You need more than persistence or talent to achieve success as a gardener or landscaper in California’s competitive economic climate. You also need to engage in sound tax planning, with a focus on tax compliance and tax audit preparedness to help your business avoid penalties. Landscapers and other small businesses are at high risk of being audited by the IRS, the California Franchise Tax Board (FTB), or other tax agencies, making it essential to ensure your business is ready before it’s already too late.See our Entity Selection Q and A Library
See our Business Purchases and Sales Q and A Library
See our Online Business Q and A Library
See our Car Dealership Audit Q and A Library See our Business Succession Q and A Library
See our International Tax Q and A Library
See our Domestic Estate Planning Q and A Library Whether you have received an IRS audit notification, need help disputing the results of your landscaping business tax audit, or simply have questions about ways to improve your current bookkeeping and accounting systems, talk to the trusted Los Angeles tax attorneys at the Tax Law Office of David W. Klasing about how we can help. For over 20 years, we have consistently delivered superior tax, accounting, and legal services to global clients, distinguishing our tax firm as a leading authority on state, federal, and international tax law for businesses and individuals. From criminal tax defense and IRS appeals representation to California state tax audit representation for small businesses, we are fully equipped to meet – and exceed – all of your company’s tax needs.See our Audit Representation Q and A Library
L.A. Tax Audit Attorneys for Landscapers + Gardeners (IRS, FTB, CDTFA, EDD)
With some fluctuations, the IRS examines approximately one million tax returns each year. The likelihood of an IRS audit is especially high for non-filers, delinquent filers, small business owners, the holders of offshore financial accounts (such as foreign bank accounts), high net worth individuals, and various other groups. As the owner of a landscaping business, your risk of an audit may be elevated.
Our Los Angeles tax audit defense lawyers assist individuals and business entities with all aspects of state, federal, civil, and criminal tax audits, from preparing before the audit, to representing you during the audit, to disputing the results of the audit, where appropriate. Types of tax audits our office handles include:
- IRS Tax Audits – Federal tax audits of businesses or individuals
- FTB Tax Audits – California individual or business income tax audits conducted by the Franchise Tax Board
- CDTFA Tax Audits – Sales tax audits, including internet sales tax audits, conducted by the California Department of Tax and Fee Administration
- EDD Tax Audits – California employment tax audits conducted by the Employment Development Department
See our Audit Representation Q and A Library See our Employment Tax Law Q and A Library See our 2011 OVDI Q and A Library
See our FBAR Compliance and Disclosure Q and A Library See our Foreign Audit Q and A Library
Can an Audit of My Landscaping Business Result in Tax Evasion Charges?
If your tax return contains substantial errors, the IRS may choose you or your business for a tax audit. A civil audit can turn into a criminal tax investigation if auditors discover “badges of fraud,” or indicators that the taxpayer has engaged in fraud. Badges of fraud may include unfiled returns, delinquent tax returns, unreported income, underreported income, misclassified workers, improperly claimed credits or deductions, or the use of another taxpayer’s personal information on a tax return.
If an auditor finds badges of fraud, he or she will generally terminate the audit and refer the case to the IRS Criminal Investigation (IRS-CI) Division. If IRS-CI believes, after further investigation, that there is sufficient evidence to prosecute the taxpayer, the case may be referred to the U.S. Department of Justice (DOJ). Most of these cases involve felony charges, such as tax evasion (26 U.S. Code § 7201), willful failure to collect or pay over tax (26 U.S. Code § 7202), and willfully making and subscribing a false return (26 U.S. Code § 7206(1)).
Unlike auditors, IRS criminal investigators (“special agents”) are authorized to make arrests. If you are contacted by IRS-CI or a special agent for any reason, even in relation to another taxpayer’s case, it is in your best interests to consult a tax evasion defense attorney immediately.See our Criminal Tax Law Q and A Library
Can I Appeal if I Do Not Agree with the Results of a California or Federal Tax Audit?
An audit may produce inaccurate results for various reasons. For example, the auditor may have overlooked details, misapplied regulations, or simply made mathematical errors. Alternately, new evidence may have become available since your audit concluded. If these or related issues compromised the outcome of your audit, you can dispute the auditor’s findings by requesting an IRS, CDTFA, or FTB audit appeal.
You may refer to court decisions, legal statutes, and/or IRS regulations when making your argument. You may not appeal on any grounds deemed frivolous, such as arguments that taxes are unconstitutional. Your argument must be summarized in an IRS protest letter, which must be filed as part of your request for an Appeals conference. The California Office of Tax Appeals (OTA) follows similar procedures, making it possible to appeal the results of a state or federal audit.
If your dispute involves an amount less than $25,000, you may be able to file a Small Case Request, unless you are a partnership or S corporation. IRS mediation may be another possibility, but is not always successful or appropriate, especially in very large or complex cases.See our IRS Appeals Q and A Library See our Tax Litigation Q and A Library
Los Angeles Tax Lawyers + Accountants for Landscaping Companies
At the Tax Law Office of David W. Klasing, we are committed to finding solutions to even the most complex of tax challenges. Whether you are facing an indictment, a civil tax audit, or simply a confusing tax form, we are here to counsel and protect your landscaping business.
Contact us online right away to arrange a reduced rate consultation, or call our satellite Los Angeles office at (310) 492-5583. Alternately, you can reach our main office in Irvine by calling (800) 681-1295.
Please note all meetings at our L.A. location must be scheduled in advance.
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.