There are perhaps few things business owners dislike more than taxes. Clients contact me for two reasons related to taxes:
- They want to pay less through tax planning, or
- They are in trouble for not paying enough taxes.
I represent business owners and their companies in IRS and Minnesota Department of Revenue audits including sales and use tax, income tax, and payroll tax.
Tax law often feels like its own language. Tax attorneys and auditors have different conversations than taxpayers and auditors. I speak on behalf of the client, to minimize the clients’ misstatements or mistakes, advocate for them, and seek a reasonable resolution.
Excise taxes are taxes paid on the purchase of specific types of goods. Excise taxes are most often used on products that are considered harmful or undesirable, in an attempt to prevent or reduce their use. The most common excise taxes are placed on motor vehicle fuel, cigarettes and tobacco products, and alcoholic products.
Payroll tax is a tax that is paid by an employer according to what is being paid to their employees. This tax is both federal and state and it is responsible for paying income tax as well as Social Security and Medicare.
Self-employment tax applies to anyone who is self-employed and operating a business as a sole proprietorship, contractor, a limited liability company that is not being treated as a corporation, or as a member of a partnership. If you fit under these specifications, you are responsible for filing an annual tax return and paying estimated quarterly taxes.
Minimizing taxes through selecting the correct business entity type, filing complicated tax forms and securing your business’s rights during an audit are all tasks an experienced tax law attorney can help your business with.
The Federal government, as well as some state and local governments, apply an income tax to individuals and corporations. The income tax rate that is applied depends on the amount of the person or entity takes in.
Generally, there is a sales tax imposed on the gross receipts from retail sales that are made in the state of Minnesota. However, there are many exemptions from sales tax that are different in Minnesota than in other states.
Use tax is essentially a “sales tax” for purchases you made outside of your state of residence if no sales tax was collected at the time of your purchase. This includes buying products online.