Awards & Recognition
With a population of over 115,000, Carlsbad is a thriving coastal city in Southern California known for its vibrant biotech industry, beautiful beaches, and affluent communities. Carlsbad’s economic landscape is bolstered by its proximity to major hubs like San Diego and its appeal as a prime tourist destination, attracting visitors to its luxury resorts, golf courses, and the famous LEGOLAND California Resort. However, despite its economic strengths, even Carlsbad’s most successful businesses and residents can face significant financial pressures due to California state and federal tax regulations and the potential pitfalls of civil and criminal tax law enforcement.
In Carlsbad, where biotech, tourism, and entrepreneurial ventures fuel economic growth, the Franchise Tax Board (FTB) and other California tax agencies, including the California Department of Tax and Fee Administration (CDTFA) and the Employment Development Department (EDD), maintain vigilant oversight. Carlsbad’s diverse economic landscape presents unique state tax challenges, making it essential to have an experienced strategic ally who understands the region’s dynamics and the intricacies of California’s tax system. Whether dealing with the consequences of unfiled state taxes, preparing for an upcoming state tax audit, or navigating the complexities of California tax regulations, having a knowledgeable partner in this vibrant economic region is crucial.
At the Tax Law Offices of David W. Klasing, 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 three decades, enabling our tax team to navigate the audit process with precision and skill. Our dual-licensed Carlsbad, CA, Tax Attorneys and CPAs provide indispensable representation and guidance for taxpayers involved in disputes with federal and California tax authorities. With a comprehensive understanding of tax law, regulations, court procedures, and accounting practices, our team ensures that you receive strategic and effective representation tailored to your unique circumstances and navigate the complexities of state tax disputes with confidence and precision. Whether assisting online vendors with California’s evolving sales tax regulations or steadfastly supporting businesses during high-risk California state tax audits, our strategic interventions aim to curtail your tax liabilities and safeguard you from potential civil or criminal tax repercussions.
Call (760) 338-7035 or 888-564-1409 or contact us online today to schedule a reduced rate initial consultation at our Carlsbad tax law offices or one of our other convenient locations across Southern California.
Carlsbad, CA State Tax Attorney Services
California Franchise Tax Board (FTB) Audit Representation
The California Franchise Tax Board (FTB) conducts audits related to state income tax filings in Carlsbad, where the business environment is diverse and dynamic. These audits can be initiated independently or based on the results of a federal audit. Even if the IRS finds that you do not owe any back taxes, differences between California state and federal tax laws may lead the FTB to conclude otherwise.
With its mix of biotech firms, tourism, and entrepreneurial ventures, Carlsbad’s unique economic landscape presents state-specific challenges that can trigger an FTB audit. These audits can result in severe fines and penalties, making it essential to treat them with the same seriousness as an IRS audit. A skilled FTB Audit Tax Attorney can assist in reconstructing necessary records, disputing any incorrect findings, and negotiating a payment plan with the FTB if you owe back taxes.
If you disagree with the results of an FTB audit, you have the right to challenge or “protest” the outcome. It’s crucial not to face an audit alone, especially if you suspect inaccuracies in your tax filings. Our experienced dual-licensed Carlsbad FTB Audit Appeals Attorneys and CPAs can provide the protection and expertise to stop the examining agent from inferring criminal admissions/confessions from your actions and words.
Ignoring an FTB notice is never advisable, even if you disagree with its findings or are unsure of the details. Interest on unpaid tax debts continues to accrue, so addressing the issue promptly is essential. Explore further resources, such as:
- Procedures for Appealing an FTB Audit
- FTB’s Manual on Audits, Protests, and Appeals
- FTB Debt Collections with Disability Benefits
- California Franchise Tax Voluntary Disclosure program
- Tax Refund by FTB to Pay off Debts
California Employment Development Department (EDD) Audit Representation
Carlsbad businesses, particularly those in the tech and service sectors, must be vigilant about California state payroll taxes. The California Employment Development Department (EDD) conducts audits to ensure employers are properly withholding and remitting payroll taxes. Missteps in this area can lead to severe civil penalties and even risk federal or state criminal tax prosecution.
