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Bakersfield, CA Tax Attorney

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    The Tax Law Offices of David W. Klasing

    For any of your tax planning compliance and controversy needs in Bakersfield, contact the Lawyers at The Tax Law Offices of David W. Klasing today. Our experienced Tax Lawyers offer a reduced-rate consultation on new cases or engagements. Call (661) 432-1480 or 800-681-1295 or contact us online today to schedule a reduce rate initial consultation at our Bakersfield tax law offices, or at one of our other convenient locations across Southern California.

    Bakersfield Dual-licensed Tax Audit Attorney and CPA

    For those who live and work in Bakersfield, the various local, California state and federal tax regulations can be a bit overwhelming, necessitating the need for a tax attorney based in Bakersfield. As a taxpayer, you may primarily deal with federal and state tax regulations here, but you also may have some local taxes to pay.

    If you find yourself confused by the various tax situations you’re facing, the last thing you want to do is complete tax forms without fully understanding what you are doing. And don’t just assume California state and federal tax forms require the same information, as they may be significantly different, which causes further confusion for some Bakersfield taxpayers.

    If you make a mistake in these forms, you could be subject to an audit, which could lead to penalties, back taxes, and interest payments. In certain cases, you could end up facing criminal tax charges.

    When you need tax services in Bakersfield, contact the Tax Law Offices of David W. Klasing today to schedule a 10-minute call with an experienced tax attorney. Our dual-licensed Bakersfield, CA Tax Audit Attorneys & CPAs excel in addressing complex high risk tax dilemmas. Whether it’s assisting online vendors with California’s evolving sales tax regulations or steadfastly supporting businesses during high-risk IRS audits, our strategic interventions aim to curtail your tax liabilities and safeguard you from potential civil or criminal tax repercussions. From meticulously managing amended tax returns to handling intricate IRS home, office, correspondence, eggshell, or reverse eggshell tax audits, we always place your interests at the forefront, ensuring minimized risks and solutions tailored to your needs.

    Our founder and principal attorney, David W. Klasing, possesses decades of experience as a former auditor in public accounting and has represented clients in federal (IRS) and California (FTB, CDTFA (BOE), EDD) audits for nearly 30 years, enabling our tax team to navigate the audit process with precision and skill. Types of federal and California state tax audits in which we provide representation include (but are not limited to) the following:

    Industry-specific Audits:

    One of The Best Tax Attorneys in Bakersfield

    The Tax Cuts and Jobs Act (TCJA) of 2017 sought to bring clarity and simplicity to a notoriously elaborate Tax Code. However, even after extensive reforms, federal tax laws continue to cause confusion for millions of taxpayers – a confusion which is only compounded by additional layers of local, California state, and international tax regulations. Unfortunately, misunderstanding U.S. or California tax regulations can place a Bakersfield taxpayer, the taxpayer’s family, or the taxpayer’s business into financial or legal jeopardy. Agencies like the Franchise Tax Board (FTB) or Internal Revenue Service (IRS) may audit the taxpayer, assess penalties and interest, or even refer the taxpayer to other government agencies, such as the Department of Justice (DOJ), for criminal tax prosecution for willful tax evasion or other offenses.

    If you need help with a California state, federal, or international tax issue, the wisest course of action is to contact a Bakersfield tax lawyer or attorney-CPA for immediate assistance. For a reduced-rate initial consultation about professional tax services in Bakersfield, California, contact the Tax Law Office of David W. Klasing online, or call our tax firm at (800) 681-1295 today.

    International Tax Help in Bakersfield, CA

    Over the past decade, the IRS has set an agency-wide priority to crack down on offshore tax evasion, which is the practice of intentionally concealing global income, foreign bank accounts, or other foreign assets in other nations or territories. These nations and territories are often, though not always, well-known tax havens such as Luxembourg, Switzerland, Bermuda, the Cayman Islands, or Singapore.

