Oakland, CA Tax Attorney

Awards & Recognition

 

The Tax Law Offices of David W. Klasing

Whether you are a longtime resident of Oakland, are a local business owner, or recently moved to Oakland from another state or country and aren’t certain of your filing obligations, turn to the Tax Law Office of David W. Klasing for comprehensive personal and business tax support. To arrange a reduced-rate consultation, contact the Tax Law Office of David W. Klasing online, or call our Oakland tax office at (510) 764-1020.

One of The Best Tax Audit Defense Attorneys in Oakland

With a bustling population of over 400,000 residents, Oakland is one of the largest and busiest centers of trade in the San Francisco region. It’s also one of the largest ports in the country, with tens of billions of dollars in cargo passing through the port each year. But while the city of Oakland may be an economic powerhouse, even its most affluent residents can face intense financial pressures due to the unintended consequences of California state or federal tax regulations and civil/criminal tax enforcement.

Supported by nearly three decades of combined experience, our dual-licensed Oakland, CA, Tax Audit Lawyers & CPAs at the Tax Law Office of David W. Klasing are dedicated to helping local residents and business owners resolve their tax issues efficiently. With tax offices conveniently located in downtown Oakland near Lincoln University and the historic Fox Theater, we provide California state, federal, international, civil, and criminal tax defense, personal, and corporate tax services to individuals and business entities throughout the Oakland region.

We excel in addressing complex high risk tax dilemmas. Whether it’s assisting online vendors with California’s evolving sales tax regulations or steadfastly supporting businesses during high-risk IRS audits, our strategic interventions aim to curtail your tax liabilities and safeguard you from potential civil or criminal tax repercussions. From meticulously managing amended tax returns to handling intricate IRS home, office, correspondence, eggshell, or reverse eggshell tax audits, we always place your interests at the forefront, ensuring minimized risks and solutions tailored to your needs.

In addition to having years of experience as a dually licensed Tax Lawyer and CPA in Oakland, our founder and principal attorney, David W. Klasing, possesses decades of experience as a former auditor in public accounting and has represented clients in federal (IRS) and California (FTB, CDTFA (BOE), EDD) audits for nearly 30 years, enabling our tax team to navigate the audit process with precision and skill. Types of federal and California state tax audits in which we provide representation include:

Tax Audit Practice Areas

Industry Specific Audits

• Car Dealership Audits
• Dentist Audits
• Veterinarian Audits
• Attorney / Legal Industry Audits
• Doctor’s / Medical Industry Audits
• Real Estate Professional Audits
• Audits of Cash Intensive Businesses (Liquor Stores, Bars, Restaurants, Laundromats)
• Non-Filer Compliance Issues

Additionally, every Oakland business has unique tax needs depending on its size, assets, debts, goals, and other factors. We offer a broad, highly customizable range of business tax planning services, enabling our team to provide targeted, effective support for corporations, LLCs, partnerships, and sole proprietorships. Whether you are starting a business in Oakland, preparing for an employment tax audit, considering a merger, appealing a Franchise Tax Board decision, or rethinking your business plan after the Tax Cuts and Jobs Act, look to the Tax Law Office of David W. Klasing for business bookkeeping and accounting services you can rely on. Our Oakland Dually Licensed Business Tax Attorneys &CPAs provide services including, but are not limited to, the following:

• Business entity selection
• Business transactions
• California sales tax audits
• Tax havens
• C corporations and S corporations
• Limited liability companies (LLCs
• Outbound International Taxation
• Business succession planning
• California employment tax audits
• Employment tax
• Worker classification audits
• General partnerships and limited partnerships (LPs)
• Sole proprietorships
• Inbound International Taxation

Oakland International Tax Attorneys and CPAs

Oakland is one of the largest business trade centers in Northern California. A large amount of cargo passes through ports in Oakland every day. This can create some challenging tax situations for businesses in the Oakland area, as their income sources may be from elsewhere in California, across the United States, or from international sources. When you are facing an especially tricky tax situation, we have the deep and varied experience of our staff to handle it. We fully understand California state and federal tax regulations and know exactly how to apply them to the unique domestic and international tax situations you may face throughout the year. If you’re engaged in international business or managing foreign assets, navigating the complex landscape of global taxation is crucial to success. At the Tax Law Offices of David W. Klasing our dual-licensed Domestic and International Business and Tax Attorneys and CPAs in Oakland, CA, are poised to protect your interests.

