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Sacramento, CA Tax Attorney

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    For any of your tax planning compliance and controversy needs in Sacramento, contact the Lawyers at The Tax Law Offices of David W. Klasing today. Our experienced Tax Lawyers offer a reduced-rate initial consultation on new cases or engagements. Call (916) 290-6625 or 800-681-1295 or contact us online today to schedule a reduce rate initial consultation at our Sacramento tax law offices, or at one of our other convenient locations across Northern California.

    Dual-Licensed Sacramento Tax Attorney and CPA

    Those living in Sacramento may have unique employment and business opportunities, as businesses in the state capital of California often have multiple national and international opportunities.

    Understanding exactly how to proceed at tax time when you have income from multiple sources can be a source of confusion. If you have a foreign source of income, for example, you are required to report certain information to the IRS under U.S. federal tax laws. Not every tax advisor understands how these laws work.

    The federal or California scrutiny of personal and financial information can lead to a significant disruption in one’s life and result in sleepless nights and strain on a marriage. Additionally, the uncertainty and anxiety that is ordinarily associated with the audit process contribute to a negative perception, making it an undesirable, stressful and challenging ordeal for individuals, especially those that own businesses.

    If you are facing a sophisticated tax situation and you are unsure how to proceed, you may want to hire a Tax Attorney, a CPA, or a dually licensed tax Attorney-CPA, all of which are available to you via our team at the Tax Law Offices of David W. Klasing.

    We have the ability to provide tax help to businesses, employees in most professions, investors, high net worth individuals, expatriates, individual taxpayers, and others. No matter what kind of Sacramento tax services you require, contact the Tax Law Offices of David W. Klasing today to schedule a 10-minute reduced-rate initial consultation with an experienced dual-licensed Tax Attorney and CPA. We will get you sleeping soundlessly again and are ready to help.

    One of The Best Tax Audit Attorneys in Sacramento

    The Tax Law Office of David W. Klasing has earned nationwide recognition for consistently delivering an unparalleled level of representation in a broad spectrum of high-risk tax issues affecting businesses, property owners, expatriates, investors, cryptocurrency miners, high net worth individuals (HNWIs), and other taxpayers throughout California state. With offices conveniently located in Sacramento to serve taxpayers throughout the region, our diligent, award-winning team of tax professionals includes tax attorneys, CPAs, dually licensed attorney-CPAs bringing nearly three decades of combined experience for the full range of legal and financial tax planning, tax preparation, Federal and California civil audit / criminal tax investigation defense services.

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    Whether your tax issue involves a foreign bank account, unfiled tax business and personal returns, an audit or a criminal tax investigation, tax issues associated with divorce or estate planning, questions about effective tax planning for your business, or another question concerning California state, federal, or international taxation, count on the Sacramento Tax Lawyers and CPAs at the Tax Law Office of David W. Klasing for sound and strategic financial and legal guidance. Contact us online here or call (916) 290-6625 or (800) 681-1295 to schedule your reduced-rate initial consultation today. Our practice areas for federal and California state tax audits encompass (but are not limited to) the following:

    Why Should You Choose a Dual Licensed Tax Attorney and CPA in Sacramento?

    Recent government action suggests that IRS audits will occur more frequently and go further in-depth than ever before. President Joe Biden is wasting no time in bolstering the IRS with an additional influx of employees scheduled over the next decade. The proposal comes as part of a larger package that includes $80 billion for the department over the same time frame. Accordingly, the IRS has developed sophisticated, computerized systems designed to catch taxpayers who submit incorrect or fraudulent returns.

    This aggravation is based on the ever-widening tax gap, or the difference between total tax revenue owed and total taxes paid annually. The IRS is concentrated on changing this narrative. While the renewed charge to investigate and prosecute tax evasion will almost assuredly lead to the discovery of more tax cheats, it will also likely entangle honest taxpayers who made simple mistakes in the process.

    Simple mistakes can quickly snowball into major issues when it comes to taxes. The best way to head off these problems early is to seek the counsel of our dual-licensed Sacramento, CA Tax Audit Lawyers and CPAs. We can help you assess your past and upcoming filings for any potential issues. If you do have any history of noncompliance, our dual licensed Tax Lawyer & CPA will be able to help you reduce or avoid civil and criminal tax penalties by engaging in the IRS Voluntary Disclosure Program. However, to avoid doing any additional harm, it would be wise to never attempt to voluntarily disclose past noncompliance without first seeking advice from our experienced counsel at the Tax Law Offices of David W. Klasing.

    If you are already facing a civil tax audit, eggshell audit, reverse eggshell audit or a criminal tax investigation, it is imperative to get legal help if you haven’t done so already. No matter what type of tax audit, enforcement action or criminal tax investigation you are facing, our dual-licensed Sacramento IRS Audit Representation Attorneys & CPAs can appear with you or potentially in your place so that you can avoid incriminating yourself further or exposing yourself to an overly stressful and intimidating situation. Let us shoulder the burden of these tax challenges for you, ensuring that you receive the meticulous and empathetic representation you deserve during this critical time.

    Types of Audits the IRS May Initiate

    The IRS utilizes several different types of audits when examining or investigating taxpayers. Correspondence audits, office audits, and field audits are audits that differ by where and how they take place. Correspondence audits occur through the mail, and office audits occur at an IRS revenue agent’s office. A field audit is much more detailed and occurs at the taxpayer’s home or place of business. It is important to have a dual licensed Tax Lawyer & CPA to interface with the IRS in all these audits; however, the field audit is particularly risky since the IRS agent could gain access to huge amounts of financial information that they might aim to use against you and your colleagues. Click here to learn more about the type of tax audit you might be facing.

