In the innovative and dynamic environment of Sacramento, navigating the intricate web of California state tax laws demands exceptional expertise. In Sacramento, where technological advancement thrives, and the Franchise Tax Board (FTB), California Department of Tax and Fee Administration (CDTFA), and Employment Development Department (EDD) maintain vigilant oversight, having an experienced strategic ally is crucial. Sacramento’s unique economic landscape presents distinct state tax challenges, requiring an experienced attorney deeply attuned to the region’s pulse and the complexities of California’s tax system. Whether you’re dealing with the repercussions of unfiled state taxes, preparing for an impending state tax audit, or deciphering complicated California tax regulations, the necessity of a proficient ally in this hub of innovation cannot be overstated.
If you are a resident of California, not only are you required to file a federal income tax return, but you must also file a California state income tax return. While the IRS processes federal tax returns, your state tax return should be filed with the California Franchise Tax Board (FTB), the state agency responsible for administering California income tax regulations and conducting California income tax return audits. A California state tax audit is as severe as an IRS audit and can potentially lead to a federal tax audit. California government agencies like the FTB frequently share taxpayer data with the IRS.
If you or your business has been selected for a California tax audit by the FTB, CDTFA, EDD, or another state agency, you face the risk of costly tax assessments, interest charges, and civil penalties – or even referral for criminal tax prosecution. Hence, it would be wise to consult with an experienced dual-licensed Tax Lawyer & CPA in San Diego to protect your rights and interests as soon as possible.
Choose Us at the Tax Law Offices of David W. Klasing as Your California State Tax Lawyers in Sacramento
At the Tax Law Offices of David W. Klasing, we have nearly three decades of tax audit experience, including more than a decade of auditing experience. Our dual-licensed California State Tax attorneys and CPAs pride themselves on providing responsive, insightful audit representation for businesses and individuals, including expats, non-citizens, and online companies.
Our objective is to protect your rights and support your best interests at all stages of the California audit process, negotiating with auditors to achieve a cost-efficient resolution while bringing you into compliance with federal and California state tax law. We will be of invaluable assistance to you with the appeals process to challenge an unfair or inaccurate tax assessment should you disagree with the initial results of your audit. For help with the Sacramento tax services you need, contact the Tax Law Offices of David W. Klasing today to schedule a 10-minute call with an experienced attorney. We can handle any tax situation you may encounter at the California state, federal, and international levels.
With an impeccable “A+” rating from the Better Business Bureau and a pristine 10.0 score from AVVO, David W. Klasing’s commitment to premier California state tax audit representation remains steadfast and unyielding. To offer a clearer perspective on our exceptionalism, consider this: In the vast expanse of over a million attorneys and upwards of half a million CPAs in the U.S., only approximately 24,000 professionals can boast of being dually-licensed Attorney CPAs. Further narrowing down this elite group, a scant 3,000 have the rare distinction of having earned a Master’s in Taxation. David W. Klasing, an integral part of this select league, harnesses his unparalleled education and decades of hands-on experience to champion our clients’ Sacramento tax defense challenges. Call 408-643-0573 or 888-564-1409 or contact us online today to schedule a reduced rate initial consultation at our Sacramento tax law offices or one of our other convenient locations across Northern California.
California Franchise Tax Board (FTB) Audit Representation
What is an FTB Audit?
The California Franchise Tax Board (FTB) conducts audits related to California’s personal and business income tax filings. These audits can follow on the heels of an IRS audit and also can:
- Be conducted entirely independent of any IRS enforcement action;
- Often involve California-specific differences from federal tax law that may have been ignored or misapplied.
How Can You Fight an FTB Audit?
Often, the best way to fight a guaranteed bill from the FTB following an IRS audit is by prevailing in the IRS audit initially. At the Tax Law Offices of David W. Klasing, we will help you:
- Reopen a federal audit through a process called audit reconsideration;
- Appeal or litigate both federal and California state tax audits.
What if the FTB Conducts Its Own Audit?
Sometimes, the FTB conducts its own audits related to issues specific to California law. We will help you understand the differences between federal and California tax laws and the various methods of supporting your California tax position. Our dual-licensed Tax Attorneys and CPAs will also help you appeal or litigate any California assessments of additional tax penalties and interest you believe are unfair.
What if You Owe Back Taxes to the FTB?
Due to differences between federal and California state laws, you may owe back taxes to the FTB even if an IRS audit finds you did not owe anything to the federal government. If you do indeed owe back taxes, we will help you:
- Negotiate with the FTB to work out a reasonable payment plan or other collection alternatives;
- Help you minimize or avoid penalties and interest.
Why Should You Never Ignore an FTB Notice?
It is never prudent to ignore an FTB notice, even if you disagree with its findings or are unsure precisely what the notice references. Ignoring notices can lead to:
- Accruing interest on any unpaid tax debts until your debt is satisfied;
- Escalating issues, making them more complicated and costly to resolve later.
CDTFA, EDD, and FTB Tax Audit Attorneys in Sacramento
EDD audits can be triggered by an employer’s noncompliance with California employment tax and payroll tax regulations. A typical example is the illegal misclassification of employees as independent contractors. Whether your California or federal employment tax matter involves fringe benefits, unemployment taxes, worker classification audits, EDD audits, payroll accounting methods, the additional medicare tax, trust fund recovery penalties, accuracy-related penalties, seasonal workers, tax evasion charges, or related issues, our dual-licensed Sacramento EDD Tax Audit Attorneys & CPAs possess the knowledge and experience to help you find a resolution.
CDTFA tax audits frequently involve sales and use tax issues, particularly concerning internet sales tax compliance – a recent consequence of the Supreme Court’s 2018 ruling in South Dakota v. Wayfair, Inc. You should immediately consult our dual-licensed Sacramento Online Business Tax Audit Attorneys & CPAs if your business has been chosen for a California sales tax audit. Recently, the CDTFA issued updated guidance on protocols and procedures for disputing, or “appealing,” CDTFA determinations. Though the CDTFA tries to provide clear instructions for taxpayers, it is not recommended to attempt handling an appeal without professional tax representation. It is in your best interests to consult our experienced dual-licensed CDTFA Audit Attorneys & CPAs before filing an appeal or petition for redetermination due to the legal and financial complexity involved.
If you or your business was chosen for an FTB tax audit, CDTFA tax audit, or EDD tax audit, you must take swift action to protect your rights and thoroughly prepare for the examination. To arrange a confidential, reduced-rate initial consultation concerning a state tax audit in California, contact us at the Tax Law Office of David W. Klasing online here or by calling our Sacramento at (916) 290-6625 / (888) 564-1409. Please note that our Sacramento office is by appointment only.
Our Sacramento Office is Conveniently Located at:
180 Promenade Cir Suite 300
Sacramento, CA 95834
(916) 290-6625