One of the most scrutinized aspects during an EDD audit is classifying workers as employees versus independent contractors. Misclassification can lead to significant penalties, especially in light of AB5, which has tightened restrictions on who can be considered an independent contractor.
If your business is facing an employment tax audit or another tax enforcement action by the IRS or EDD, our experienced Carlsbad EDD Tax Audit Attorneys & CPAs, the Tax Law Offices of David W. Klasing, can work to guide your company through the audit process. We are experienced in working with both state and federal auditors and can successfully navigate the challenges presented by an audit, including but not limited to:
California Department of Tax and Fee Administration (CDTFA) Audit Representation
Businesses in Carlsbad 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. Suppose your Carlsbad business is selected for a sales tax audit. In that case, it’s crucial to stay calm and immediately seek the assistance of our dual-licensed Carlsbad 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, having our dual-licensed Carlsbad Internet Sales Tax Attorneys & CPAs guide you is beneficial. 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 Carlsbad Sales Tax Attorneys and CPAs for comprehensive advisory and representation, ensuring your business navigates and flourishes within California’s complex regulatory framework.
The CDTFA has updated its guidelines on disputing audit findings. While the CDTFA strives to provide clear instructions, navigating an appeal without professional tax representation is not recommended. Our dual-licensed CDTFA Audit Attorneys & CPAs in Carlsbad can guide you through the appeal process and help you challenge CDTFA determinations related to:
- Income Taxes
- Excise Taxes
- Payroll Taxes
- Property Taxes
- Corporate Taxes
- Small Case Request
- Estate and Gift Taxes
- California Sales and Use Taxes
What Are the Potential Outcomes of a California State Tax Audit in Carlsbad?
In some cases, a California state tax audit may conclude without requiring further action from the taxpayer. The auditor’s questions are satisfactorily answered, and the process ends smoothly. However, more often than not, audits do not resolve so cleanly. Many audits uncover issues, such as unpaid taxes, requiring additional steps after the audit concludes. Depending on the auditor’s findings, the potential outcomes of a state tax audit in Carlsbad may include the following:
- The auditor may determine that you owe additional taxes, such as an unpaid California income tax liability.
- In addition to any unpaid taxes, the auditor may decide that you should be charged interest, which accrues on unpaid taxes, subject to certain limitations.
- The auditor may find that you have engaged in civil tax violations and impose penalties or fines accordingly.
- If the auditor uncovers evidence suggesting tax crimes, the audit may be terminated, and the case could be referred for a criminal investigation.
California State Tax Audit Lawyers and CPAs in Carlsbad
When you bring your state tax issues to the attention of the Tax Law Offices of David W. Klasing, you can avoid common pitfalls that often arise during tax disputes. Our interdisciplinary services provide for clients’ tax law needs, from preparation to criminal tax defense. We operate throughout the State of California, including Carlsbad, making it easy for our clients to get our hands-on assistance when they most need it.
Our dual-licensed Carlsbad, CA, Tax Attorneys and CPAs have extensive knowledge and experience dealing with various federal and California state tax issues. This incorporates representing clients in cases involving IRS audits, disputes with the CDTFA, EDD, BOE, and FTB, claims for refund, tax collection defense, innocent spouse relief, criminal tax defense, and more. As one of the top tax law firms in the nation, we are consistently ranked and awarded for our exceptional service and expertise in tax controversy and litigation. Our attorneys are recognized leaders and authorities in the field, with numerous media mentions and leadership positions. With our help, you can trust that your tax disputes will be resolved with a customized strategy tailored to your needs. We prioritize protecting your rights and interests throughout the litigation and strive to provide the best representation in all tax controversies. Contact our tax firm online today for a reduced-rate initial consultation. You can also call our Carlsbad office at (760) 338-7035 or contact our main office at (888) 564-1409.
Our Carlsbad office is conveniently located at:
701 Palomar Airport Rd Ste 300
Carlsbad, CA 92011
(760) 278-3508