    Regardless of whether the offshore location is considered to be a tax haven, the account holder generally has a requirement to disclose the foreign account(s) and foreign taxable income contained therein. With extensive experience working with California residents who have foreign accounts, citizens who are working or living abroad, and U.S. expats, our offshore lawyers in Bakersfield can help to ensure that you have met, in the safest possible manner, your obligations to report global income to the IRS. These obligations, which may be triggered if the foreign income exceeds $10,000 or $50,000 at any time during the tax year, may include the following:

    • Filing a Foreign Bank Account Report, commonly known as the “FBAR” (FinCEN Form 114)
    • Filing Form 8938 (Statement of Specified Foreign Financial Assets)
    • Filing Form 5471 (Information Return of U.S. Persons with Respect to Certain Foreign Corporations)

    The Offshore Voluntary Disclosure Program (OVDP) came to an end in 2018. The replacement program is now called the: Voluntary Disclosure Practice – VDP. it is urgent for noncompliant taxpayers to explore their disclosure options as soon as possible. Contact our international tax attorneys for prompt assistance.

    The failure to report global taxable income accompanied by omitting the related required foreign information reporting that would flag the unreported offshore income can lead to draconian civil or even criminal tax and foreign information reporting penalties, depending on whether such failure was seen as negligent or “willful” & whether accompanied by underreported taxable income or not.

    Our Bakersfield FinCEN Form 114 Attorneys & CPAs specialize in guiding taxpayers through the intricacies of FinCEN Form 114, a mandatory IRS form for reporting offshore bank & financial accounts. Our award-winning team, with a long track record in international tax representation, ensures compliance, safeguards your legal rights, and strategizes to minimize IRS civil and criminal tax and foreign information reporting penalties. Contact our Bakersfield office at (661) 432-1480 or (415) 287-6568or contact us here online for assistance on the following:

    If you’re engaged in international business or managing foreign assets, navigating the complex landscape of global taxation is crucial to success. At the Tax Law Offices of David W. Klasing in San Bakersfield, our team of dual-licensed Domestic and International Business Tax Attorney in Bakersfield, CA is poised to protect your interests. Whether you’re an American expatriate or have multiple offshore business entities and investments, we provide meticulous attention to ensure your international tax dealings are reported with precision and foresight.

    Addressing compliance oversights timely and correctly is essential, with the IRS currently escalating its efforts to uncover unreported global investment income & unreported offshore businesses and financial accounts. Now is the time to enlist experienced Domestic International Tax Compliance Attorneys and CPAs in Bakersfield, CA to review the international aspects of your U.S. tax filing history, ensuring compliance that minimizes additional tax penalties & interest and avoids criminal tax prosecution at all costs.

    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.

    Bakersfield Tax Attorneys for Businesses and Individuals

    Armed with nearly 30 years of combined experience providing thousands of taxpayers with sophisticated tax services ranging from bookkeeping and accounting to tax planning for foreign companies to Bitcoin tax issues to divorce tax issues, the award-winning team of dual-licensed Corporate Tax Attorneys & CPAs in Bakersfield, CA at the Tax Law Office of David W. Klasing is committed to delivering unparalleled client service with an emphasis on upholding your rights, protecting your wealth, and minimizing your losses. For a confidential, reduced-rate initial consultation with our knowledgeable team of tax professionals, call us at (661) 432-1480 or (800) 681-1295 or make an appointment online to visit our Bakersfield office. Click on the following to learn more:

    Bakersfield Business Tax Attorneys for Employment and Payroll Taxes

    As a business owner, you have responsibilities that do not concern most other taxpayers. First, you must ensure that your business is using the Tax Code in a way that supports the long-term financial growth of the company. Second, you must ensure that you are properly withholding, matching, and depositing payroll taxes, which are also referred to as “FICA taxes” or “trust fund taxes.” You must also take care to properly classify your workers as employees or independent contractors, ensure that any retirement plans or pensions you offer comply with ERISA (the Employee Retirement Income Security Act), determine how the company will change ownership when you are no longer at its helm, ensure compliance with California sales tax laws, and make other business and estate planning decisions that are impacted by state and/or federal tax regulations.