Should you be facing an audit, whether a correspondence, office, or field tax audit, we are ready to stand by your side and navigate you through the meetings with the IRS, FTB, CDTFA (BOE) & EDD.

We have the ability to handle any kind of Oakland tax services you require, including tax planning, compliance, and tax controversy representation. Contact the Tax Law Offices of David W. Klasing today to schedule a 10-minute call with our experienced dual-licensed Oakland Tax Attorneys and CPAs. Whether you need help with your domestic or international tax compliance, you’re facing an audit, or you need domestic or international financial planning services with tax implications in mind, we are ready to help.

Our association with Marc Schwartz, a dually licensed International Tax Attorney and CPA, greatly enhances our ability to address the often complex federal offshore tax planning, compliance, and controversial implications surrounding engaging in international business and the associated mandatory information reporting.

• Tax Planning for American Expatriates and Businesses
• International Tax Liability Minimization
• International Estate Planning
• Business Succession Planning
• International Tax Treaty Application
• S. Entity Formation for Non-Resident Aliens
• International Tax Mistake Rectification
• International Business Entity Structuring
• Offshore Income-generating Assets
• Tax Planning for Foreign Companies
• Compliance with IRS Form 5472 for Foreign-Owned U.S. Corporations
• Tax Compliance for Expats
• Transfer Pricing Compliance and Penalties Avoidance
• Double Taxation Avoidance

Our Oakland FinCEN Form 114 Attorneys & CPAs specialize in guiding taxpayers through the intricacies of FinCEN Form 114, a mandatory IRS form for reporting offshore bank accounts. Our award-winning team, with a long track record of excellence in international tax representation, ensures compliance, safeguards your legal rights, and strategizes to minimize IRS tax penalties. Contact our Oakland office at(510) 764-1020 or contact us here online for assistance on the following:

• Compliance with the Bank Secrecy Act
• Anti-Money Laundering Compliance
• FinCEN Form 114 Reporting
• FBAR (Foreign Bank and Financial Accounts Report)
• FATCA (Foreign Account Tax Compliance Act) Compliance

IRS Audit Representation in Oakland, CA

One of the most important services the Tax Law Offices of David W. Klasing provides to our clients is audit representation. Audits are invasive and time-consuming processes that are happening at a higher rate than ever before. Even an honest mistake on a tax return can result in penalties and interest if that mistake is a material misrepresentation.

If you are facing an audit, the first step our dual-licensed Tax Lawyers and CPAs will take is to identify the type of audit the government is conducting. There are several types of audits, each with different ramifications: correspondence audits, office audits, field audits, eggshell audits, and reverse eggshell audits.

The first three types of audits differ in how they are conducted. The final two categories are unofficial names for audits where information is known by one party but not the other. Eggshell and reverse eggshell audits are particularly risky and would greatly benefit from legal counsel and financial advice. Our Dual-Licensed Tax Lawyers and CPAs offer experience and knowledge that can help guide you or your business through whatever challenges such audits present.

Correspondence Audits

The least invasive form of government audit, correspondence audits (also referred to as “mail audits”) take place entirely through traditional mail, e-mail, fax, and phone conversations. Assuming you cooperate with the government’s requests for more information, you likely will never have to directly confront IRS agents in person, and your case may be resolved in roughly three to six months.

