Tax Litigation in Bethesda

& Finding a Tax Litigation Lawyer

Tax litigation is the process of resolving tax disputes through the courts. People in Bethesda may pursue tax litigation for various reasons, including disagreements with the government over tax liability, issues with the collection of taxes, or problems with the enforcement of tax laws. Tax litigation can be a complex and time-consuming process, but it can also be an effective way to resolve tax disputes. For individuals and businesses struggling with tax issues, tax litigation may provide the best opportunity to resolve disputes and get the relief they need.

Different Types of Tax Litigation and What They Entail

Tax litigation is the process of resolving disagreements between taxpayers and the government. There are two main types of tax litigation: 

  • Administrative tax litigation involves disputes that are resolved through the administrative process, such as audits or appeals.
  • Judicial tax litigation refers to disputes that are resolved through the courts. The most common type of judicial tax litigation is a lawsuit, which can be filed in either federal or state court.

Taxpayers can also file for a declaratory judgment, which is a ruling from the court that determines the legal interpretation of tax law. In some cases, taxpayers may also seek injunctive relief, which is a court order that prevents the IRS from taking certain actions, such as levying taxes or seizing property. No matter what type of tax litigation you’re facing, it’s important to consult with an experienced tax attorney who can help you navigate the process and protect your rights.

How To Choose the Right Type of Tax Litigation for Your Situation

There are many different types of tax litigation, and it can be challenging to choose the most applicable to your scenario. Here are a few things to keep in mind when making your decision.

First, consider the amount of money at stake. If you stand to lose a significant amount of money, you may want to consider hiring a lawyer who specializes in tax litigation. This may initially seem like a hefty upfront cost, but it could save you money in the long run. Calculate the potential costs and benefits of litigation to help you decide whether to pursue it. Most often, the amount in dispute will determine whether it’s worth pursuing litigation. 

Next, think about the complexity of your case. If you have a very complex tax situation, consider hiring a lawyer who has experience dealing with similar cases. There is a lot of value in having someone who has already completed similar successful cases. Leveraging best practices can help you save time and money by avoiding mistakes that have already been made in the past. 

Finally, consider the time frame in which you need to resolve the case. If you need to resolve the case quickly, consider hiring a lawyer who specializes in expedited tax litigation. This can make the difference between a quick resolution and a long, drawn-out process of handling it yourself.

Deciding whether to hire a Bethesda lawyer for tax litigation can be difficult. However, if you keep these factors in mind, you should be able to make the best decision to maximize your success.

Steps in Pursuing Tax Litigation and What You Can Expect

The first step in any tax litigation case is to file a petition with the Tax Court. This is followed by a formal exchange of documents and information between the parties, called discovery. During discovery, both sides will have an opportunity to gather evidence and build their cases. After discovery is complete, the case will go to trial, where a judge will hear testimony from both sides and make a final decision. If either party is unsatisfied with the trial’s outcome, they may appeal the decision to a higher court. Throughout the process, it is vital to have experienced legal representation to keep an eye on the legal proceedings and confirm that everything is advancing in your favor.

How Delia Law Can Help With Tax Litigation in Bethesda

Delia Law is a boutique tax law firm specializing in tax litigation throughout the Bethesda community. Our team of experienced lawyers has a deep understanding of the tax code and the legal process, and we’re dedicated to protecting our clients’ rights. We have years of taking on both the IRS and the state of California in tax litigation cases, and we’re ready to put our Bethesda experience to work for you. The best practices for success in tax litigation cases are constantly evolving. Delia Law stays at the forefront of these changes to ensure we provide our clients with the best representation.

If you’re facing an audit or tax dispute, we encourage you to connect with us today. We’ll work with you to understand the details of your case and develop a strategy to achieve the best possible outcome. Once we take on your case, you can rest assured we’ll handle everything from start to finish, so you can focus on what’s important to you. Contact us today to learn more about how we can help you with your tax litigation needs.

Maryland-Specific Tax Laws

Maryland has a progressive tax system, which means the higher an individual’s income is, the higher the percentage they will pay in taxes. Maryland has special tax benefits for military retirees, lower income families, those paying for childcare, as well as for those aged 65 and older.

There are four types of taxes in Maryland:

  • State income tax. The state tax rate for personal income tax begins at 2%. This is applied to anyone making under $1,000 per year in annual income. It increases up to 5.75% for anyone making over $250,000 annually. This is one of the lower state income tax rates in the United States.
  • Local income tax. There is also a local income tax, which is levied by counties and cities. For convenience, these are withheld during income tax season by the state, and they vary based on the locality. For example, if you live in Allegany County, you paid a .0305 tax rate in 2021. This differs from residents of Baltimore County, who had a .0320 rate. It is important to note that this income is based on the county you live in, not where you work.
  • Sales tax. With each purchase in Maryland of a good or service, a 6% sales tax is automatically applied. This does not include every purchase. Groceries, prescription drugs, and gasoline are a few examples of items not subject to sales tax. However, a business is required to collect a 9% tax on any alcoholic beverages sold.
  • Property tax. You must pay property taxes in Maryland as well, and the tax rates vary by county. The average effective tax rate is 1.06%. While this might seem low, it is balanced by the high property values in the state. The median home value in Maryland is currently over $400,000 and varies based on proximity to the city of Maryland and other populated areas.

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