Taxation

Sassoon Cymrot Law, LLC’s tax lawyers regularly advise clients regarding the tax consequences of transactions and help structure business deals to minimize the tax effects, with emphasis on business formation, financing, reorganizations, mergers and acquisitions. As a component of the tax planning process, we deal with state, federal and international tax issues affecting individuals, partnerships, corporations, limited liability companies and other forms of business organizations. Additionally, we deal with tax controversies at all stages of the administrative process, and, if necessary, in the courts and before the Massachusetts Appellate Tax Board. Our tax lawyers also negotiate workouts with the tax authorities, and, if warranted, process offers in compromise of tax liabilities on behalf of our clients.

Tax Planning for Divorce

Sassoon Cymrot Law, LLC advises clients on how to structure divorce settlements to minimize tax liability. The resolution of tax, estate, pension, and other financial issues is an essential component of most domestic relations disputes. Sassoon & Cymrot advises clients on how to structure alimony, child support payments, and division of property (including closely-held businesses) to minimize tax liability. Our tax attorneys also advise on estate and gift tax planning in the context of divorce.

FAQ

Tax law is the body of rules and regulations that governs how individuals and businesses are taxed by federal, state, and local governments. It covers income tax, corporate tax, property tax, estate tax, sales tax, and more.

Tax avoidance is the legal use of strategies to reduce taxes (e.g., deductions, credits, retirement contributions). Tax evasion is the illegal act of not reporting income or falsifying records to avoid taxes. Evasion can result in fines or criminal charges.

Generally, keep records for at least 3 years from the date you filed your return, or 7 years if you claim a loss. Some documents (like property purchase records) should be kept permanently.

Capital gains tax is a tax on profit from selling assets like stocks, real estate, or a business. Short-term gains (held less than 1 year) are taxed at ordinary income rates. Long-term gains (held 1 year or more) are taxed at reduced rates (0%, 15%, or 20% depending on income).

Yes. An audit is a review of your financial records to ensure your tax return is accurate. Most audits are by mail (requesting documents), while others involve in-person interviews. Keeping organized records helps ease the process.