Six Applications of Tax Law

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Pen on a tax form

Students with an interest in tax law can choose from a broad range of specialties. By achieving an LLM in Taxation, you can enhance your chance of success by making yourself more attractive to employers, boosting your earning potential and gaining invaluable experience in the area of tax law in which you are most interested. You can also use this degree to make a career transition or find work abroad. Here are some of the areas of tax law in which you can specialize with an LLM in Taxation.

Income Tax Law

The current federal income tax system is based on the 16th Amendment , which states that Congress may collect taxes on income from any source. Familiarity with this area of the law is fundamental to an education in tax law, as it introduces students to the Internal Revenue Code.

Federal Tax Law

This specialty is closely related to income tax law. It covers the specifics of working with or within the Internal Revenue Service and United States Tax Court to resolve issues related to audits and other federal tax investigations and disputes.

International Tax Law

As the name suggests, this area of the law deals with individuals and organizations whose way of operating subjects them to the tax laws of more than one country. For example, multinational corporations may need legal staff and advisors with specialized knowledge of international tax law to ensure compliance in all of the nations and jurisdictions in which they do business.

Corporate Tax Law

Organizations that have registered as corporations—including limited liability companies (LLC), S and C corporations and other types of corporate entities—are subject to corporate tax laws. Professionals who specialize in this area may work on matters of business mergers and partnerships, executive compensation, planning for distribution of dividends, reorganization and asset liquidation.

Estate Planning

If you prefer to work with individuals instead of organizations, you may be interested in estate law. This legal area governs how individuals can transfer wealth and property upon their death. Gift tax law may also be part of estate planning, when individuals wish to reduce their estate tax liability by giving some of their property away during their lifetime. Students of this specialty will also study probate law, which governs the process of documenting an individual’s property and ensuring it is distributed appropriately.

Exempt Organizations

Some tax law professionals may choose to specialize in working with tax-exempt organizations. These may include religious, charitable, educational and nonprofit groups, among others. While they may not be required to pay some taxes, these organizations are often required to file documentation verifying that they meet certain criteria for exemption. They may not be exempt from all taxation.

These are just some of the specialized areas of tax law that you may choose to consider. Whatever aspect of the financial world in which you’re most interested, your degree can empower you to gain valuable knowledge in preparation for an exciting career.

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