    The IRS can conduct either a civil tax audit or a criminal tax investigation. Typically, an IRS Special Agent will conduct a criminal tax investigation. Special Agents from the IRS Criminal Investigation division will identify themselves and read the taxpayer their non-custodial Miranda Rights. However, evidence for a criminal tax investigation can be collected during a civil audit and later referred for criminal tax investigation. Occasionally, a criminal tax investigation will occur concurrently with a clandestine civil audit, thus being obscured by the civil audit. It is possible that a seemingly benign civil audit can lead to potential criminal tax liability. That is why involving our dual licensed Criminal Tax Defense Attorneys & CPAs early in any type of audit is the most effective way to identify underlying criminal tax issues in your audit and take action to mitigate any resulting criminal tax exposure.

    Field Audits

    Field audits conducted at a business entail an IRS representative reviewing financial records, interviewing employees, and even touring the offices or other facilities of the business. A large business with many physical locations and employees could undergo an audit like this for weeks or months.

    The IRS will formally request the documentation it wants to review during a field audit, but the total information they could discover while on site is much larger than usually provided in a correspondence or office audit. Employee interviews can unintentionally yield a tidal wave of potentially damaging information. Employee interviews cover various business-related topics, and each question is designed to elicit information for further investigation. Legal counsel can prepare interviewees so that they understand how best to respond to the IRS revenue agent without providing more information than necessary and how to respond to inquiries in a manner that mitigates any risk inherent in the client’s fact pattern.

    A dual licensed Tax Lawyer & CPA should be present throughout the entire field audit, especially in every owner or employee interview. If a line of questioning in an audit begins to sound like a clandestine criminal tax investigation, our attorneys will intervene to achieve damage control. Our attorneys will interface with IRS representatives on your behalf and monitor the audit to identify potential risks and implement appropriate mitigation strategies. For information about other aspects of the audit process, readers may be interested in our related audit articles, which explore topics such as:

    Correspondence Audits

    The least invasive form of a government audit, correspondence audits (also referred to as “mail audits”), take place entirely through traditional mail, e-mail, fax, and phone conversations. Assuming you cooperate with the government’s requests for more information, you likely will never have to confront IRS agents directly in person, and your case may be resolved in roughly three to six months.

    Office Audits

    If the government institutes an office audit, you will have to appear at a local IRS field office with all requested documentation that supports the financials in question. The location, as well as the date of the audit, will be indicated on the notice the IRS sends to inform you of the audit. You can have your dual licensed Tax Lawyer & CPA present at the office audit to assist you in your cooperation and to ensure that you are being dealt with fairly. Compliance with an office audit’s requests usually leads to resolution within three to six months of the taxpayer’s visit date.

    As the IRS points out (bold our emphasis), “A correspondence audit can expand and become an in-person (field) audit, particularly if the issues grow more complex or the organization does not respond.” You need the services of a tax lawyer during correspondence audits to avoid incurring civil or criminal tax penalties. Our dual licensed Sacramento Tax Lawyers and CPAs can help you reconstruct the necessary records and mitigate any civil damages or criminal exposure for errors you made on the returns under audit. We will appear alongside you for an office audit if you have serious concerns about what was claimed on the return under audit.

    Eggshell Audits

    Taxpayers, who intentionally or inadvertently materially understate revenue, overstate deductions, or claim credits they are not entitled to and have not yet voluntarily disclosed the misstatements, are liable for a high-risk eggshell audit. This is the industry term for a civil tax audit where the taxpayer knows about a material compliance issue underlying the returns under audit, but the IRS representative does not. As a result, the taxpayer, and frequently their representative, is figuratively walking on eggshells around the auditor to avoid the issue from coming to light, hence the colloquial description of this type of audit. When such an audit occurs, it may be tempting to lie to that auditor to attempt to avoid discovery or disclosure of the underlying noncompliance. However, lying to a federal agent is a felony in its own right.

    If an audited tax return contains material, intentional or inadvertent noncompliance, it is extremely beneficial to seek out the counsel of our dual licensed Tax Lawyers & CPAs at the outset of the audit. Whether the error was intentional or accidental, you should proactively address the error before the auditor discovers the issue. Our attorneys can evaluate the error to determine if it is a material misstatement, present options to remedy it, and communicate with the IRS.

    One of the best strategies to handle an eggshell audit is to avoid ending up in that situation altogether. Hiring a dual licensed Tax Lawyer & CPA before audits occur can assist with identifying issues and developing a plan to address them. There could be many areas of uncertainty in complex tax returns, especially for companies with foreign assets. Our dual-licensed Tax Lawyers & CPAs can advise on these grey areas of tax law before filing tax returns to minimize the risk of non-compliance and subsequent audits. Click here to learn in detail about how to protect yourself during high-risk eggshell audits.

    Criminal Tax Liability and Reverse Eggshell Audits

    An audit in which the IRS revenue agent secretly seeks confirmation of the intent a taxpayer had when they materially misstated their returns is informally known as a reverse eggshell audit. A reverse eggshell audit is far more dangerous than an eggshell audit. This audit typically comes before a criminal tax investigation and is dangerous because the auditor can collect evidence for the subsequent or simultaneous criminal tax investigation without the taxpayer knowing that the IRS already considers it a criminal tax case. This practice eliminates notice of the clandestine criminal tax investigation and does not allow taxpayers to utilize their constitutional criminal defense rights against self-incrimination and unreasonable searches and seizures. Reverse eggshell audits can also consist of simultaneous civil and criminal tax investigations. Also, what can start as only a civil audit can be later referred to a Fraud Referral Specialist or an IRS Special Agent for evaluation as to criminal tax liability.

