Best Tax Lawyers in McAllen

About Tax Law in McAllen, United States

Tax law in McAllen operates at three main levels - federal, state, and local. Federal taxes are administered by the Internal Revenue Service and include income tax, payroll tax, self-employment tax, estate and gift tax, and federal employment withholding. Texas does not impose a state personal income tax, but it does have state-level business taxes and sales-and-use tax rules administered by the Texas Comptroller of Public Accounts. Local authorities - including the City of McAllen, Hidalgo County, and the Hidalgo County Appraisal District - administer property taxes, local sales tax additions, hotel occupancy taxes, and certain local assessments.

Because tax law combines complex federal rules with state statutes and local ordinances, residents and business owners in McAllen commonly interact with multiple agencies. Understanding which rules apply to your situation - and what deadlines and administrative remedies are available - is critical to avoiding penalties and resolving disputes.

Why You May Need a Lawyer

Tax matters can be routine for many people, but certain situations commonly require legal help from a tax attorney or other qualified tax professional. You may need a lawyer if you face any of the following:

- An IRS audit, examination, or collection action such as a tax lien or bank levy.

- Criminal tax investigations or allegations of tax fraud.

- Complex business tax issues - for example, structuring a company to limit tax exposure, handling franchise tax disputes, or navigating multi-state nexus and apportionment rules.

- Property tax disputes that require formal protest, administrative hearings, or litigation.

- Payroll tax problems, unpaid employment taxes, or issues with worker classification.

- Estate, gift, and succession planning where tax consequences are significant.

- Sales-and-use tax audits or disputes about whether your goods or services are taxable in Texas or locally.

- Negotiating offers in compromise, installment agreements, or other settlements with federal or state tax authorities.

- Representation before administrative bodies and in court - for example, at the Hidalgo County Appraisal Review Board, the Texas Comptroller, or federal tax court.

Local Laws Overview

Key local-law principles that affect taxpayers in McAllen include the following:

- No state personal income tax - Texas does not levy a personal income tax. Residents still owe federal income and payroll taxes.

- Sales-and-use tax structure - Texas has a state sales tax base administered by the Texas Comptroller. Municipalities and counties may add local sales tax on top of the state rate. Businesses with physical presence or economic nexus in Texas must register, collect, and remit sales tax on taxable sales.

- Property taxes and appraisal process - Property taxes in McAllen are ad valorem taxes based on appraised value. The Hidalgo County Appraisal District handles appraisals and issues notices of appraised value. There is a formal protest process before the local Appraisal Review Board, and strict deadlines apply for filing protests and appeals.

- Exemptions and special appraisals - Texas offers common exemptions such as homestead exemptions, over-65 and disability exemptions, veterans exemptions, and special valuation for agricultural productivity. Qualification rules and application procedures vary.

- Business taxation - Texas imposes a franchise tax - sometimes called a margin tax - on many business entities doing business in Texas. Entities must determine their taxable margin, file returns, and pay any tax due to the state.

- Local incentives and tax abatements - McAllen and Hidalgo County may offer tax incentives, tax abatement agreements, or tax increment reinvestment zones for certain development projects. These involve contracts and deadlines and can affect tax obligations or disputes.

- Collection remedies and penalties - Unpaid property taxes and local taxes may lead to penalties, interest, tax liens, and foreclosure for real property. At the federal level, unpaid taxes can result in federal tax liens, levies on bank accounts, wage garnishment, and levies on other assets.

- Administrative and judicial appeal rights - For property tax disputes, the Appraisal Review Board is the initial forum. For state tax disputes, administrative hearings and protests to the Comptroller may be available. Further appeals may be taken to state district court or appropriate federal courts in federal matters.

Frequently Asked Questions

What taxes do I have to pay as a resident of McAllen?

As a resident you are subject to federal taxes - income tax, payroll tax, Social Security and Medicare contributions, and possibly estate or gift tax. Texas does not have a personal income tax, but you will likely pay local property taxes and sales tax on purchases. If you own a business, you may also be subject to the Texas franchise tax and applicable local business taxes or licenses.

How do I protest my property tax appraisal in Hidalgo County?

If you believe your property has been overvalued or you qualify for an exemption, you must file a protest with the Hidalgo County Appraisal District. Watch the notice of appraised value for the deadline to protest - the deadline is strict and often falls in the spring months. Prepare evidence such as recent sales of comparable properties, photographs, repair estimates, and documentation of any exemptions. Hearings are held before the Appraisal Review Board, and you may be able to settle with the appraisal district before a hearing or take further appeals to district court if necessary.

I received an IRS notice - what should I do first?

Read the notice carefully and note any deadlines. Many IRS notices request documentation or propose changes to your return. Do not ignore the notice. If the notice is unclear, contact a qualified tax professional - an attorney, CPA, or enrolled agent - before responding. If you need more time, some notices allow you to request additional time to respond or to set up a payment plan. Keep copies of all correspondence and send responses by certified mail or through a secure method that provides proof of delivery.

