California Accountant & Tax Attorney for Entertainment Companies

California Accountant & Tax Attorney for Entertainment Companies

California is the heart of the U.S. entertainment industry. Enduring and iconic, Hollywood is home to the film and TV industries, attracting actors, producers, directors, and screenwriters from all over the country and the world. Los Angeles also draws countless numbers of musicians, dancers, comedians, and entertainers, driven by opportunities to perform in world-famous clubs and theatres. However, while the entertainment industry presents life-changing opportunities, it is bound by strict tax regulations. The failure to comply with those regulations can end in a tax audit that gives rise to costly penalties, or even an IRS criminal tax investigation.

See our Audit Representation Q and A Library

See our Audit Representation Q and A Library

Actors, musicians, production companies, movie theatres, and similar entities are routinely audited to ensure they are filing and paying state and federal taxes correctly. If noncompliance is discovered, the outcomes may include civil penalties, interest charges, or even federal prosecution. At the Tax Law Office of David W. Klasing, our innovative, forward-thinking team of tax attorneys and accountants provides audit and appeals representation, criminal tax defense representation, and business bookkeeping services for entertainment companies statewide. Whether you are facing a state or IRS tax audit, are concerned about criminal tax exposure, or simply have questions about best practices for bookkeeping and accounting, rely on our California tax lawyers and CPAs for clear and trustworthy guidance.

See our IRS Appeals Q and A Library

See our Tax Litigation Q and A Library

IRS + California Tax Audit Attorneys for Entertainment Companies, Musicians, and Performers

Though the likelihood of selection for an audit is low for most taxpayers, there are various government agencies that may choose you or your business for an examination. If selected, you will receive written notification with an explanation of the reason for the audit. Examples of “red flags” and taxpayer attributes that can trigger an audit include the following:

  • Claiming improper actor tax deductions or other tax deductions for entertainers
  • Failing to file tax returns
  • Failing to pay self-employment taxes, where applicable
  • Filing late (delinquent) tax returns
  • Omitting certain sources of income from returns
  • Underreporting or overreporting income
  • Working with companies or individuals who have been audited or who are presently under investigation

Most taxpayers are already familiar with the Internal Revenue Service (IRS), which strictly handles federal tax matters. State tax audits are, depending on the issues in focus, performed by either the Franchise Tax Board (FTB), including California income tax audits; the California Department of Tax and Fee Administration (CDTFA); or the Employment Development Department (EDD). Our tax firm represents entertainers and entertainment companies in IRS tax audits, FTB tax audits, CDTFA tax audits, and EDD tax audits, including criminal tax audits such as reverse eggshell audits.

See our Employment Tax Law Q and A Library

See our Sales Tax Q and A library

Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship.  With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link.   Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.

Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company?  Absolutely not!  See our policies that address this issue here:

State + Federal Tax Audit Appeals Representation

When an audit concludes, the auditor may find that you owe additional taxes (called a “deficiency”), owe interest, and/or are subject to civil penalties, such as the monthly 0.5% penalty for failure to pay taxes. However, your auditor does not necessarily have the final word. Open to taxpayers who meet the applicable eligibility and deadline requirements, “appeals” is the process for contesting an IRS, FTB, CDTFA, or EDD finding – for instance, an improper finding that you owe additional taxes, or are subject to civil penalties. If you have a factual or legal basis for disagreeing with the results of the audit, our attorneys are prepared to vigorously represent your interests by filing an appeal, representing you at mediation, or if necessary, litigating your case in federal court.

California CPA + Tax Lawyer for Entertainers, Actors, and Film Production Companies

Supported by a knowledgeable and hardworking team of business CPAs our versatile, award-winning California tax attorneys are dedicated to protecting your business if you have been chosen for an audit, targeted for a criminal tax investigation, or questioned by the IRS regarding another taxpayer’s case. We are sensitive to unique tax needs of media and entertainment companies, enabling our team to deliver tailored, strategic service that aligns with your goals and promotes your creative vision. We can assist you with a film production audit, movie theatre audit, intellectual property or royalty audit, or any other type of examination.

For questions regarding a civil tax audit, a criminal tax issue, or other tax compliance issues, contact the Tax Law Office of David W. Klasing online, or call our main office at (800) 681-1295 to arrange a reduced-rate consultation. With tax offices located in Los Angeles, Irvine, San Francisco, Panorama City, Sacramento, Oakland, San Diego, and beyond, we are positioned to serve taxpayers throughout Northern and Southern California. We also provide an array of international tax services, including FBAR audit and foreign account tax audit representation, enabling us to provide tax support for entertainment companies and performers who are on tour or on location overseas.

See our FBAR Compliance and Disclosure Q and A Library 

See our Foreign Audit Q and A Library

See our 2011 OVDI Q and A Library

Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship.  With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link.   Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.

Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company?  Absolutely not!  See our policies that address this issue here