Office Audits

If the government institutes an office audit, you will have to appear at a local IRS field office with all requested documentation that supports the financials in question. The location, as well as the date of the audit, will be indicated on the notice the IRS sends to inform you of the audit. You can have your dual licensed Tax Lawyer & CPA present at the office audit to assist you in your cooperation and to ensure that you are being dealt with fairly. Compliance with an office audit’s requests usually leads to resolution within three to six months of the taxpayer’s visit date.

Field Audits

Field audits are the most invasive and serious form of tax inquiry that the government can make. The government may attempt to conduct their investigation at your personal residence, place of business, or both, depending on the nature of the information sought. Field audits are typically only used where criminal behavior may be suspected or the nature of the financial situation makes the audit substantially more complicated. Field audits may take more than a year to resolve.

Field audits offer unique challenges to a business that correspondence and office audits do not. During a field audit, the IRS agent will review financial records, interview employees, and tour the office or company facilities. While it is expected that an IRS audit will require reviewing financial records, the other sources of information are more of a surprise and require additional preparation.

When a taxpayer responds to questions or documentation requests, it is important to be responsive while providing only necessary information. If such requests are in writing or given in advance, it is easier to work with your Dual Licensed Tax Lawyer & CPA to prepare adequate responses and identify risk areas. Oral employee interviews make controlling the amount of information given more difficult.

Auditors are trained to ask open-ended questions that can draw out long explanations. These responses may then generate additional questions and information the auditor did not know to ask about specifically. An attorney can direct each expected interviewee to only answer the exact question asked. This can help avoid excessive disclosure. Many employees are helpful by nature, which can drive them to overexplain. Our Dual Licensed Tax Lawyers& CPAs can work with expected interviewees to prepare them for expected lines of questioning and provide feedback on their responses. Such preparation and legal counsel can help stem the flood of information that an unprepared employee might tell the IRS while allowing them to be responsive.

In addition to helping a business effectively prepare for a field audit, an attorney should be present during the audit and at every interview. The presence of our Dual Licensed Tax Lawyers & CPAs provides the opportunity to evaluate any possible ulterior motives of the auditor. The IRS may collect evidence for a potential criminal tax liability investigation without informing the taxpayer. In this instance, the attorney can suggest actions to protect the taxpayer’s constitutional rights.

As the IRS points out (bold our emphasis), “A correspondence audit can expand and become an in-person (field) audit, particularly if the issues grow more complex or the organization does not respond.” You need the services of a tax lawyer during correspondence audits to avoid incurring civil or criminal tax penalties. Our dual licensed Oakland Tax Lawyers and CPAs can help you reconstruct the necessary records and mitigate any civil damages or criminal exposure for errors you made on the returns under audit. We will appear alongside you for an office audit if you have serious concerns about what was claimed on the return under audit.

For information about other aspects of the audit process, readers may be interested in our related audit articles, which explore topics such as:

• Common reasons the IRS will audit you
• How many years an IRS audit can go back
• How the IRS detects tax fraud
• Red Flags that make IRS Audits more likely
• IRS Audits explained for business owners in California
• Your basic taxpayer rights during IRS audits
• Dealing with the IRS’s “Wealth Squad” and high-income taxpayer audits

Are you in Need of a Criminal Tax Defense Attorney in Oakland?

Facing criminal tax charges would surely be a horrific nightmare for anyone so unfortunate to be accused. Just the mere allegation and subsequent investigation can result in sleepless nights and can have a very damaging emotional, financial, and reputational effect even where the wrongly accused is later found innocent.

When facing high-risk tax audits from agencies like the IRS, CDTFA, EDD, or FTB, certain red flags, such as destroyed records, underreported income, badges of fraud, or unfiled returns, can intensify the examination and may lead to high-risk eggshell and reverse eggshell tax audits (see below). As such, residents and businesses must be aware of potential criminal tax violations and the signs indicating that they might be under a more rigorous investigation by the IRS’s Criminal Investigation Division (CID). This is especially so when the taxpayer has a history of blatantly cheating on their federal tax returns and is now under audit and thus fears criminal tax prosecution. Even international tax evasion schemes that utilize remote tax havens are easily detected by the IRS, which works with tax and law enforcement agencies around the globe and throughout the United States.

