Best Tax Lawyers in Scranton

About Tax Law in Scranton, United States

Tax law in Scranton, United States, encompasses federal, state, and local regulations governing taxation, including the collection, assessment, and enforcement of taxes. Scranton is subject to Pennsylvania's tax laws, and like all cities, it must follow federally mandated tax regulations. Residents and businesses in Scranton must comply with federal tax obligations, Pennsylvania’s state taxes, and Scranton's local taxes, which may include property taxes, sales taxes, and other local levies.

Why You May Need a Lawyer

Tax law is complex, and situations frequently arise where legal assistance becomes important. Individuals and businesses may need a tax lawyer for various reasons, such as:

• Facing an audit by the IRS or state tax authority.
• Disputing tax assessments or seeking resolution for tax debts.
• Planning for business transactions that require careful tax consideration.
• Handling estate planning and ensuring compliance with tax implications.
• Navigating tax-related aspects of bankruptcy proceedings.
• Addressing instances of alleged tax fraud or evasion.

Local Laws Overview

Scranton, like other municipalities in Pennsylvania, follows state tax laws but also has its own local tax obligations. Key elements include:

• Property Taxes: These taxes support local schools, infrastructure, and services and are based on assessed property value.
• Local Earned Income Tax: Residents may owe local income taxes based on their earned income, separate from state and federal obligations.
• Business Privilege Tax: Businesses operating within Scranton may be subject to specific licensing fees and taxes based on business activity.
• Sales and Use Tax: The state-imposed sales tax applies, with Scranton potentially applying additional local rates.

Frequently Asked Questions

What are Scranton’s main local taxes?

Scranton's main local taxes include property taxes, local earned income taxes, business privilege taxes, and potentially additional sales taxes on top of the state rate.

How do I appeal a property tax assessment in Scranton?

To appeal a property tax assessment, you must file a formal appeal with the Lackawanna County Tax Assessment Appeal Board, as Scranton is in Lackawanna County.

What records should I keep for tax purposes?

Keep records such as W-2s, 1099s, receipts, expense logs, bank statements, and any documents related to income or deductions for at least three years.

Are there tax incentives for businesses in Scranton?

Yes, various federal, state, and local incentives may be available, such as tax credits for job creation or investment in specific zones. It's advisable to consult with a tax professional to identify applicable programs.

How are estates taxed in Scranton?

While there is no local estate tax, Pennsylvania imposes inheritance taxes. Additionally, federal estate taxes may apply if the estate value exceeds federal thresholds.

What happens if I cannot pay my taxes on time?

If you cannot pay taxes on time, you should contact the tax agency immediately to discuss payment plans or explore options to minimize penalties.

When should I hire a tax lawyer?

You should consider hiring a tax lawyer when facing audits, disputes with tax authorities, complex financial or business transactions, or potential legal action relating to taxes.

Can a tax lawyer help with IRS communications?

Yes, a tax lawyer is trained to handle communications with the IRS and can help negotiate settlements or represent you in disputes.

How do I know if I'm being audited?

You will receive a formal notice from the IRS or state tax authority via mail if you are selected for an audit.

What's the difference between tax avoidance and tax evasion?

Tax avoidance is the legal practice of minimizing taxes using all available means, such as deductions and credits, whereas tax evasion involves illegally avoiding taxes through deceit or misrepresentation.

Additional Resources

Here are some resources that can assist those in need of tax advice:

• IRS Website: Provides comprehensive information on federal tax regulations and services.
• Pennsylvania Department of Revenue: Offers guidance on state taxes and compliance requirements.
• Lackawanna County Tax Office: Manages local tax issues and appeals.
• American Bar Association – Tax Section: Educational resources and a directory of tax professionals.

Next Steps

If you require legal assistance in tax matters, you might consider the following steps:

• Identify your specific tax issue and gather relevant documentation.
• Consult with a qualified tax attorney specializing in local and federal tax law.
• Consider contacting professional organizations for referrals to reputable tax specialists.
• Explore community resources; some non-profit organizations may offer affordable legal advice services.