    Our dual-licensed Business Tax Attorneys & CPAs in Bakersfield, CA have assisted numerous employers, investors, entrepreneurs, and shareholders with the tax planning aspects of business entity selection, business succession planning, lawfully utilizing tax havens for companies, and related matters. We provide payroll and employment tax representation in California for corporations, limited liability companies (LLCs), partnerships, sole proprietorships, non-profit organizations, clerical or religious organizations, and more. Our practice areas include (but are not limited) to the following:

    IRS, FTB, CDTFA (BOE) and EDD Audit Defense in Bakersfield, CA

    A tax audit, also known as an “examination,” can be initiated by the IRS, FTB CDTFA (BOE) or EDD depending on whether the issue in question pertains to federal taxes, such as an IRS audit for federal income tax evasion, or state taxes, such as a California sales tax audit for evasion of sales tax. Tax audit procedures vary depending on factors like why the audit is being conducted, what type of audit is being conducted (e.g. field audits versus desk audits), and the nature and severity of the issue or error underlying the audit (e.g. a negligent or purposeful and substantial understatement of income).

    While these factors vary, one variable never changes: that the auditor’s goal is to uncover any crime or error, however minor, that may have occurred in your past. Depending on the issue, the statute of limitations may give the auditor three years, six years, or unlimited time to examine your records.

    An audit may result in assessment of additional tax penalties, or even a criminal tax investigation. It is therefore crucial to be represented by an FTB tax audit lawyer or IRS tax audit lawyer from the very beginning of the audit process, starting with the first notification you receive from the state or federal government. Other than general FTB and IRS tax audits, additional types of audits we handle include:

    IRS Audit Representation

    One of the first questions that your Bakersfield dual-licensed Tax Attorney and CPA will ask you when you reach out about your impending audit is about the type of audit the IRS, FTB, CDTFA (formerly BOE) & EDD are planning. Audits come in three different forms: correspondence audits, office audits, and field audits. Each of these forms of audit carry different timeline expectations and connotations of severity and thoroughness. You can tell which type of audit you are facing based on what the IRS says in the letter they send to notify you of the audit.

    Correspondence Audit

    Every audit is a tiresome, time-consuming affair. However, the least intrusive form of an audit available is ordinarily a correspondence audit. These are also sometimes referred to as mail audits. For a correspondence audit, you will receive a letter from the auditor asking for more information, such as records and documents. You will reply to the auditor’s requests through mail, phone, or electronically. A tax attorney can help you reconstruct your records and reply to these requests accurately to avoid any further civil or criminal tax penalties or repercussions. It is still very important to hire an attorney if you are not being treated fairly or if you have cheated on your tax return and you wish to avoid criminal tax prosecution.

    If there are no additional issues presented and the taxpayer cooperates thoroughly, the process of a correspondence audit can take between three to six months from start to finish. The IRS routinely ignores taxpayer correspondence and will eventually send you a 90-day letter. If you do not file a tax court petition within 90 days of receiving the 90-day letter, the assessment will become legally due and collectible even if based on faulty law or facts.

    Office Audit

    When dealing with an office audit, your notice letter will request that you bring records and documents into an IRS, FTB, CDTFA & EDD office for the auditor to review in person. The letter will also indicate the date and location of your office audit. You should always hire a dual licensed Tax Lawyer & CPA to accompany you to any meeting with the IRS, FTB, CDTFA & EDD so that you are not doing anything to further jeopardize yourself. A dual licensed Tax Attorney & CPA will endeavor to protect constitutional rights, your net worth, and your very liberty. Office audits are intended in part to be intimidating to their targets. Seventy percent of communication is nonverbal, and the auditor will be watching your body language very carefully. Having an attorney make an appearance on your behalf will save you an incredible amount of stress.

    Field Audit

    A field audit is by far the most serious type of audit. When a field audit is employed, IRS, FTB, CDTFA & EDD agents will often attempt to visit your place of business or your home to look through your books and documents themselves. They will also be attempting to explore your history of reported income versus their assessment of your standard of living and business success. These audits are usually reserved for cases where the taxpayer’s filings require assessment of complex revenue streams, serious civil assessments are suspected, or potentially criminal tax penalties for fraud are being considered. If the IRS does not receive the compliance that it is seeking from a correspondence or office audit, it may subsequently institute a field audit to further assess the issues with which it is concerned. It is vital that you contact an experienced tax attorney as soon as you find out a field audit is to occur.

