And the lawyer will not need tax assistance.

Hence, when it comes to conducting tax audits, both owners and accountants are in a panic. That's why it's so important when the business has a tax lawyer who can see possible problems on time, solve them and thereby prevent the tax hazard. This will significantly reduce the company's expenses and significantly increase the remuneration of a lawyer.

The main duties are:

  • give the info on the lawmaking regulation of the client's issue, the practice of its administrative review and possible way out to the problem;
  • assistance in the formation of a new enterprise, analysis of possible tax risks and the forthcoming tax burden;
  • assay of tax documentation for violations;
  • removal of contradictions and disagreements
  • optimization of taxation and planning of taxes at the enterprise;
  • awareness of state laws and understanding of accounting.