Tax Law in Alabama

If you have a tax problem and want to sleep better tonight, consult with an Alabama tax attorney. Just making one phone call will reduce your stress.

In addition, we've found that many people feel reduced stress when they have a strong foundation of information. To that end, we'll explain:

  • When an AL tax lawyer can help you
  • The types of taxes an AL tax attorney deals with
  • How to find free non-legal tax help
  • How to find legal tax help

An Alabama Tax Lawyer Can Help with these Tax Problems

We recommend that you consult with a tax attorney about your individual situation, but in the meantime, here are some example situations wherein a tax lawyer can help.

  • The IRS is auditing Hawkeye's medical practice. Specifically, they are questioning his deductions for medical equipment as well as other business related deductions.
  • The IRS is investigating Radar's charitable organization for wayward goats. He is being accused of selling non-charitable related items in his charity's store. Radar is rightly concerned that he may lose his 501(c)(3) status.
  • Margaret and Frank have been accused of laundering money through their laundry business. They are both highly stressed and Margaret is concerned that Frank will turn against her.
  • Colonel Potter wants to work out an agreement with the IRS. The IRS says he owes $7,500 in back taxes and is bringing the Alabama Department of Revenue in on the case as well. The colonel can't sleep at night but insists he paid all of his taxes fair and square.
  • Charles Winchester III has a huge federal estate tax problem and doesn't want the government to get an additional dime. He wants to know how he can avoid having his estate pay any federal estate taxes when he dies.
  • Max hasn't paid taxes since he got released from the Army. He needs help filing back taxes and avoiding jail and huge penalties.
  • Trapper John wants to set up a business franchising bars for service men and women. He wants to pay only what he owes in taxes - and no more. He's wondering the best way to set up his business entity.

An Alabama Tax Attorney Handles These Kind of Taxes

Tax lawyers handle the entire "hand" of taxation. Take a look at your own hand - each finger represents a taxable event.

  • First Finger: When you earn money (income taxes). Income taxes include personal and business income, short-term and long-term capital gains, self-employment (Medicare - Social Security), and payroll (withholding) taxes.
  • Second Finger: When you own assets (real estate tax).
  • Third Finger: When you transfer assets (transfer taxes). Gift as well as mergers & acquisition taxes.
  • Fourth Finger: When you buy products and services (sales tax and use taxes).
  • The Thumb: When you die owning assets(federal estate and generation skipping taxes).

Where do I Find Alabama and Federal Tax Laws?

Some folks find peace in mind in going to the original source of laws. Here are the links for Alabama residents.

  • Federal Laws - Federal Tax Code, Regulations, and Guidance
  • State Laws - The Code of Alabama 1975
  • Examples of Alabama taxes:
    • Alabama income tax is marginal and is capped at 6%.
    • Alabama sales tax goes all the way up to 12%, depending on the locale of purchase.
    • Alabama does NOT collect an inheritance tax or an estate tax.
  • Local Laws - Google your own county and township (city, town, borough, village, etc.) laws.

How Do I Find Non-Legal Tax Help?

For educational tax information and tax forms, use the IRS and the Alabama Department of Revenue websites.

How Do I Find Legal Tax Help?

For peace of mind and to find an Alabama tax attorney, search our free site, www.attorneys.org, or ask the bar association or a friend for a referral.

Local Tax Attorneys