Awards & Recognition
If you own or operate a childcare business in California, you may be selected for a tax audit by the IRS, or by state tax agencies such as the Franchise Tax Board (FTB), California Department of Tax and Fee Administration (CDTFA), or Employment Development Department (EDD). Protect yourself against a tax audit while getting tailored business tax guidance in a post-TCJA landscape: hire an experienced and dependable Los Angeles tax audit attorney, like those at the Tax Law Office of David W. Klasing.See our Audit Representation Q and A Library Supported by a dedicated team of CPAs, our Los Angeles tax lawyers proudly provide award-winning legal and accounting services to childcare companies and independent contractors throughout L.A. and its suburbs. If you have been chosen for an IRS or California state audit, have been placed under criminal tax investigation, are being questioned regarding potential tax fraud, or simply need tax guidance before making a business decision, the Tax Law Office of David W. Klasing is here to offer 24-hour support.
Why Did the IRS, CDTFA, EDD, or FTB Choose Me or My Childcare Business for a Tax Audit?
Overall, the likelihood of being chosen for an audit is statistically low, with the IRS examining anywhere from approximately half a million to 1 million returns per year. That being said, there are variables that can increase your odds of being selected for an audit, whether the taxpayer is an individual or a business entity (such as a C corporation, S corporation, or limited liability company). Common examples of audit triggers and risk factors include, but are not limited to, the following:
- Claiming excessive tax credits, or claiming credits that are commonly associated with IRS tax fraud (such as the Child Tax Credit)
- Owing back taxes or having unfiled returns, such as unfiled California income tax returns
- Making multiple late tax payments or filing multiple delinquent returns
- Failing to report all sources of income (such as reporting the payments from certain clients, but not others)
- Failing to report all taxable income (such as reporting $90,000 despite earning $250,000)
Being reported for suspected tax fraud by another taxpayer, with various government websites explaining how to report a daycare to the state for tax evasion easily and anonymously
California + Federal Tax Audit Attorneys & CPAs for Childcare Companies
Regardless of which tax agency performs a childcare business tax audit, the results can include costly tax determinations, substantial interest charges, and one or more civil penalties – or, in cases where indicators of fraud are discovered, even a federal or California prison sentence. In light of the devastating outcomes that can result from a California or Federal tax audit, it is vital to hire an experienced tax defense attorney as early as possible in the process, ideally before the high risk (egg shell) audit has been initiated. If you are chosen for an audit, you will be notified with a written form describing the underlying causes of the tax examination (such as particular tax credits or deductions claimed).
Our office provides representation in all types of tax audits, including but not limited to IRS tax audits, California employment tax audits, FTB income tax audits, worker classification audits, audits of cash-intensive businesses, California sales tax audits and eggshell or reverse eggshell audits. Whether your audit involves purely civil matters, or places you at risk of criminal tax exposure, we will act swiftly and strategically to mitigate the damage and identify the safest possible path forward. Our objective is to help you reenter the tax system with minimal loss and danger, a goal we will pursue tirelessly no matter how complex the issues involved.See our Sales Tax Q and A library
See our Offer in Compromise Q and A Library See our Tax Relief and Resolution Q and A Library
See our Liens Levys and Garnishments Q and A Library See our Employment Tax Law Q and A Library
Audit Appeals Representation for Daycares, Babysitters, Nannies, and Au Pairs
You may find that you disagree with the results of your tax audit. If you believe that the auditor’s findings are incorrect – for instance, if you believe that the IRS improperly assessed tax penalties, or that the FTB is charging you more interest than you actually owe – you may dispute the results by filing an appeal (assuming simpler approaches, such as mediation, fail to provide resolution). If the appeal fails, our tax litigation attorneys may be able to bring the case further, taking the IRS to court to dispute your alleged debts. Our IRS appeals attorneys have extensive experience with this exceptionally complex area of tax law, and have repeatedly obtained favorable outcomes for individuals and business entities in various federal tax courts.See our IRS Appeals Q and A Library See our Tax Litigation Q and A Library
Los Angeles Combo Tax Lawyer & CPA for Childcare Providers
Effective audit and appeals representation is essential to “level the playing field” and give your business a fair fighting chance against the IRS. Even if you are not at high risk for an audit or criminal tax investigation, it is vital to maintain tax compliance, planning an effective strategy supported by solid bookkeeping and accounting practices. Otherwise, you may miss out on valuable business opportunities within the tax code, such as opportunities to reduce corporate tax liabilities. Our Los Angeles business tax attorneys can help you assess the tax consequences of mergers, expansions, and other transactions, enabling you to make decisions that align with your financial goals.
Contact us online right away to set up a reduced-rate consultation, or call our Los Angeles tax lawyers at (310) 492-5583 for assistance. Please note that meetings at our Los Angeles location are by appointment only.
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