If you or your small business has been selected for a tax audit in Oakland and you are concerned about a criminal tax investigation resulting from or occurring alongside the audit, engaging our Oakland Criminal Tax Audit or Investigation Attorneys + CPAs services at the onset of a high-risk audit / criminal tax investigation will maximize the possibility of a favorable outcome without escalating to criminal tax charges. We have never had a federal or California audit client criminally prosecuted for tax crimes. We are here to provide aggressive, informed representation in areas including:

Eggshell Audits

Eggshell audits are named because the taxpayer and their advisors are metaphorically walking on eggshells during the audit. This kind of audit occurs when the taxpayer knows potentially damaging information that the auditor does not. Typically, this kind of damaging information is a material, potentially fraudulent, misrepresentation of data on a tax return. A material misrepresentation could be the intentional or inadvertent understatement of income, the overstatement of deductions, the use of an incorrect or inappropriate credit, or some other error or omission that significantly understates tax liability for the year at issue. It may be tempting to try to prevent the IRS from discovering these errors; however, intentional nondisclosure or lying to an IRS agent can generate significant civil penalties and potential criminal tax charges.

The best strategy to prevent an eggshell audit from happening is to prevent tax noncompliance. Businesses should be diligent when preparing tax returns and maintaining financial records. Our Dual Licensed Tax Lawyers & CPAs can provide advice for any questions that arise or unsustainable tax law positions that at present are undetected. Seeking advice before a tax return is filed can save time, expense, and loss of peace of mind that commonly occur in a subsequent eggshell audit.

If you have discovered that your business is facing an eggshell audit, you should seek legal counsel quickly to mitigate the civil and criminal risks such an audit creates. Regardless of whether the error or omission in your tax returns was intentional or accidental, there are options to correct the issue instead of chancing the IRS uncovering it. Our Dual Licensed Tax Lawyers & CPAs can interact with the auditors on your behalf and guide your business through the voluntary disclosure process.

Reverse Eggshell Audits

A reverse eggshell audit is the flip side of an eggshell audit. In this case, the auditor has information the taxpayer does not know they possess. Usually, the criminal investigation division will know or suspect tax fraud and use what appears to be a civil audit to collect information that will be passed on to a criminal tax investigator. A civil and criminal tax investigation can also occur concurrently, with the civil investigation cloaking the criminal one.

These types of audits expose a taxpayer to criminal tax liability without notification and affectively limit their ability to utilize the constitutional protections against unreasonable searches and seizures and against self-incrimination to defend themselves. Typically, if a taxpayer is made aware they are under criminal tax investigation, they will hire a criminal tax defense attorney who will advise invoking the constitutional right to remain silent to avoid self-incrimination and strive to prevent unreasonable searches and seizures. However, if a taxpayer is unaware that a criminal tax investigation is occurring, they will ordinarily be much less guarded with their words. Here, the auditor may be feeding evidence to an undisclosed criminal tax investigator under the guise of a legitimate civil audit.

While this practice may not seem fair, it is legal and increasingly common. Reverse eggshell audits are best addressed when identified quickly so you can mitigate any risk. Fortunately, there are some things an auditor may do or questions that may be asked that serve as a bellwether of a reverse eggshell audit. Our Dual Licensed Tax Lawyers & CPAs are very familiar with the circumstances of routine audits and can recognize when something is out of the ordinary. At that point, we can question the auditor to discern whether they are looking for evidence of criminal tax fraud. The moment a criminal tax investigation is suspected, we can provide advice for your defense and take steps to protect your rights. Hiring an experienced attorney to assist with your audit can be hugely beneficial in identifying where hidden risk is present.