What can happen if I do not pay my property taxes or other local taxes?

Unpaid property taxes typically incur penalties and interest and can result in a tax lien on the property. Continued nonpayment can lead to foreclosure or sale of the tax lien. For other unpaid local taxes or business taxes, penalties and liens are possible. At the federal level, unpaid taxes can result in federal tax liens and levies, garnishment of wages, and seizure of assets. If you cannot pay, seek help early to negotiate payment arrangements or other relief.

Do I have to collect sales tax on internet sales to buyers in McAllen?

If your business has nexus in Texas - either physical presence or economic nexus because of sales volume or transaction counts - you must collect Texas sales tax on taxable sales to Texas buyers. Local McAllen sales tax may also apply. Nexus rules and thresholds can be complex, especially for remote sellers, so consult a tax professional or the state tax authority to determine your obligations and to register for a sales tax permit.

What is the Texas franchise tax and who must file it?

The Texas franchise tax is a business privilege tax applied to most entities doing business in Texas, including corporations and many limited liability companies and partnerships. The tax is generally based on a taxable margin calculation. Some small businesses fall below the no-tax due threshold and only need to file a no-tax-due report. Determining whether your entity is subject to the tax and how to compute it often requires professional guidance.

What property tax exemptions are available in Texas?

Common exemptions include the homestead exemption, over-65 and disabled person exemptions, veterans exemptions, and exemptions for certain charities and government-owned property. There is also special valuation for agricultural land based on productivity. Each exemption has qualification rules and an application process, so confirm eligibility and file timely applications with the appraisal district.

What are my rights during an IRS audit?

You have the right to representation by a tax attorney, CPA, or enrolled agent. You can request that communications be handled through your representative. You also have the right to appeal an auditor s findings administratively and to seek judicial review if appropriate. Cooperate with requests for documentation, but exercise your rights and consult a professional before making admissions or signing agreements.

What options do I have if I cannot pay my federal tax bill?

If you cannot pay the full amount, the IRS and state tax agencies may offer options such as installment agreements, temporary payment plans, or, in limited circumstances, offers in compromise. Penalty abatement or relief for reasonable cause may also be available. For severe financial hardship, other relief mechanisms may apply. A qualified tax professional can evaluate your finances and help pursue the best option for your situation.

How do I find a qualified tax attorney or tax professional in McAllen?

Look for a licensed attorney with experience in tax law - ideally with local experience in Hidalgo County and with practices involving the IRS or Texas tax matters. Check credentials such as state bar membership, board certification in tax law if available, and relevant experience with audits, appeals, or litigation. Consider CPAs and enrolled agents for return preparation and representation before the IRS. Ask for references, inquire about fees and billing methods, and request an engagement letter outlining the scope of work.

Additional Resources

Below are agencies and organizations that commonly assist taxpayers in McAllen and the surrounding area. Contact these bodies for official forms, procedures, and up-to-date administrative guidance.

- Internal Revenue Service - federal tax administration.

- Texas Comptroller of Public Accounts - state tax administration, sales tax, and franchise tax guidance.

- Hidalgo County Appraisal District - property appraisals and appraisal notices.

- Hidalgo County Tax Assessor-Collector - property tax collections and payment information.

- City of McAllen tax or finance office - local tax rules, occupancy taxes, and business licenses.

- Appraisal Review Board - local administrative forum for property tax protests.

- Texas Board of Legal Specialization - information on board-certified specialists in Texas.

- State Bar of Texas - resources to find qualified attorneys and information about legal specialties.

- Texas RioGrande Legal Aid and local pro bono or low-bono legal clinics - assistance for eligible low-income residents.

- Local certified public accountants and enrolled agents - tax return preparation and representation for many administrative matters.

Next Steps

If you need legal assistance with a tax matter in McAllen, follow these practical steps:

- Act quickly - observe all deadlines on notices and correspondence. Failure to meet deadlines can limit your rights to appeal or contest a determination.

- Gather documentation - collect recent tax returns, notices, appraisal notices, bank statements, business records, contracts, and any written communications from taxpayers or tax authorities.

- Consider who is best to represent you - a tax attorney is preferable for litigation, criminal exposure, or complex legal strategy. A CPA or enrolled agent may suffice for return preparation, audits, and many collection issues.

- Interview prospective professionals - ask about experience with federal and Texas tax matters, prior cases like yours, fee structure, expected timeline, and whether they will handle the matter directly or refer to others.

- Request a written engagement letter - ensure scope, fees, and responsibilities are clear before work begins.

- If you are dealing with an IRS matter, consider executing a power of attorney so the professional can represent you directly with the IRS.

- Explore low-cost or free options if affordability is a concern - legal aid services, volunteer tax clinics, or bar association referral programs may be available.

This guide provides general information and is not a substitute for legal advice. For advice tailored to your situation, contact a qualified tax attorney or other licensed tax professional in McAllen.