Bakersfield, CA Audit Appeals and Litigation Attorney

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Resolving disputes with taxing authorities doesn’t always require a courtroom battle. In many situations, the taxpayer and the agency can reach a satisfactory agreement outside of court without litigation. Nevertheless, there are instances when finding a resolution is more complicated, and federal of California tax litigation becomes essential. In such cases, it’s crucial to have a representative with a unique combination of tax and accounting expertise combined with experienced litigation skills on your side.

In Bakersfield, California, taxpayers can access various tax courts and agencies for handling federal and California state tax disputes. We can vigorously advocate for your interests for conflicts with the Internal Revenue Service (IRS), such as audits, deficiency notices, or seeking refunds for overpaid taxes. If the dispute proceeds to court, we will viciously litigate for you before the United States Tax Court, the primary federal court specializing in resolving tax controversies between taxpayers and the IRS.

At the California state level, we represent clients before the California Department of Tax and Fee Administration (CDTFA), which handles taxes and fees supporting state programs like transportation, public health, schools, libraries, social services, and natural resources management. We also frequently represent businesses and individuals before the California Franchise Tax Board (FTB), the state agency responsible for collecting California’s personal and corporate income tax. If the case moves to litigation, the California Superior Court in Kern County and the California Office of Tax Appeals (OTA) hear state tax disputes in the Bakersfield area.

In addition, we assist clients with issues before the California Employment Development Department (EDD), which administers unemployment and disability insurance programs, collects and audits payroll taxes, and maintains employment records for the state. Our in-depth understanding of how these tax authorities and courts operate enables us to represent your interests in Bakersfield, California, effectively.

No business or individual is eager to be chosen for tax auditing – or to pay the resulting interest, penalties, or tax assessments. Fortunately, California state and federal tax procedures provide platforms for taxpayers to challenge audit outcomes that are incorrect, inappropriate, or overstep the bounds of the law. If you, your spouse, or your business wishes to dispute the results of a tax audit in Bakersfield, CA, the Tax Law Office of David W. Klasing can help. Whether you aim to negotiate a favorable compromise or challenge the tax authority head-on, we can build an effective strategy to fight for your goals while mitigating your losses.

With over 20 years of tax law experience – including more than a decade as a former public auditor – Mr. Klasing and his skilled team of tax attorneys are well-equipped to represent you before an appeals officer or, should the appeals process fail to resolve your tax controversy, to settle the matter through aggressive tax litigation in court. David W. Klasing Esq. CPA M.S.-Tax holds dual California licenses, enabling him to practice simultaneously as an Attorney and a Certified Public Accountant in Taxation, Estate Planning, and Business Law. With an “A” rating from the Better Business Bureau and a 10.0 AVVO rating, Mr. Klasing offers businesses and individuals comprehensive Tax Representation, Planning & Compliance Services, and Criminal Tax Representation. We are licensed to practice before all California State Courts, the United States District Court for the Central District of California, and the United States Tax Court, offering comprehensive representation for clients facing tax disputes in Bakersfield, CA.

Bakersfield, CA Audit Appeals and Litigation Lawyers for Businesses and Individuals

At the Tax Law Office of David W. Klasing, our tax attorneys draw upon diverse professional backgrounds in business accounting, estate planning, and tax law. This wide-ranging expertise allows our award-winning tax team to provide robust, experience-driven representation in various civil and criminal tax cases related to audits, appeals, and litigation.

We have successfully represented numerous individuals, C corporations, S corporations, limited liability companies (LLCs), various types of partnerships, and sole proprietorships. Our Bakersfield audit appeals and litigation attorneys represent taxpayers and business entities who need assistance appealing the outcomes of the following:

CDTFA audits (California Department of Tax and Fee Administration);
EDD audits (Employment Development Department);
Employment tax audits;
Estate and gift tax audits;
Excise tax audits;
FICA/Payroll tax audits;
Foreign bank account and FBAR audits;
Foreign Account Tax Compliance Act (FATCA) and international tax issues;
FTB audits (Franchise Tax Board);
Income tax audits;
IRS audits (Internal Revenue Service);
Correspondence audits;
Eggshell audits;
Field audits;
Office audits;
Reverse eggshell audits;
Sales and use tax audits;
State tax audits;
Worker classification audits;
Industry-specific Audits:

- Car Dealership Audits;
- Dentist Audits;
- Veterinarian Audits;
- Attorney / Legal Industry Audits;
- Doctor’s / Medical Industry Audits;
- Real Estate Professional Audits;
- Audits of Cash Intensive Businesses (Liquor Stores, Bars, Restaurants, Laundromats);

California Income Tax Audits;
Civil and Criminal tax investigations and litigation;
Partnership taxation;
Collection due process disputes;
Penalty and interest issues.