    While part of the definition of a reverse eggshell audit is that the taxpayer is unaware of what the auditor is seeking, a dual licensed Tax Lawyer & CPA can look out for signs of this type of audit. Our experienced attorneys have witnessed enough high-risk audits to recognize when an auditor’s actions imply an ulterior motive. Questions that focus on the intent of a particular tax-related choice, expanding the tax return years under audit, and asking for excessive copies of information could all indicate that the civil audit is obscuring or becoming a criminal tax investigation. Once a civil auditor refers a case for criminal tax investigation, they may suddenly stop their audit and become unreachable. Additionally, an IRS Special Agent may secretly continue the audit or openly take the place of the civil tax auditor.

    Such unusual audit occurrences indicate that a criminal tax investigation has begun or is being initiated. At this point, engaging our Sacramento Dual Licensed Criminal Defense Attorneys & CPAs services at the onset of a high-risk audit / criminal tax investigation will maximize the possibility of a favorable outcome without escalating to criminal tax charges. We have never had a federal or Californiaaudit client criminally prosecuted for tax crimes. We excel at representing clients under high-risk Federal or California state tax audits, especially where they blatantly cheated on the tax return under audit and thus fear criminal tax prosecution. When facing high risk tax audits from agencies like the IRS, CDTFA, EDD, or FTB, certain red flags, such as destroyed records, underreported income, badges of fraud, or unfiled returns, can intensify the examination, and may lead to high-risk eggshell and reverse eggshell tax audits. As such, residents and businesses must be aware of potential criminal tax violations and the signs indicating that they might be under a more rigorous investigation by the IRS’s Criminal Investigation Division (CID).

    Our attorneys can help you avoid being blindsided by a criminal tax investigation, mitigate existing risks, and protect your rights as necessary. In addition to tax deficiency payments plus interest, audits can result in additional financial penalties, criminal tax charges, increased future scrutiny, and, worst-case scenario, prison time. These can be huge consequences for a taxpayer. Do not face these risks alone – ask our dual-licensed Tax Lawyers & CPAs for help today. We are here to provide aggressive, informed representation in areas including:

    Get Back into Tax Compliance without Facing Criminal Tax Prosecution with our dual-licensed Voluntary Disclosure Attorneys and CPAs

    If you’re in Sacramento and realize that you could face criminal tax prosecution over a history of blatantly cheating on your tax returns if discovered, voluntarily disclosing this history by knocking on the IRS’s door before they bang down your door is the most crucial step towards resolution without facing criminal tax prosecution. This program is crucial for individuals who have willfully understated their federal tax liabilities. It provides a systematic and secure avenue to rectify their tax status while avoiding criminal tax prosecution.

    Similarly, the State of California’s Franchise Tax Board (FTB) and the California Department of Tax and Fee Administration (CDTFA) provide methods for non-compliant taxpayers in Sacramento to regain compliant status by coming forward with the details of their failure to comply with the California state tax code. The path to voluntary disclosure to the FTB depends on whether you are an in-state or out-of-state filer.

    Our Sacramento, CA Voluntary Disclosure Attorneys & CPAs navigate the complexities of various federal and California state voluntary disclosures, including domestic, offshore, CDTFA (BOE), and FTB voluntary disclosures, streamlined procedures, and delinquent FBAR and international information return submission procedures. If you have financial accounts abroad, make sure you are reporting the assets correctly – and avoiding costly tax penalties – by working with our Sacramento Foreign Account Tax Compliance Attorneys & CPAs . As long as a taxpayer who has willfully committed tax avoidance (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the federal or California state tax non-compliance through a domestic or offshore voluntary disclosure before the IRS or the California state agency has started an audit or criminal tax investigation/prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply. We deal with:

    IRS, EDD, CDTFA (BOE) and FTB Tax Audit Appeals and Litigation Attorneys

    A tax audit, also called an “examination,” is the process of reviewing a taxpayer’s personal and/or business financial records to gauge the truthfulness and accuracy of tax information submitted to the IRS, EDD, CDTFA (BOE) or FTB. Taxpayer examinations can be carried out at the California state or federal level, and may involve different sets of audit procedures or statutes of limitations depending on factors like:

    • The reason for the audit
    • Whether willful tax fraud or serious errors are suspected (“egg shell audit”)
    • Whether the examination is a field audit, an office audit (desk audit), or a correspondence audit

    The IRS tax audit lawyers and FTB tax audit attorneys at the Tax Law Office of David W. Klasing represent entities and individuals in all types of California state and federal tax audits, including but not limited to California employment tax audits, California sales tax audits, foreign account tax audits, FBAR audits, and worker classification audits.

    It is a costly mistake to assume that the outcome of an audit is guaranteed to be accurate or even remotely appropriate. On the contrary, in our experience, there are common instances in which the IRS, FTB, CDTFA (BOE), or EDD will attempt to overstep its authority and attempt to secure a substantially excessive tax assessment. Frankly, the taxing authorities get the facts and the law wrong quite often.