    Frequently, a field audit is accompanied by substantial risk for the audited taxpayer. It is even more dangerous if the audit is also an eggshell or reverse eggshell audit. Our dual licensed Tax Attorneys & CPAs are most effective when we are involved as soon as possible. Even if an audit ends with no major issues, the likelihood of major risk is too great to chance not hiring legal counsel.

    For information about other aspects of the audit process, readers may be interested in our related audit articles, which explore topics such as:

    Bakersfield Criminal Tax Defense Lawyers

    A high-risk tax audit, known as an “eggshell audit” – has the potential to result in Federal and or California criminal tax charges. Formal charges may be filed by state or federal prosecutors using either an indictment or an information, depending on the circumstances. The taxpayer may be under IRS criminal investigation for weeks, months, or even longer before any charges are filed. The moment you become aware, or merely suspect, a criminal tax audit or investigation into yourself or your business is the moment you should contact a Bakersfield tax defense lawyer for guidance on which steps to take – and avoid taking – as the government develops its civil or criminal tax case against you.

    Keep in mind that most tax crimes are federal felonies, which tend to carry some of the harshest possible penalties in the U.S. judicial system. Tax fraud punishments can include criminal tax fines, IRS restitution, imprisonment, supervised release after the offender leaves prison, and, in cases involving CPAs, other taxpayer advocates, or anyone under California’s Business and Professions code, (Doctor’s Lawyers, Dentists, Architects, Actuaries, Engineers ect.) potential career-ending professional disciplinary actions. To provide an example, the tax evasion penalty can include a fine of up to $100,000 (or up to $500,000 for corporations), up to five years in prison, and payment for the cost of prosecution.

    A tax evasion attorney in Bakersfield may be able to, at worst, mitigate or, at best, outright avoid the civil and or criminal tax penalties you are facing. However, each moment you delay makes it harder to fight the charges successfully. Contact an IRS tax attorney right away if you suspect you are being audited or investigated in a scenario where you could potentially be charged with tax evasion (attempt to evade or defeat tax), payroll tax fraud (willful failure to collect or pay over tax), willful failure to file a return (owing “back taxes”), making false statements, interfering with the administration of Internal Revenue laws, or other tax crimes in California.

    Engaging the services of our Bakersfield Dual Licensed Criminal Defense Attorneys & CPAs 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. When facing 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). This is especially so when the taxpayer has a history of blatantly cheating on their federal tax returns and is now under audit and thus fears criminal tax prosecution.

    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 Bakersfield 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.

    Our dual-licensed Bakersfield Voluntary Disclosure Attorneys and Bakersfield Tax Compliance Attorneys & CPAs offer experienced guidance through the IRS Voluntary Disclosure Practice (VDP). 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 Bakersfield 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. We are dedicated to assisting in making sincere, comprehensive, and timely disclosures to the IRS and California state tax authorities, which includes arranging for the payment of owed taxes, interest, and penalties and cooperating with the tax agencies to determine the correct tax liability.

    We skillfully navigate the complexities of various federal and California state voluntary disclosures, including domestic, offshore, CDTFA, and FTB voluntary disclosures, streamlined procedures, and delinquent FBAR and international information return submission procedures. As long as a taxpayer in Bakersfield 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 tax noncompliance through a domestic or offshore voluntary disclosure with the help of our Bakersfield Foreign Account & Offshore Taxable Income Tax Compliance Attorneybefore the IRS 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:

    Bakersfield Eggshell Audits

    Eggshell audits present unique risks compared to more typical audit types. In an eggshell audit, the taxpayer knows information that could be construed as a material misrepresentation on their tax return. The auditor does not know this information. This situation is fragile for the taxpayer because one wrong step could mean admitting to a tax crime. A successful eggshell audit defense entails providing the IRS representative with responsive answers and documentation without providing excessive information that could incriminate the taxpayer, as well as potentially repairing any underpayments or misstatements on tax returns.

