Dually Licensed California Tax Attorney & CPA for Aerospace Companies
California is a traditional stronghold for the U.S. aerospace industry, particularly Southern California, where economic giants like Northrop Grumman and Lockheed were once headquartered. California’s aerospace industry continues to soar in the new millennium, supporting private industry, government projects, and research programs around the world. However, while the industry holds immense financial and technological opportunity, it is also a minefield of tax regulations, posing unseen dangers to corporations and individuals who fail to consider their strategies carefully. At “best,” an oversight in your tax strategy could cost you valuable business opportunities – and at worst, could trigger a tax audit or even IRS criminal investigation.
At the Tax Law Office of David W. Klasing, we are California tax attorneys and CPAs with over 20 years of combined experience providing award-winning service to aerospace companies that are based or do business in California. Tax services we offer include IRS audit defense, California state audit defense, criminal tax defense, and audit appeals representation. We can also assist you or your business with tax compliance questions, personal or business tax preparation, and bookkeeping and accounting services tailored to the aerospace industry. David Klasing, in addition to being, a dually licensed California Tax Attorney and CPA, is a private pilot with an instrument rating with deep connections in the California General Aviation Community.
California + IRS Tax Audit Attorneys for Aerospace Engineering Firms
IRS vs. California Tax Audits (FTB, EDD, CDTFA)
The Tax Law Office of David W. Klasing represents aerospace engineers, aerospace firms, and aerospace investors in all types of tax audits, including the following:
- Aircraft tax audits
- California tax audits
- Civil tax audits
- Criminal tax audits
- Employment tax audits
- Foreign account audits
- Income tax audits
- IRS tax audits
- Worker classification audits
There are several agencies that may select you or your business for an audit if there appear to be issues with your state tax returns or the supporting schedules and attachments. These agencies are the Franchise Tax Board (FTB), which is authorized to conduct California personal and corporate income tax audits; the California Department of Tax and Fee Administration (CDTFA), which audits aerospace businesses with sales and use tax or special tax compliance issues (such as jet fuel taxes); and finally, the Employment Development Department (EDD), which, as its name suggests, is responsible for California employment and payroll tax audits.
Civil vs. Criminal Tax Audits
Some audits conclude uneventfully, with the auditor resolving the questions, or only recommending minor tax adjustments. However, some audits reveal serious errors that could be linked to tax fraud, such as failures to report bank accounts, failures to report sources of income, unsubstantiated deductions or credits or multiple years of unfiled tax returns. After the discovery of fraud at an aerospace company, an audit may be prematurely terminated and transferred to the criminal investigation unit of a federal or state taxing authority and criminally investigated – and, where appropriate, referred to the Department of Justice or to a District Attorney. In other instances, a criminal investigation and civil tax audit occur concurrently, which is known as a “reverse eggshell audit.”
At the Tax Law Office of David W. Klasing, we focus our strategy on limiting criminal tax exposure before a taxpayer is investigated or charged – for instance, by making foreign, domestic or California voluntary disclosures, filing amended returns, representing the taxpayer in tax audit proceedings, and taking other corrective actions to help the taxpayer reenter the system with minimal risk and damage. However, our tax evasion lawyers are equipped with decades of experience, and are ready to fight hard against preindictment misdemeanor or felony tax charges if the taxpayer is investigated during or following an audit.
IRS + California Audit Appeals Representation for Aerospace Firms
How Does My Business Appeal the Results of a Tax Audit?
Even if no criminal charges are filed, an audit can still result in three negative outcomes for taxpayers: (1) a proposed increase in the amount of tax you owe; (2) interest that has accumulated on the proposed unpaid taxes; and (3) civil penalties, such as failure-to-file or failure-to-pay penalties, or civil fraud penalty imposed for various tax violations. If any of these outcomes result from an auditor’s error as to the fact or law at issue, the taxpayer can dispute the results by filing an appeal, either with the IRS Independent Office of Appeals, or the California Office of Tax Appeals (OTA). To prevail, the taxpayer must clearly describe his or her arguments in a written notice, supporting it with factual, objective evidence such why the taxing authority have gotten the facts or the law wrong and what are the correct facts, tax statutes or prior court rulings that control.
Can My Company Sue the IRS?
Potentially, under limited circumstances. Tax issues that can be successfully litigated include Tax Court deficiency actions, in which the taxpayer disputes a tax assessment (after receiving a deficiency notice, or “90-day letter”); and refund actions, in which the taxpayer seeks a refund for payments he or she has already made in full.
California Tax Lawyers + CPAs for Aerospace Companies
Even the most innovative aerospace companies can be hamstrung by poorly executed tax strategies or suboptimal accounting practices. Let an experienced dually licensed tax attorney and CPA focus on your company’s tax planning or audit defense strategy, so that you can devote your energy to pioneering new growth. Contact us online today to arrange a reduced rate consultation or call the Tax Law Office of David W. Klasing at (800) 681-1295 for immediate assistance.
In addition to our staffed main offices in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad and Sacramento.
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