    Our seasoned dual licensed Sacramento, CA Audit Appeals and Tax Litigation Attorneys and CPAs specialize in navigating both IRS and California state tax disputes, adeptly managing sensitive audits (where you cheated on the tax returns under audit) to ensure a civil resolution and avoid criminal tax prosecution. This incorporates representing clients in disputes involving IRS audits, disputes with the CDTFA (BOE) and FTB, claims for refund, tax collection defense, innocent spouse relief, criminal tax defense, and more. Whether it’s handling cases of criminal tax exposure, guiding you through a civil tax audit, eggshell audit, reverse eggshell audit, or defending against a criminal tax investigation, the expertise of our experienced counsel is invaluable. As an experienced litigator, David W. Klasing Esq. M.S.-Tax CPA can represent you in the Federal or California Tax Court.

    Thus, we can provide representation should you disagree with the outcome of the audit, in which case you may generally dispute, appeal or “protest” an auditor’s conclusions by compiling comprehensive, fact-based evidence supporting your logic. If necessary, our Sacramento California State FTB, EDD, CDTFA Tax Litigation Attorneys & CPAs stand ready willing and able to litigate your tax case but we find that the taxing authorities are more than willing to settle on fair and equitable terms once we convince them that the law and facts are on your side and we can prove it.

    Whether you have recently been notified that you were selected for an audit and need help navigating the next steps, or have already been audited and are now seeking California state or IRS appeals representation, our aggressive IRS, FTB, CDTFA (BOE) and EDD negotiators (where necessary Tax Litigators) are ready to act on your behalf. To date, we have never lost in tax court. We won’t take your case if we don’t believe we’ll win. The IRS’s 98% settlement rate is why we’ve never stepped foot in tax court, sparing our clients the most expensive part of tax litigation. Our services include (but not limited to) representing clients in the following scenarios:

    International Tax Law Attorneys in Sacramento

    The ownership or control of a checking account, savings account, business account, foreign Bitcoin wallet/exchange, or other foreign source of taxable income that is located in a foreign country or territory may trigger foreign income and information reporting requirements under assorted federal laws. The two most prominent examples of this are:

    1. The Bank Secrecy Act (BSA), which establishes a requirement to disclose foreign bank accounts by filing an FBAR(also known as a Foreign Bank Account Report or FinCEN Form 114, formerly Form TDF 90-22.1). You may need to file an FBAR if your offshore income, such as the contents of one or more overseas bank accounts, exceeded $10,000 during the relevant tax year.
    1. The Foreign Account Tax Compliance Act (FATCA), which establishes a requirement to disclose offshore earnings by filing Form 8938 (Statement of Specified Foreign Financial Assets). You may need to file Form 8938 if your foreign earnings exceeded $50,000 during the relevant tax year.

    Failure to comply with either requirement can cause the IRS to take actions ranging from assessing civil penalties (fines) for merely negligent actions or inactions, through recommending you to the Department of Justice (DOJ) for federal prosecution where income and foreign information reporting requirements are willfully omitted or misstated. However, you may be able to avoid these issues by filing amended returns through a domestic or expat streamlined disclosure program, or taking other corrective measures. Consult with our international FBAR attorneys, OVDP attorneys, or tax attorneys for expats for immediate guidance.

    If you think you may need to file an FBAR this tax season – or if you have questions about how best to approach reporting undisclosed foreign accounts – the Domestic and International Business and Tax Attorney in Sacramento, CA at the Tax Law Office of David W. Klasing can help. Our award-winning team, with a long track record in international tax representation, ensures compliance, safeguards your legal rights, and strategizes to minimize IRS tax civil and criminal tax and foreign information reporting penalties. Furthermore, our association with Marc Schwartz, a dually licensed International Tax Attorney and CPA, greatly enhances our ability to address the often complex federal offshore tax planning, compliance, and controversial implications surrounding engaging in international business and the associated mandatory information reporting. Contact our Sacramento office at (916) 290-6625 or (408) 643-0573 or contact us here online for assistance on the following:

    Sacramento Tax Lawyers for Individuals and Businesses

    When it comes to the U.S. Tax Code or California state’s Revenue and Taxation Code, errors can be costly – not only to the taxpayer, but also to his or her family, business, or professional credentials and reputation. Even in cases where this no danger of noncompliance, the taxpayer can still suffer financial losses by overlooking or misunderstanding the complex regulations surrounding tax credits, tax deductions, tax exemptions, or investment opportunities, all of which are undergoing dramatic changes in light of the tax reform legislation, or Tax Cuts and Jobs Act (TCJA) passed in 2017.

    Whether you need to defend yourself against allegations of willful tax fraud or negligent tax mistakes or are simply looking to lighten your tax burden and preserve your wealth by using the current tax laws more efficiently, count on the Tax Law Office of David W. Klasing for personalized guidance, courteous service, and tireless advocacy. If you are starting a business in Sacramento, preparing for an employment tax audit, considering a merger, appealing a Franchise Tax Board decision, or rethinking your business plan after the Tax Cuts and Jobs Act, look to the Tax Law Office of David W. Klasing for business bookkeeping and accounting services you can rely on. Our Sacramento Dually Licensed Business Tax Attorneys &CPAs provide services including, but are not limited to, the following:

    Sacramento Employment Tax Attorneys for Corporations, LLCs, and Partnerships

    Taxpayers are subject to complex rules for filing and, in many cases, paying taxes to the IRS or California FTB or EDD. Some of the most stringent regulations apply to business owners and employers, who are subject to numerous requirements that do not affect the average taxpayer. For example, employers typically have a legal responsibility to withhold from employee pay, in some cases match, and remit to the IRS payroll taxes, which are alternately known as “FICA taxes” or “trust fund taxes.” These employment tax requirements generally involve state and federal income tax, the Social Security Tax, the Medicare Tax, and in cases involving high-earning employees, the Additional Medicare Tax (AMT).