    International companies or taxpayers with offshore assets are at particular risk for these audits. In recent years, the IRS has focused more on taxpayers likely to have offshore accounts or assets that are not reported on tax returns. In such cases, the auditor may ask general questions regarding the tax returns but not specific questions that would uncover issues on the tax return.

    These audits are especially risky because the taxpayer must respond appropriately to the auditor and avoid an intentional omission or misrepresentation, which is a fine line to walk. Taxpayers will want to protect themselves from revealing information not specifically asked for. However, being too protective of this information could create elevated consequences. Since many eggshell audits are only civil investigations, the taxpayer might feel uncomfortable asserting their right to remain silent without tipping their hand and admitting they know something the IRS does not. If the IRS asks a direct question and the answer is incriminating, you are given an awkward choice between pleading the fifth, lying, withholding information, or telling the truth – all of which could potentially lead to criminal liability. Hiring our dual-licensed Tax Attorneys & CPAs will allow us to advise on appropriate responses to IRS requests.

    Generally, there are three potential outcomes of an eggshell audit. The first is the most beneficial scenario in which the auditor does not discover any issues and ends the audit. Risk-tolerant taxpayers may want to take their chances and proceed with an eggshell audit without counsel while hoping for this outcome. That approach is not advised. Responding to an audit while avoiding potential landmine issues is a delicate matter that would heavily benefit from experienced legal counsel.

    The second outcome is where the auditor discovered a misrepresentation or omission, but our attorneys have convinced the IRS that the matter can be resolved without a criminal tax investigation. This situation allows a dual licensed IRS Fraud Defense Attorney in Bakersfield, CA to shine. The IRS does not have the resources to refer every civil audit for criminal tax investigation. If the matter is adequately resolved with recommendations from a civil audit, further criminal liability is avoided. Our attorneys can work with IRS representatives to remedy deficiencies and convince them that criminal consequences are unnecessary.

    The third outcome of an eggshell audit is where the auditor refers the case to a criminal investigation. This is the most severe outcome and bears the most significant consequences. It is highly advised that our dual-licensed Tax Attorneys & CPAs are engaged in this instance to provide a criminal tax defense strategy.

    Bakersfield Reverse Eggshell Audits

    Reverse eggshell audits are usually the most dangerous types of IRS audits. In this instance, the IRS auditor knows or has reason to believe information that could indicate criminal liability, but the taxpayer is not aware that this information is known. This situation leads to a civil tax audit that contains covert criminal suspicions. The audits are extremely dangerous as taxpayers are ordinarily unaware that they are under a criminal tax investigation disguised as a civil tax audit. Unfortunately, that does not mean these audits are rare. It can be very hard to prove that a civil audit has criminal tax undertones, so a criminal tax defense attorney is absolutely critical to carefully navigate these circumstances.

    Intentional misrepresentations or omissions can be the kiss of death in a high-risk reverse eggshell audit. Auditors will ask direct questions to which they already know the answer. The auditor will infer intentional deception if a taxpayer explicitly lies or does not disclose an important fact.

    Using a lawyer to respond to the IRS can help ensure adequate responses are given. In this case, predicting what information the auditor knows is beneficial. Foreign accounts or assets may not be explicitly asked about, but if the auditor knows about these accounts or assets, failing to disclose them could cause problems. An attorney can inform the taxpayer of any international agreements that allow foreign governments to report such information to the U.S. or other sources of information that imply these foreign accounts or assets. Understanding what the auditor knows can help taxpayers respond to inquiries truthfully and fully. Click here to learn more about reverse eggshell audits in detail.

    Defending Against High-Risk Tax Audits

    A key strategy to address eggshell and reverse eggshell audits is to carefully and precisely respond to requests from the IRS. There is no criminal tax investigation at the audit stage yet, but one could be likely. This means that responses to the audit must adequately answer the question while not incriminating the taxpayer. Taxpayers should strike a balance between being truthful and providing too much information.

