Tax Law

The complexity of tax law cannot be overstated. The federal tax code occupies more than 1,000 sections of the U.S. Code. The accompanying tax regulations consume more than 10,000 pages of the Code of Federal Regulations. There are tens of thousands of cases at administrative and judicial levels interpreting those statutes, regulations, and other cases.

Did the 2017 Tax Cuts and Jobs Act ("TCJA") make the tax law any simpler?  No, but there are some interesting planning ideas one should consider with the new law.  The TCJA sets the C-corporation tax rate at 21%.  The highest marginal income tax rate for an individual is 37%, which may entice taxpayers to contemplate using a C-corporation in their tax and business structure.  A C-corporation pays income tax, but the shareholders pay a second tax on distriubtions from the corporation (called dividends).  The dividend is taxed at rates of 0%, 15%, or 20%, depending on the taxpayer's tax bracket (another tax of 3.8% could apply due to the Obamacare Net Investment Income Tax).  That is the "double layer" of taxation that many privately-held companies and indivudals have historically avoided.  However, for small businesses that desire to pay a lower tax on income at 21% and defer making dividends for some period of time, the C-corporation may make a comeback.

It is a great and important time to review your income tax planning and structure.  Our tax attorney can review your situation for tax planning and asset protection.

Did the IRS or the Comptroller Call You?

Our tax attorney is uniquely well-positioned to provide you with the guidance and expertise you need for tax planning and the execution of transactions with tax implications. He has a degree in accounting, a Master's degree in taxation, and a LL.M. in tax law. In addition, he has worked as general counsel of a chemical company and a construction company, providing him with a wealth of real world experience to go along with his academic knowledge of tax law.

James Law Firm, P.L.L.C., can help individuals and businesses with:

  • Federal and state tax planning
  • State tax matters (franchise/margin tax, sales tax)
  • State and federal tax controversies
  • Audits
  • Income tax
  • Payroll tax disputes
  • Estate tax

The Danger Of Payroll Taxes

Payroll taxes are collected by a business for its employees. It is crucial that collection and remittance of the tax to the IRS be done correctly and in a timely manner. The Internal Revenue Service (IRS) imposes a fiduciary duty on employers, and certain owners and managers, as individuals, with regard to this tax, and failure to collect and pay this tax can lead to severe penalties and the risk of criminal charges. Our lawyer can advise you if the IRS has looked to you for payment of payroll taxes.

IRS Tax Controversies

Our tax attorney can advise and represent you in IRS audits, appeals, and Tax Court cases. Not only is tax law complicated, but the procedure is complicated. Do not attend an audit, appeal, or case alone.

You want an attorney with you when you are speaking with IRS officials. You must keep in mind that if you make an error, are confused or make an inadvertent representation about your finances or taxes to an IRS agent that misstatement could charged as an independent crime of lying to a federal officer.

Contact Us For Knowledgeable Tax Advice

Dealing with tax planning and tax transactions demands a high degree of familiarity with tax law, both Texas and federal. Contact our office in The Woodlands at 832-764-7885 or use our online form.