    Employers frequently run into legal trouble when they fail to withhold, match, and/or deposit payroll taxes as required, which can result in a trust fund recovery penalty (TFRP) or even criminal charges arising from willful employment tax evasion. Moreover, business owners and entrepreneurs must think carefully about strategic short-term and long-term business tax planning to protect the company’s bottom line. To help employers better meet these goals, our Sacramento business tax attorneys and accountants offer a diverse range of tax planning and defense services for corporations, limited liability companies (LLCs), partnerships, and other types of business entities, including but not limited to accounting and bookkeeping, business entity selection, business succession planning, tax services for clergy, and tax planning for foreign companies.

    California Franchise Tax Board (FTB) Audit Representation

    The California Franchise Tax Board (FTB) is responsible for audits related to your California income tax returns. These audits will usually have to do with suspected underreporting of the income you made from various sources or overstated deductions. The FTB is also informed of the results of any federal audit, and they will either open their own audit or will piggy-back off a federal audit and send you a bill for what you owe to the state based on the results of the federal audit along with additional penalties for not voluntarily amending.

    There are some instances where the FTB will conduct their own audits into California specific issues, like whether you are properly claiming state residency. Note that even if an IRS audit shows that you do not owe money to the federal government, it is possible that you owe money to the state because of differences in tax law at the state level. A tax attorney can help you understand Sacramento IRS Audit Representation and issues unique to the state and work out a payment plan with the FTB if you do indeed owe.

    If you disagree with the results of an FTB audit, you may challenge or “protest” the outcome. If FTB has contacted you and you are aware that you made false statements or used inaccurate reporting techniques when filing your taxes, do not face the audit alone. Our experienced dual-licensed Sacramento FTB Audit Appeals Attorneys and CPAs will act as a barrier and stop the examining agent from inferring criminal admissions/confessions from your actions and words.

    It is never prudent to ignore an FTB notice, even if you disagree with its findings or are unsure precisely what the notice is in reference to. Contrary to being forgotten, interest on any unpaid tax debts will simply continue accruing until your debt is satisfied. Click on the following to learn more:

    California Employment Development Department (EDD) Audit Representation

    The California Employment Development Department (EDD) is generally concerned with conducting audits related to businesses paying the proper payroll taxes. Businesses are required to withhold payroll and income taxes from their employees’ checks and remit them to the proper government agency. If you fail to take the money out or fail to send it where it is supposed to go, you could be charged back taxes and associated penalties.

    Many audits by the EDD are related to whether an individual should be classified as an employee or an independent contractor. Employers are required to withhold payroll and income taxes for their employees but not for independent contractors who work for them. The EDD will often challenge the classification of an individual as an independent contractor who they believe should be classified as an employee. The process for determining this is complex, and an experienced tax lawyer can help you work to attempt to prove that you have been classifying workers correctly or achieving damage control where you have not. Our experienced Sacramento EDD Tax Audit Attorneys & CPAs can help gather evidence to show the EDD you have properly classified workers as independent contractors.

    Note: with the passing of AB5 in 2019, worker classification audits are on the rise. Issues that can increase the odds of facing an employment tax audit or exacerbate the consequences of such an audit include:

    Sacramento Criminal Defense Lawyers Handling Tax Evasion Charges

    The IRS has a fearsome reputation for aggressively enforcing compliance with federal tax laws. It takes only a glance at the IRS’ criminal enforcement data to see why this is so, considering that out of 2,744 recommendations for prosecution in 2016, a total of 2,672 – about 97.4% – culminated in criminal tax convictions.

    Making this even more worrisome for taxpayers are the harsh penalties that can result from criminal tax charges: for instance, the five-year statutory maximum sentence and $100,000 criminal fine which may be imposed for a single count of willful tax evasion under 26 U.S. Code § 7201. In addition to sentences and criminal fines provided by various criminal tax statutes, defendants in criminal tax cases are also at risk of supervised release, IRS restitution, misdemeanor or felony records, and, in the cases of certain professionals or business owners, irreversible damage to one’s career or company. This is especially true for anyone licensed under California Business and Professions Code (i.e., Lawyers, CPAs, Engineers, Doctors, Architects, Dentists, Veterinarians and many more) where professional discipline that invariably follows a Federal or California criminal tax prosecution, will often result in the loss or suspension of California licensure.

    Our criminal tax defense attorneys are qualified to represent defendants in federal court against a range of serious charges, such as income tax evasion (evasion of assessment/payment), willful failure to collect or pay over tax (payroll tax fraud), failure to file, supply information, or pay tax, or making false statements to the IRS or other government tax authorities. These and other tax offenses may be alleged against individuals, corporations, or both.

    If an IRS criminal investigation has already begun against you, or if you suspect that a Federal or California Criminal Tax Investigation may be initiated, it is critical that you contact our Sacramento Tax Evasion Defense Attorneys + CPAs for an explanation of your rights, your responsibilities, and what steps to take next. Our IRS tax attorneys may be able to, at best, minimize the assessment of additional tax penalties and interest by keeping an issue purely civil, to at worst, minimizing jail time served in the event of a criminal tax conviction. However, the longer you wait to start planning a tax defense strategy, the more difficult it will be to confront the potential criminal tax charges and maintain your freedom successfully. Contact our Sacramento criminal tax defense attorneys right away for help with defending a Federal or California criminal tax charge, high risk egg shell audit, or criminal tax investigation.

    Struggling with Cryptocurrency Taxation in Sacramento?