    For example, an auditor could ask, “What internal accounting controls does the company have in place?” An adequate response could be, “We have an internal auditing department that adheres to federal and state auditing requirements.” An excessive response would be to go on describing the particulars of the internal auditing process. If an IRS representative has additional questions, they will ask them. Developing responsive responses to responsive questions while not providing excess information is a skill that our dual-licensed Tax Attorneys & CPAs can assist with developing.

    A high-risk reverse eggshell audit, which is also a field audit, is a huge challenge to defend. Business field audits often involve interviews with employees covering a myriad of topics. Preparing these employees to respond appropriately to IRS questions is crucial to avoid excessive disclosure, and an attorney can assist with this process.

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

    Tax law in Bakersfield, encompasses a multifaceted system of courts and agencies. Federal tax disputes are usually settled in the United States Tax Court, which presides over conflicts between taxpayers and the IRS. Taxpayers also have the option to litigate tax disputes in the United States District Court or the United States Court of Federal Claims. In California, tax disputes are generally addressed by the California Office of Tax Appeals (OTA). This unbiased and autonomous appeals body handles tax disagreements involving the FTB, EDD, and CDTFA (formerly BOE).

    It rarely is the case that a taxpayer both agrees with a Federal or California state auditor’s conclusions and voluntarily consents to paying the resulting additional tax, penalties and interest. Taxpayers often disagree with an auditor’s findings, and can often find themselves financially unable to pay the additional tax, penalties and interest or other fines that have been assessed or proposed. Taxpayers that outright disagree with an auditor’s findings and wish to challenge or protest the outcome of the audit need experienced and practical representation to obtain optimal results.

    The Federal and California state audit appeals process is complicated, and rarely successful for the unrepresented taxpayer. It is also governed by unforgiving deadlines and procedural requirements. A tax audit attorney can help you avoid these pitfalls while giving you a better chance of successfully protesting the audit’s outcome, especially where the law and fact are squarely on your side. A Bakersfield tax lawyer can provide FTB, CDTFA (BOE), EDD or IRS appeals representation to dispute the auditor’s findings – potentially resulting in a significantly lower tax bill. An appeals attorney may be able to help the taxpayer avoid the early impositions of California State or Federal levy, tax lien, or tax garnishment where an audit goes uncontested until the end of the appeals or litigation process or by negotiating an installment agreement or offer in compromise (OIC) at the conclusion of the appeals / litigation process.

    At the Tax Law Offices of David W. Klasing, our dual-licensed Tax Litigation Attorneys in Bakersfield, CA and CPAs meticulously assess litigation risks where latent criminal tax issues may exist to secure resolutions as soon as possible, drawing upon our deep understanding of the procedural rules and substantive issues at play. 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.

    We 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 seasoned dual licensed Bakersfield, CA Audit Appeals and Tax Litigation Attorneys is invaluable. As an experienced litigator, David W. Klasing Esq. M.S.-Tax CPA can represent you in the Federal or California Tax Court. Our services include representing clients in the following scenarios:

    California Franchise Tax Board (FTB) Audit Representation

    In addition to federal income tax filing requirements, every citizen of California that is required to file a federal return must ordinarily file state entity and personal income tax return as well. The California Franchise Tax Board (FTB) also conducts independent audits related to your state income tax filings. Sometimes, you may owe money to the state even though you did not owe money to the IRS due to the differences between state and federal tax laws. Differences between federal and California tax laws can often spark FTB audits.

    The FTB also conducts independent audits if they believe potential fraud occurred on your returns. A tax audit by the FTB should be treated just as seriously as one by the IRS as California prosecutes tax crimes regularly. A tax attorney can help you prepare and reconstruct the necessary documents and can prevent your case from going criminal and appeal / fight any tax penalties or interest that you believe to be unfair or incorrect and can help negotiate a reasonable payment plan for any money you ultimately do owe.