We also represent taxpayers in tax court, where tax litigation may be necessary to resolve issues not successfully addressed on appeal—our team, led by Mr. David W. Klasing Esq. CPA M.S.-Tax is consistently ranked as one of the top tax law firms in the nation. With numerous awards, rankings, media mentions, and leadership positions in organizations like the OCBA Tax Committee, California Bar Tax Procedure and Litigation Committee, and the American Society of Attorney CPAs, our tax controversy and litigation attorneys are recognized leaders and authorities in the field.

With a long history of wins for clients and a commitment to ethical and honest representation, we can help businesses and taxpayers navigate complex tax litigation processes, including filing tax deficiency actions, tax refund actions, and other types of lawsuits against California state or federal tax authorities. We are dedicated to protecting your interests, ensuring you receive the proper guidance, and aggressively pursuing a favorable resolution in cases involving the IRS, FTB, CDTFA, EDD, and other tax agencies. Our Bakersfield dual-licensed litigation Attorneys and CPAs are well-equipped to help you achieve the best possible outcome in your tax dispute.

What if I Disagree with the Results of an IRS, FTB, CDTFA, or EDD Tax Audit?

The bad news is that an FTB, EDD, CDTFA, or IRS tax audit will likely result in an unwanted outcome for the taxpayer – typically interest, tax assessments, and civil penalties. The good news is that taxpayers have the right to dispute such results, though strict criteria must be met for the taxpayer to prevail. Due to the stringent requirements and complex tax laws surrounding an appeal, it is always in a taxpayer’s best interests to consult with a tax attorney before proceeding.

Suppose the issue to be appealed involves a federal tax issue. In that case, the taxpayer should contact the IRS Office of Appeals by filing what’s known as a “written protest,” “protest letter,” or a Tax Court Petition, depending on your case’s facts and circumstances. The protest letter or Tax Court Petition serves two primary purposes:

Summarizing the issues at hand – Law and or Facts in dispute;
Notifying the IRS of your wish to appeal/litigate the audit’s outcome;

It’s important to understand that your protest/litigation will not be successful unless facts, legal statutes, or case law thoroughly support your objection. In other words, the IRS will reject complaints based on constitutional arguments, religious beliefs, or personal beliefs. Additionally, your protest letter must meet strict deadlines: it may be filed no later than 30 days after the date indicated on the notice informing you of the right to appeal or within 90 days of the notice of deficiency.

If the issue to be appealed involves a California tax issue, the taxpayer should contact not the IRS but the Office of Tax Appeals (OTA), a California state agency. The OTA, which assumed many former duties of the Board of Equalization (BOE) following the Taxpayer Transparency and Fairness Act of 2017, handles appeals related to FTB and CDTFA decisions – for instance, a state income tax assessment proposed by the FTB. Like IRS appeals procedures, OTA procedures require taxpayers to submit factual explanations supporting their positions, copies of pertinent FTB/CDTFA notices, and relevant financial documents (such as bank statements).

Working with an experienced tax attorney is crucial in navigating the complex procedures and requirements for appealing tax audit outcomes. General litigation firms may provide high-quality representation but lack knowledge of detailed tax law and practice. At the tax law offices of David W Klasing, our dual-licensed Bakersfield Attorneys and CPAs exclusively focus on tax litigation and controversies. Whether you face an offshore asset matter, a voluntary disclosure, an IRS audit, or a dispute with a California state or local taxing authority, we are familiar and experienced with providing the highest caliber tax litigation defense. We handle various tax matters involving financial products, partnership issues, tax accounting, tax credit qualifications, gift and estate taxes, excise taxes, employment taxes, worker classification matters, tax treaty and withholding tax issues, and state and local taxes. Our expertise can significantly increase your chances of success, potentially resulting in reduced tax assessments, penalties, or interest. Act promptly and seek professional assistance to meet the strict deadlines and criteria required for a successful tax appeal.

Resolving Your Tax Dispute in Court

The IRS Office of Appeals manages to resolve approximately 100,000 tax disputes yearly. However, appealing your tax audit’s results does not guarantee to resolve the controversy successfully. If the taxpayer does not respond to the 30-day letter or no agreement is reached with the IRS Appeals Office, the taxpayer generally will receive a notice of deficiency, which provides 90 days to file a petition with the U.S. Tax Court.