    As of 2024, the Internal Revenue Service (IRS) has significantly intensified its efforts to ensure compliance in cryptocurrency reporting, focusing especially on large amounts of unreported income. This enhanced focus can be attributed to the increasing mainstream acceptance and usage of digital assets, which necessitates more robust regulatory oversight to ensure tax compliance. As part of its “Operation Hidden Treasure,” the IRS has been intensifying its efforts to monitor and enforce tax compliance on cryptocurrency transactions. The complexity arises mainly due to the perceived anonymity associated with many crypto wallets, making it challenging to track and tax transactions between unknown parties. To overcome this obstacle, the IRS has been effectively utilizing John Doe summonses. This legal instrument allows the IRS to petition a federal court to compel exchanges to release user information. This information is crucial for the IRS to determine the identity of U.S. taxpayers who may have failed to report their earnings from cryptocurrency transactions.

    Our Sacramento Bitcoin and Virtual Currency Tax Attorney & CPA have extensive experience in all facets of cryptocurrency, from understanding the nuances of airdrops to addressing challenges faced by individuals whose crypto was held with a brokerage that has since folded. The exposure is even more significant for those who’ve ventured offshore with cryptocurrency. However, there’s a silver lining: taxpayers who’ve inadvertently committed tax discrepancies can often self-report through voluntary disclosure, potentially avoiding criminal tax prosecution and benefiting from reduced civil tax penalties. Whether you’re dealing with Bitcoin, Ethereum, Litecoin, or any other virtual currency, call us today at 916-290-6625 or schedule a reduced-rate initial consultation here, and we will successfully guide you through the record-keeping and reporting procedures required to file a tax return. We will also fight vigorously for those whom the IRS has accused of failure to report and help them stave off more severe civil and criminal tax penalties. Read our story “Tax Fraud is Going Virtual” to know more about virtual tax evasion. For more information, see the following:

    Dual Licensed Sacramento Sales Tax Attorneys and CPAs

    Businesses in Sacramento that are responsible for collecting sales tax must ensure they accurately remit these taxes to the California Department of Tax and Fee Administration (CDTFA). Discrepancies, such as failing to remit collected taxes or improperly taxed transactions, can lead to California sales tax audits by the CDTFA. Considering the critical role of sales tax, which forms a significant portion of California’s revenue, sales tax audits are frequent in California, particularly for businesses in high-risk sectors. If your Sacramento business is selected for a sales tax audit, it’s crucial to stay calm and immediately seek the assistance of our dual-licensed Sacramento, California, Sales Tax Audit Attorneys & CPAs.

    Given the recent changes in California sales tax laws, particularly following the U.S. Supreme Court’s decision in Wayfair expanding state authority over online sellers, it’s beneficial to have our dual-licensed Sacramento Internet Sales Tax Attorneys & CPAs guide you. Our services include internet sales tax audit representation, small business tax planning, and bookkeeping services, leveraging our deep understanding of the evolving business tax landscape. We are well-versed in the intricacies of California sales tax nexus and the differences between sales and use tax. Rely on our Sacramento Sales Tax Attorneys and CPAs for comprehensive advisory and representation, ensuring that your business navigates and flourishes within California’s complex regulatory framework.

    In Need of Tax & Estate Planning in Sacramento?

    Our dual-licensed Sacramento Estate & Income Tax Planning Attorneys and CPAs represent estate planning clients throughout the globe with convenient offices in Sacramento, San Francisco, and the surrounding California counties. Our custom estate planning representation ensures that your final wishes are honored and helps you provide for your loved ones in your absence. Combining our financial planning, legal, tax, and accounting skills and knowledge, we are committed to helping you preserve your wealth for future generations. Estate planning is a necessary process that a knowledgeable lawyer can compassionately and effectively handle. Our services include creating tax-efficient estate plans that reflect your goals, assisting with preparing and filing estate tax returns, and offering expert advice on gift tax implications.

    Estate planning involves multiple components, which need to be customized depending on the unique set of facts and circumstances underlying your financial situation, such as the size of your estate, the number of heirs involved, and the complexity and location of your domestic and international assets, including offshore bank accounts. Our skilled California Estate & Income Tax Planning attorneys and supporting staff of CPAs and CPA candidates have decades of experience assisting clients with wills, trusts, advanced healthcare directives, and other estate planning and administration matters. Our Estate Planning services include:

    How Do I Choose a Tax Lawyer or CPA in Sacramento?

    For many taxpayers seeking legal help, their concerns may range from proper filing under complex circumstances, amending past filings to regain compliance, or defending against potential or upcoming audits or IRS, FTB, CDTFA or EDD criminal tax investigations. In many cases, the taxpayer may be dealing with more than one of these issues, even if they do not realize it at the time.

    For this reason, the legal representation that the taxpayer seeks out should be able to handle all of their potential issues. Many tax law firms specialize in one or two areas but do not have the necessary experience in other areas. This could leave the taxpayer having to seek out separate counsel to help them with other issues. This additional step could lead to higher costs, additional wasted time, and potential miscommunication errors, ego battles and territorialism between law and accounting firms that could exacerbate the existing issues.

    Therefore, when considering who to use for your tax law representation, you should carefully consider all the services that your potential service providers can provide. This is why the Tax Law Offices of David W. Klasing is your best option. Our firm boasts our Sacramento State Audit Tax Attorneys who are also Certified Public Accountants (CPAs), meaning that we have experience in various areas of multidisciplinary tax law. Our circumspect approach provides our clients the benefit of having a one-stop shop for all their tax planning, compliance, and controversy needs.

