Sacramento Tax Lawyer Hotels Hospitality
Operating a hotel or other type of hospitality chain requires a business owner to be meticulous when it comes to managing taxes for the business. However, with the complexity of tax code, it can be easy to be overwhelmed by the number of laws that a business owner must comply with. That is why you should consider looking for legal assistance to help resolve your tax issues. If you operate a hotel and require aid for a tax matter, you should consult with an experienced Sacramento tax lawyer for hotels and hospitality.
The NewPoint Law Group, LLP recognizes the many tax issues that a hotel operator may have to contend with, and we are here to alleviate your concerns. We can help you resolve your tax issues so that you can continue to operate your business. To schedule a confidential consultation to discuss your tax situation, contact the NewPoint Law Group, LLP at 800-358-0305. You can also contact the firm by using our online submission form.
Common Tax Law Issues for Hotels in Sacramento
The Sacramento, CA tax code contains a broad range of regulations that apply to various industries, like the hospitality industry. When operating a hotel, it is important to be aware of the various tax laws that can affect your business. The NewPoint Law Group, LLP can help you resolve the following tax law issues related to the hospitality business.
Transient Occupancy Tax
The Transient Occupancy Tax (TOT), also referred to as the bed tax, is a tax that is charged to guests that book a stay in a hotel, motel, or a similar property like an Airbnb. Specifically, the occupant must pay 12% of the rent charged for the room to satisfy the TOT. The TOT is only charged when a guest books a room for 30 consecutive days or less.
It is the obligation of the hotel operator to request the TOT from the guest at the same time that the rent is due. When collecting the TOT, hotel operators should ensure they thoroughly document the collection and payment of the tax. In California, TOT must be documented and preserved for three years in the event that the Treasury and Tax Collector (TTC) agency decides to investigate the reporting of the tax.
Tax audits can be performed by the Internal Revenue Service (IRS) for a variety of reasons. For example, an audit may be performed by the IRS randomly according to calculations made by an algorithm. Under other circumstances, a tax audit may occur because a taxpayer made a serious error when filing a tax return.
One common audit performed by California tax agencies is a payroll tax audit. Payroll taxes should be deducted from a worker’s paycheck for various programs and paid to California’s government. However, if an employer makes a mistake when calculating payroll taxes, the state may seek a tax audit to investigate the discrepancy.
If your company has become the target of an IRS audit, you should contact an experienced tax lawyer as soon as possible. You should not panic as an IRS tax audit does not mean that you committed a serious tax error. In many cases, the IRS simply requires information and documentation regarding previous tax decisions. However, there are some cases where a taxpayer could end up with a large tax bill due to previous tax return errors. Our firm can guide you through the tax audit process to help achieve a desirable outcome.
Compliance with Federal and State Tax Laws
Hospitals in Sacramento are subject to multiple tax laws from the federal government and from the state government. It is important to note that California’s tax regulations may contain different regulations than those provided by the IRS. That is why it is important to work with an experienced tax attorney that can help you remain compliant with federal and state taxes. Our firm can evaluate your tax situation to identify any issues that could potentially get you into trouble with the IRS or California’s tax board.
International Tax Issues
If you operate a hotel or similar business outside of the United States, your business may still be subject to U.S. taxes. The U.S. places a tax on worldwide income for a business. This means that operating a business in another country will still require to adhere to reporting requirements.
To aid in the enforcement of reporting requirements by international businesses, the U.S. has passed the Foreign Accounting Tax Compliance Act (FATCA). This law reaches out to various foreign countries to help ensure that companies do not attempt to hide income and assets from the U.S. government.
The NewPoint Law Group, LLP can help you remain compliant with FATCA and various other international tax laws that may apply to your hospitality business.
There are various other tax law issues that our Sacramento hospitality tax law firm is ready to help you resolve. If you are concerned about a tax issue that is affecting your business, you should waste no time in speaking with an experienced attorney.
Contact Our Experienced Sacramento Tax Attorney for Hotels and Hospitality
If you require legal assistance to deal with a tax law issue for your hotel, contact an experienced Sacramento tax attorney for hotels and hospitality. The legal team at the NewPoint Law Group, LLP possess decades of combined legal experience, and we would be pleased to use this experience to represent you. You do not have to resolve your tax issue alone. Contact the NewPoint Law Group, LLP at 800-358-0305800-358-0305. You can also contact the firm online.