California Combo Tax Attorney & CPA for Construction Companies
Everyone in the construction industry is impacted by complex tax regulations, which often lie at the center of costly yet avoidable lawsuits, IRS disputes, and contractual disputes. If you own a construction company, are a construction contractor, or plan to start a construction business in California, not only must you comply with state and federal tax codes; you must also ensure that you are prepared for the possibility of a Federal (IRS), or California (EDD, CDTFA and FTB) tax audit or criminal tax investigation. The IRS audits construction companies so frequently, it has even developed a construction tax guide strictly for examinations within this industry.
At the Tax Law Office of David W. Klasing, we are California tax attorneys & CPAs with a long record of success representing construction companies, construction workers, and independent contractors in civil and criminal audits, Appeals & Litigation before the IRS, in addition to California tax agencies such as the Franchise Tax Board (FTB) and Office of Tax Appeals (OTA). Equipped with over 20 years of business bookkeeping and accounting experience, including more than a decade of public accounting auditing experience, our California construction tax lawyers & CPAs can protect and advise your small or large business on all of the issues impacting your profits, from service tax on construction contracts to accounting for percentage of completion. Whether you need help preparing your business for an IRS audit, are concerned about criminal tax exposure, or have questions about the best accounting methods for construction companies, our office delivers an unmatched level of personal, practical service.
State + Federal Tax Audit Attorneys for Construction Companies in California
You are advised to seek legal guidance from a tax attorney immediately if you or your business has received a notice from the IRS, FTB, Employment Development Department (EDD), or California Department of Tax and Fee Administration (CDTFA) concerning a tax audit, a tax deficiency, a worker classification determination, or any other unresolved issue involving your records, employees, or corporate accounts (including offshore accounts). Depending on what the auditor finds, an examination of your business could lead to devastating outcomes, including an unexpected tax assessment, costly accumulated interest, and/or substantial civil penalties – none of which even begins to approach the danger involved in an IRS criminal investigation. If the government believes there is strong enough evidence to prosecute you for tax evasion or related offenses successfully, you will be at risk of jail time, in addition to much higher fines.
Where suggestions of fraud are found to exist, a civil tax audit can escalate into a criminal tax investigation, making it wise to retain the services of an attorney or attorney-CPA. Unlike a CPA or tax preparer, who is subject to different regulations, a tax defense attorney or attorney-CPA can protect your communications by invoking the attorney-client privilege.
What Sorts of Issues Does the IRS Look for During a Construction Industry Tax Audit?
The IRS leaves no stone unturned when scrutinizing business books and tax returns. During an audit of your construction company, issues the IRS may focus on include:
- Delinquent tax filings
- Improperly claimed tax credits
- Inflated business deductions
- Misclassified workers
- Missing or mismatched books and records
- Unfiled tax returns
- Unpaid tax liabilities
What if I Disagree with the Results of My Audit?
You may challenge, or “appeal,” the results of a federal or state tax audit with which you disagree – subject to certain conditions. These conditions include, but are not limited to, the following:
- You must file the necessary documents by the date provided on your notice.
- Your argument must be legal, mathematical, or otherwise rooted in fact. You may not dispute an audit finding based on constitutional, religious, moral, or similar bases.
It may be possible to resolve the issue through Alternative Dispute Resolution (ADR), such as IRS mediation, which is less formal and rigorous than other forms of dispute resolution. Conversely, your case may call for a more aggressive strategy, such as engaging in tax litigation by filing a lawsuit against the IRS.
California Tax Lawyers + Accountants for Construction Companies + Contractors
At the Tax Law Office of David W. Klasing, we represent commercial contractors, construction lenders, construction managers, heavy construction contractors, highway contractors, materials suppliers, residential construction developers, subcontractors, surety companies, and other parties that build, design, or fund construction projects in California. Whether you have unfiled back taxes, are unsure about how to classify your workers, are concerned about an upcoming audit, need help comparing the percentage of completion accounting method with the completed contract method, or have other tax and accounting questions, we are here to provide answers while shielding your business from damaging fines and penalties.
With tax offices located throughout Northern and Southern California, we are conveniently positioned to serve builders, suppliers, and developers statewide. To arrange a reduced-rate consultation regarding a civil, criminal, state, or federal tax matter, contact our tax firm online, or call the Tax Law Office of David W. Klasing 24 hours, seven days a week, at (800) 681-1295.
Tax FAQs for Construction Companies + Contractors
The following tax FAQs may be of interest to construction workers or business owners in the construction industry:
- Are a construction worker’s disability payments excluded from gross income?
- Can construction companies that misclassify employees as independent contractors face penalties?
- What are the latest rules for classifying independent contractors in California?
- What should construction workers know about the tax treatment of workers’ comp and disability benefits?
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:
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