    Another benefit of our services that you should consider is our localized operations. The Tax Law Offices of David W. Klasing operates throughout the State of California, including at our Sacramento offices. Being geographically close to our clients means we can easily accommodate short-notice meetings or in-person representation at office and field audits or court hearings. David Klasing is an instrument rated and licensed private pilot and owns a very fast yet affordable airplane that enables him to travel to virtually any point within California with two hours of getting airborne. The firm does not typically charge for travel time.

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    Contact the Tax Law Offices of David W. Klasing in Sacramento Today

    Our skilled taxpayer advocates combine more than 20 years of experience representing taxpayers before federal judges, auditors from the Internal Revenue Service (IRS) and Franchise Tax Board (FTB), California Department of Tax and Fee Administration (CDTFA formerly know as the BOE), Employment Development Department (EDD), Administrative Law Judges (ALJs) with the Office of Tax Appeals (OTA), and others. Whether you are potentially facing felony tax charges, have questions about tax planning for your new business, need guidance on unfiled or delinquent tax returns, or require assistance with another tax matter, such as buying commercial property or passing down an inheritance, you can expect meticulous, aggressive, and client-focused service when you are represented by the Tax Law Office of David W. Klasing.

    To arrange a reduced-rate initial consultation with an experienced tax attorney in Sacramento, contact our main offices by calling (916) 290-6625 or (800) 681-1295 or visit our contact us page online to book your appointment.

    180 Promenade Circle, Suite 300, Sacramento, CA 95834

     

    Why Hire a Sacramento Dual Certified Tax Attorney & CPA, Reason #1

    Confidentiality

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    Why Hire a Sacramento Dual Certified Tax Attorney & CPA, Reason #2

    Managing Liability

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    Why Hire a Sacramento Dual Certified Tax Attorney & CPA, Reason #3

    Negotiation Skills

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    Why Hire a Sacramento Dual Certified Tax Attorney & CPA, Reason #4

    Financial Expertise

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    Why Hire a Sacramento Dual Certified Tax Attorney & CPA, Reason #5

    Avoiding Conflicts

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    Why Hire a Sacramento Dual Certified Tax Attorney & CPA, Reason #6

    Saving Money

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    International Tax Law Attorneys in Sacramento, CA

    The ownership or control of a checking account, savings account, business account, foreign Bitcoin wallet/exchange, or other foreign source of taxable income that is located in a foreign country or territory may trigger foreign income and information reporting requirements under assorted federal laws. The two most prominent examples of this are:

    1. The Bank Secrecy Act (BSA), which establishes a requirement to disclose foreign bank accounts by filing an FBAR (also known as a Foreign Bank Account Report or FinCEN Form 114, formerly Form TD F 90-22.1). You may need to file an FBAR if your offshore income, such as the contents of one or more overseas bank accounts, exceeded $10,000 during the relevant tax year.
    2. The Foreign Account Tax Compliance Act (FATCA), which establishes a requirement to disclose offshore earnings by filing Form 8938 (Statement of Specified Foreign Financial Assets). You may need to file Form 8938 if your foreign earnings exceeded $50,000 during the relevant tax year.

    Failure to comply with either requirement can cause the IRS to take actions ranging from assessing civil penalties (fines) for merely negligent actions or inactions, through recommending you to the Department of Justice (DOJ) for federal prosecution where income and foreign information reporting requirements are willfully omitted or misstated. However, you may be able to avoid these issues by filing amended returns through a domestic or expat streamlined disclosure program, participating in the Offshore Voluntary Disclosure Program (OVDP) before September 2018, or taking other corrective measures. Consult with our international FBAR attorneys, OVDP attorneys, or tax attorneys for expats for immediate guidance.

    IRS, EDD, CDTFA (BOE) and FTB Tax Audit and Appeals Representation in Sacramento

    A tax audit, also called an “examination,” is the process of reviewing a taxpayer’s personal and/or business financial records to gauge the truthfulness and accuracy of tax information submitted to the IRS, EDD, CDTFA (BOE) or FTB. Taxpayer examinations can be carried out at the state or federal level, and may involve different sets of audit procedures or statutes of limitations depending on factors like:

    • The reason for the audit
    • Whether willful tax fraud or serious errors are suspected (known as an “egg shell audit”)
    • Whether the examination is a field audit, an office audit (desk audit), or a correspondence audit

    The IRS tax audit lawyers and FTB tax audit attorneys at the Tax Law Office of David W. Klasing represent entities and individuals in all types of state and federal tax audits, including but not limited to California employment tax audits, California sales tax audits, foreign account tax audits, FBAR audits, and worker classification audits. We can also provide representation should you disagree with the outcome of the audit, in which case you may generally dispute, appeal or “protest” an auditor’s conclusions by compiling comprehensive, fact-based evidence supporting your logic. If necessary, we stand ready willing and able to litigate your tax case but we find that the taxing authorities are more than willing to settle on fair and equitable terms once we convince them that the law and fact are on your side and we can prove it.

    Whether you have recently been notified that you were selected for an audit and need help navigating the next steps, or have already been audited and are now seeking California or IRS appeals representation, our aggressive IRS, FTB, CDTFA (BOE) and EDD negotiators (where necessary Tax Litigators) are ready to act on your behalf.

    Whether you need to defend yourself against allegations of willful tax fraud or negligent tax mistakes, or are simply looking to lighten your tax burden and preserve your wealth by using the current tax laws more efficiently, count on the Tax Law Office of David W. Klasing for personalized guidance, courteous service, and tireless advocacy. To schedule your reduced-rate initial tax consultation, use our online scheduling form or call (916) 290-6625 or (800) 681-1295 today.