    An experienced tax attorney can work to resolve any issues associated with such an audit before they become problematic. They can also help negotiate an installment plan if you are in fact found to owe money to the FTB. Click on the following to learn more:

    Because the FTB is a tax agency, one might assume it is therefore authorized only to collect tax-related debts, such as debts incurred through failure to file taxes, failure to pay taxes, or failure to retain records in previous years. In reality, the FTB may collect a wide range of debts, including but not limited to debts arising from:

    • Colleges and universities to which the taxpayer owes fees, tuition, or other unpaid obligations.
    • Superior Court fines and fees.
    • Unpaid payments owed to any state agency.
    • Any of the following owed to a city or county in California:
      • Bail
      • Court-ordered payments
      • Parking tickets/citations
      • Property taxes
      • Unpaid fines

    As you can see from this non-exhaustive list, a wide range of debts can trigger the seizure of one’s state income tax refund – including debts which are not directly related to tax obligations. For more information on the subject of FTB debt collections, please review the following:

    California Employment Development Department (EDD) Audit Representation

    The California Employment Development Department (EDD) conducts audits related to payroll taxes that businesses are required to pay. Employers are required to take a certain amount in payroll taxes out of each employee’s paycheck and remit them to the proper California state and federal agencies. If you fail to collect such taxes or fail to properly remit them, you could face back taxes as well as potential fines and penalties.

    The most common issue in EDD audits relates to the classification of workers as employees vs. independent contractors especially considering California’s recent new legislation in AB5. Employers are required to collect and remit payroll taxes from employees but not from independent contractors who work for them. There are many complex rules governing who can and cannot be an independent contractor in California. A tax attorney can help you properly classify your employees and to prove to the EDD that any misclassifications you made were unintentional. Our experienced Bakersfield 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:

    California Department of Tax and Fee Administration (CDTFA) Audit Representation

    The California Department of Tax and Fee Administration (CDTFA) conducts audits related to the improper collection or remittance of California sales taxes. The rules regarding how much a business must charge in sales tax vary depending on the locality and the type of product you are selling. CDTFA often conducts random audits of businesses where sales tax issues are common, such as the restaurant and bar industry. Its not a matter of if you will be audited, it’s a matter of when. The CDTFA is famous for placing a hold on any escrow proceeds and holding them hostage while they very slowly complete a sales tax audit on any business sold in California.

    These types of audits are very invasive, as the auditor will want to look at your entire history of sales to make sure you are not failing to collect sales taxes when you should be and can be your worst nightmare if you’re in the habit of pocketing cash sales. They will also look at scenarios where you are collecting sales taxes but not properly remitting them to the state. Serious penalties and even criminal tax charges can apply if the CDTFA determines you have been deliberately underpaying sales taxes. The CDTFA will also compare the sales your report for sales tax purposes to the sales your report for income tax purposes and will resort to a markup audit if they do not believe your records reflect cash sales. A tax lawyer will be able to help you prepare a defense and file any necessary documents, such as a petition challenging an incorrect finding, in a timely manner so that you do not lose your right to appeal.

    Recently, the CDTFA issued updated guidance on protocols and procedures for disputing, or “appealing,” CDTFA determinations. Though the CDTFA makes efforts 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. We can help you appeal IRS and California state tax audit decisions involving:

    Struggling with Cryptocurrency Taxation in Bakersfield?

    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.

    Our Bakersfield Bitcoin and Virtual Currency Tax Attorneys & CPAs 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 intentionally committed tax evasion 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 (661) 432-1480 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 Bakersfield Sales Tax Attorneys and CPAs

    Businesses in Bakersfield 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 Bakersfield business is selected for a sales tax audit, it’s crucial to stay calm and immediately seek the assistance of our dual-licensed Bakersfield, California, Sales Tax 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 Bakersfield Internet Sales Tax Attorney & 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 Bakersfield 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 Bakersfield

    Our dual-licensed Bakersfield Estate & Income Tax Planning Attorneys and CPAs offer comprehensive tax & estate planning services. We are dedicated to ensuring that your final wishes are respected and that you provide effectively for your loved ones after your passing. By combining our expertise in financial planning, legal counsel, taxation, and accounting, we aim to help you secure and preserve your wealth for future generations. Estate planning is a crucial process that requires the compassionate and effective guidance of knowledgeable tax professionals. Our services encompass the creation of tax-efficient estate plans that align with your personal goals, assistance in preparing and filing estate tax returns and providing expert advice on the implications of gift taxes.