In some cases – particularly those involving suspected tax fraud, corporate tax issues, or substantial delinquencies – the taxpayer must change their legal strategy, shifting from dispute resolution to aggressive litigation in California state or federal tax court. When taxpayers attempt to resolve their disputes through lawsuits against tax authorities, it is known as “tax litigation.” To initiate a case, the taxpayer must petition the appropriate tax court within the 90-day deadline specified in the Notice of Deficiency, also known as the “90-day letter.” This crucial period allows the taxpayer to gather evidence, consult with legal counsel, and prepare a comprehensive case for court proceedings. If the taxpayer fails to reply to the 90-day letter, the amount indicated on the deficiency notice will be evaluated, irrespective of whether the proposed alterations were incorrect.

For taxpayers located overseas when they received the notice, the deadline is extended from 90 to 150 days, providing additional time for international taxpayers to navigate the complexities of cross-border tax disputes. We can ensure that you file the appropriate legal documents in a timely fashion with the correct court and will work tirelessly to build a comprehensive case supported by thorough evidence, taking into account the specific deadlines relevant to your situation

In cases where you disagree with the IRS audit findings, you can dispute the deficiency through an expedited appeals process or by filing a lawsuit in Tax Court. The expedited appeals process involves the auditor, their manager, and an appeals officer. Still, it may not always be the most effective resolution method due to the emotional investment of the auditor and their manager in the audit results, which can lead to unbalanced negotiations. Alternatively, the normal appeals process is initiated by filing a tax court petition, allowing for an independent review of the taxpayer’s case by an appeals officer not involved in the initial audit. This officer will evaluate the taxpayer’s arguments and evidence, considering the litigation hazards for the IRS.

If the appeals process does not resolve the issue, the taxpayer can engage in a second attempt at settlement with the IRS Chief Counsel’s office on the Tax Court steps without incurring the actual costs of in court tax litigation. When filing a lawsuit in Tax Court, the taxpayer must prepare a detailed complaint outlining their legal arguments and supporting evidence as to why the taxpayer should prevail on the law and the facts at issue. The case will progress to appeals, then to the Chief Counsel’s office, and ultimately to trial if necessary. During the trial, the taxpayer and their attorney present the arguments and evidence to the judge, who will issue a decision that can be appealed to a higher court if needed.

Bakersfield Tax Law Offices

As a team of dual-licensed Bakersfield tax litigation Attorneys and CPAs led by David Klasing, we specialize in handling tax litigation cases, offering exceptional services tailored to your specific tax dispute needs. With extensive experience in audit representation, criminal tax representation, foreign account and information reporting, non-filer assistance, tax appeals representation, and much more, we’re well-prepared to guide you through even the most complex tax litigation scenarios.

Our comprehensive understanding of tax and criminal law and expertise in navigating the intricacies of tax litigation distinguishes us from other tax professionals. Our tax litigation lawyers excel at representing clients in Bakersfield, CA, and beyond throughout all phases of the tax dispute process, including audits, litigation in the U.S. Tax Court, trial courts, and appellate courts. Our expertise extends beyond federal income tax matters, encompassing representation before the California Franchise Tax Board, State Board of Equalization, CDTFA, and Employment Development Department. We carefully strategize to manage audits and achieve successful outcomes, aiming for settlements when possible. However, we are always prepared to vigorously defend your rights in administrative hearings or trials to secure the best possible resolution.

By choosing to work with us, you can trust that we will develop customized strategies to effectively resolve your tax litigation matters, protect your rights, and minimize your losses. Our unwavering commitment to our clients, combined with our unique dual licensing in tax law and accounting, ensures you receive the highest representation and guidance throughout the entire tax litigation process. To seek assistance in settling an unresolved tax controversy, reviewing compliance with California state or federal tax laws, or engaging in effective tax planning for your business or personal finances, contact the experienced tax lawyers at the Tax Law Office of David W. Klasing. Proudly serving taxpayers throughout the Bakersfield, CA region, we offer reduced-rate consultations for new cases and engagements.

There are three ways to contact one of our experienced tax attorneys: call (661) 432-1480 or (800) 681-1295 or contact us online using our simple and confidential submission form. After establishing a relationship, we can schedule you for an appointment at our office in Bakersfield’s West Park Community district or meet with you at any of our conveniently located tax offices in Southern California. We do not charge for travel time. Our Bakersfield office is conveniently located at:

Bakersfield, CA Audit Appeals and Litigation Attorney

Bakersfield, CA Audit Appeals and Litigation Lawyers for Businesses and Individuals

What if I Disagree with the Results of an IRS, FTB, CDTFA, or EDD Tax Audit?

Resolving Your Tax Dispute in Court

Bakersfield Tax Law Offices

More Commonly Asked Tax Audit Questions

California Sales Tax Questions and Answers

Questions and Answers for Criminal Tax Representation

Questions About Delinquent Payroll Taxes and Trust Fund Recovery Penalty

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