    Our Sacramento Office:

    Please note that meetings and consultations at this address are by appointment only. All correspondence should be mailed to our headquarters in Irvine, CA. Our Sacramento office is conveniently located at:

    180 Promenade Cir Ste 300

    Sacramento, CA 95834

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    Client Testimonials

    Overall, it was a great experience with Mr. Klasing. The reservation process is simple and straightfoward. During our appointment, Mr. Klasing seemed to really care about our situation. Intelligence with grace and thoughtfulness come to mind. Don't hesitate to initiate an appointment with him.

    - Robert B.
    Yelp

    I've worked with David a number of times, most recently to get consultation on how to structure LLCs for my real estate portfolio. On all occasions David's knowledge and experience truly shows up and the advice he has given to me has benefited me in many areas of my financial life. I've also known David as a friend for over 20 years and have always found him to be an extremely hard-working man of integrity and strong ethics. I would recommend him to anyone.

    - Peter B.
    Yelp

    Mr. Klasing was incredibly responsive and helpful. I had several questions related to my tax fillings and was able to be scheduled in less than 24 hours. In less than 10 minutes he had answered every one of my questions, put my mind at ease, and we even had a few laughs. He then proceeded to refund me the majority of the fee. If I ever find myself in need of a CPA and/or tax attorney, I will not hesitate to contact him again.

    - Cathy B.
    Yelp

    "I had concerns over a potential tax matter and wanted to speak with an expert. Mr. Klasing was very knowledgeable and helpful, and cleared up my concerns during our consultation. He was very direct and matter of fact, which I appreciated. The consult was well worth it and I highly recommend him to anyone seeking expert guidance on their taxes."

    - AJ S.
    Yelp

    "These guys are amazing !!"

    - EvoProdigyX
    Google Reviews

    "Great service and timely, rang me at the exact appointment time. Gave clear answers and did not magnify or minimize information. Was knowledgeable and effectively communicated tax rules beyond my every day understanding. Well worth the consultation fee."

    - T.J.
    Yelp

    "David was was very helpful and efficient giving us guidance with our tricky tax situation in just one short phone call, which was very quick and easy to schedule. Being able to speak to someone with knowledge and experience in these matters without breaking the bank was wonderful. I highly recommend David Klasing."

    - Melissa L.
    Yelp

    “I recently had an online session with David and I was very happy with his services. He was kind, helpful, and genuine throughout the entire process. David’s knowledge and professionalism were evident, and he went above and beyond to provide me with additional advice beyond what was expected. Being a CPA and a lawyer also gave me confidence in his expertise. I highly recommend David to anyone in need of tax services!”

    - Maureen W.
    Google Reviews

    Mr. Klasing was very straightforward and easy to talk with on the phone. He seems like a very trustworthy individual and is willing to offer solitions and help you solve problems without any pressure to hire him as legal counsel. He does not intimidate or use scare tactics to get you to hire him. -Justin

    - Kendra S.
    Google Reviews

    Thank you, Dave Klasing and Team! We highly recommend this firm. Mr. Klasing was simply excellent along with Suzanne. Mr. Klasing met us late on a Monday night, and when we left we knew we had found a solid attorney and CPA. During the process and at conclusion, he was correct and handled everything for us. We not only recommend his services, but if the need presented itself we would not hesitate to use his firm again. -06/09/2023

    - K. C.
    Google Reviews

    I have a unique tax situation relating to a real estate sale involving a nonresident alien owner. I couldn't find any lawyer or CPA to even point me in the right direction on how best to do things legally and pay little tax as possible. Dave himself has never encountered such a case (he's honest), but he did the digging and found some very useful information for me. Dave was very professional and easy to communicate with. I am pleased with the advice and service I received. -05/07/2020

    - San C.
    Google Reviews

    I needed advice for how to best treat international income, and not only did David squarely and reassuringly address that area of inquiry, but he also guided me through pension consideration and real estate investment considerations that came to mind during the conversation. He was very generous with his time and I would absolutely recommend him for a consultation. No sales talk, just straight advice.

    - Jeffrey C.
    Google Reviews

    Took a chance at a 10 minute consult and was extremely impressed. Atty Klasing, is an honest attorney who gave me great legal advice. Highly recommend for any Tax law question. Mine was about classification of employees and he set me straight. Also, spoke to his assistant James who gave me further info at no extra charge. Nice to see such hard working good-ole boys doing such a great service for the community.

    - Harold B.
    Google Reviews
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    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    California
    Los Angeles
    (310) 492-5583
    Oxnard
    (760) 338-7035
    Sacramento
    (916) 290-6625
    San Francisco
    (415) 287-6568
    San Bernardino
    (909) 991-7557
    San Diego
    (619) 780-2538
    Bakersfield
    (661) 432-1480
    Panorama City
    (818) 935-6098
    Santa Barbara
    (805) 200-4053
    Oakland
    (510) 764-1020
    San Jose
    (408) 643-0573
    Carlsbad
    (760) 338-7035
    Arizona
    Phoenix
    (602) 975-0296
    New Mexico
    Albuquerque
    (505) 206-5308
    New York
    Manhattan
    (332) 224-8515
    Texas
    Austin
    (512) 828-6646
    Washington, DC
    Washington DC
    (202) 918-9329
    Nevada
    Las Vegas
    (702) 997-6465
    Florida
    Miami
    (786) 999-8406
    Utah
    Salt Lake City
    (385) 501-5934