Laws, not men, tell men what to do. Also, the laws of the land touch on almost every part of your life. No one is above the law when it comes to how they use their property, what is expected of them in society, or how they pay their taxes. Because of this, there are things you need to do and think about if you want to do what the law says you should. Depending on the state you live in, tax laws may seem hard to understand. A tax lawyer in China might give you different legal advice than a tax lawyer in Tampa. This is because each state's tax system is different. Tax law is a set of laws that tells the government how much to charge for certain business or economic transactions. Taxpayers get their money back in the form of government projects. You will be punished if you didn't do your job as a taxpayer.
Tax law is a part of what law schools teach. They are mostly for advice, but they can be used as evidence in court. Tax law is important for both business and personal planning. If you are having trouble with the Internal Revenue Service (IRS), you need a tax lawyer to help and defend you.
Tax laws require you to keep records that the government can look at. These records can also show that you are following the tax laws. Still, many taxpayers don't know what records they need to keep and for how long.
By "tax records," they mean your tax returns and the bank statements, receipts, 1099s, and other documents that back up your returns. These papers are important if you want to keep the IRS away. Your tax lawyer will explain what these records are and why they are important.
But to make things easier for you, here is a quick rundown:
The amount of tax a person has to pay is listed on their tax return. They are also good proof that you paid your taxes, and you have to keep them for life. IRS is known for losing and misplacing tax returns, so make sure yours will help you avoid a bad audit. Also, the IRS gets millions of tax returns every three months, so lost returns are something that will always happen. So, it's best to keep every tax return you get.
If you file your taxes electronically, you should get copies from the company that helps you file. By the way, they have to give you copies by law. On the other hand, supporting documents should be kept for 6 years after the returns are filed. But in some cases, this time period can be longer.
In a divorce case, tax records are very important. Also, it's best to keep important papers like financial records, tax returns, proof documents, and credit reports, not just for divorce but for other reasons as well. If you don't keep it, you can expect to live through a nightmare. You can buy a filing cabinet if you want to keep all of your tax records in one place so they are easy to find.
If you're lucky, you'll never need to look at your tax records again. But if you're one of the unlucky few who gets audited, your tax records will be your only way to show that you've followed tax laws.