    Estate planning involves various elements, each of which must be tailored to your unique financial situation. This includes considering the size of your estate, the number of beneficiaries, and the complexity and locations of your assets, both domestically and internationally. This is especially pertinent if your holdings include offshore business & bank, financial, and investment accounts. Our experienced California Estate Planning attorneys, supported by a team of CPAs and CPA candidates, have decades of experience in guiding clients through the nuances of wills, trusts, advanced healthcare directives, and other estate planning and administration matters. We provide assistance in:

    How Do I Choose a dual licensed Tax Attorney & CPA in Bakersfield?

    Tax issues often come in multiples. When a client initially seeks out a Tax Lawyer to help them with one issue, they commonly may find that the single tax issue affects them in a variety of ways. They may also discover underlying issues of which they weren’t previously aware. When this happens, you will want to address all of the issues as soon as possible. However, not every Law or CPA firm can provide all the services that you need.

    Tax Lawyers may specialize in one area, like tax preparation & planning or criminal tax defense. If you have concerns that your tax law firm does not cover, you may be forced to seek out an additional source of representation. This can cause higher fees, delays in the representation process, ego battles, territorialism and costly miscommunications between representation sources that can cause you even more harm.

    Another mistake that many taxpayers make when seeking representation is not confining their search to services in their area. While the attorney’s location might not restrict them from providing you advice, it may mean that the attorney is not familiar with the specific state tax regulations that affect you individually. It may also be difficult for a Tax Attorney who is farther away to attend proceedings like office audits and hearings in person by your side. Fortunately for you, David Klasing is an instrument rated private pilot and owns a very fast yet economical airplane. He can be in Bakersfield in a little over an hour once airborne and does not charge for travel time.

    For all the above reasons, Bakersfield taxpayers would be best served by reaching out to the Tax Law Offices of David W. Klasing for all their tax matters. Our dual-licensed Bakersfield, CA Tax Audit Lawyers have experience in a wide range of multidisciplinary tax matters, meaning that you won’t have to look further than us for every facet of your tax needs. We also provide tax services to our clients throughout the State of California, including Bakersfield, and can provide you with California specific tax advice and representation.

    Tax Attorney Practice Areas

    Bakersfield Tax Attorney
    Bakersfield, CA Tax Audit Lawyer
    Bakersfield, CA Audit Appeals and Litigation Attorney
    Domestic and International Business and Tax Attorney in Bakersfield, CA
    Domestic International Tax Compliance Attorney and CPA in Bakersfield, CA
    Tax Evasion Defense Attorney in Bakersfield, CA
    IRS Fraud Defense Attorney in Bakersfield, CA
    Business Tax Attorney & CPA in Bakersfield, CA
    Corporate Tax Attorney & CPA in Bakersfield, CA
    Tax Litigation Attorney in Bakersfield, CA
    Internet Sales Tax Attorney in Bakersfield, CA
    Bakersfield Bitcoin and Virtual Currency Tax Attorney

    Bakersfield Tax Attorneys for Businesses and Individuals

    Armed with more than 20 years of combined experience providing thousands of taxpayers with sophisticated tax services ranging from bookkeeping and accounting to tax planning for foreign companies to Bitcoin tax issues to divorce tax issues, the award-winning team of Tax Attorneys and CPAs at the Tax Law Office of David W. Klasing is committed to delivering unparalleled client service with an emphasis on upholding your rights, protecting your wealth, and minimizing your losses. For a confidential, reduced-rate initial consultation with our knowledgeable team of tax professionals, call us at (661) 432-1480 or (800) 681-1295 or make an appointment online.

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

    Confidentiality

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

    Managing Liability

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

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

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

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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

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    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

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