Our dual-licensed Oakland Tax Evasion Attorneys and Oakland IRS Fraud Attorneys & CPAs have vast experience handling most types of potential misdemeanor and felony tax evasion charges, including federal income tax evasion, state income tax evasion, employment tax evasion, sales tax evasion, corporate tax evasion, cryptocurrency and Bitcoin tax evasion, offshore tax evasion, and divorce tax evasion. We can also provide assistance with related tax matters, such as unfiled or delinquent tax returns, undisclosed foreign accounts and related foreign taxable income, and tax preparer liability. For a reduced-rate initial consultation, call our Oakland tax office at (510) 764-1020 or contact the Tax Law Office of David W. Klasing online here.

Get Back into Tax Compliance without Facing Criminal Tax Prosecution in Oakland with our dual-licensed Voluntary Disclosure Attorneys and CPAs

If you’re in Oakland and realize that you could face criminal tax prosecution over a history of blatantly cheating on your tax returns if discovered, voluntarily disclosing this history by knocking on the IRS’s door before they bang down your door is the most crucial step towards resolution without facing criminal tax prosecution.

Our dual-licensed Oakland Voluntary Disclosure Attorneys and CPAs and Oakland Tax Compliance Attorneys+CPAs offer experienced guidance through the IRS Voluntary Disclosure Practice (VDP). This program is crucial for individuals who have willfully understated their federal tax liabilities. It provides a systematic and secure avenue to rectify their tax status while avoiding criminal tax prosecution. Similarly, the State of California’s Franchise Tax Board (FTB) and the California Department of Tax and Fee Administration (CDTFA) provide methods for non-compliant taxpayers in Oakland to regain compliant status by coming forward with the details of their failure to comply with the California state tax code. The path to voluntary disclosure to the FTB depends on whether you are an in-state or out-of-state filer. We are dedicated to assisting in making sincere, comprehensive, and timely disclosures to the IRS and California state tax authorities, which includes arranging for the payment of owed taxes, interest, and penalties and cooperating with the tax agencies to determine the correct tax liability.

We skillfully navigate the complexities of various federal and California state voluntary disclosures, including domestic, offshore, CDTFA, and FTB voluntary disclosures, streamlined procedures, and delinquent FBAR and international information return submission procedures. As long as a taxpayer in Oakland who has willfully committed tax avoidance (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the federal tax noncompliance through a domestic or offshore voluntary disclosure with the help of our Oakland Foreign Account & Offshore Taxable Income Tax Compliance Attorney before the IRS has started an audit or criminal tax investigation/prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply. We deal with:

California Franchise Tax Board (FTB) Audit Representation

The California Franchise Tax Board (FTB) is responsible for audits related to your California income tax returns. These audits will usually have to do with suspected underreporting of the income you made from various sources or overstated deductions. The FTB is also informed of the results of any federal audit, and they will either open their own audit or will piggy-back off a federal audit and send you a bill for what you owe to the state based on the results of the federal audit along with additional penalties for not voluntarily amending.

There are some instances where the FTB will conduct its own audits into California-specific issues, like whether you are properly claiming state residency. Note that even if an IRS audit shows that you do not owe money to the federal government, it is possible that you owe money to the state because of differences in tax law at the state level. A tax attorney can help you understand issues unique to the state and work out a payment plan with the FTB if you do indeed owe.

If you disagree with the results of an FTB audit, you may challenge or “protest” the outcome. If FTB has contacted you and you are aware that you made false statements or used inaccurate reporting techniques when filing your taxes, do not face the audit alone. Our experienced dual-licensed Oakland FTB Audit Appeals Attorneys and CPAs will act as a barrier and stop the examining agent from inferring criminal admissions/confessions from your actions and words.

It is never prudent to ignore an FTB notice, even if you disagree with its findings or are unsure precisely what the notice is in reference to. Contrary to being forgotten, interest on any unpaid tax debts will simply continue accruing until your debt is satisfied. Click on the following to learn more:

• Procedures for Appealing an FTB Audit
• FTB’s Manual on Audits, Protests, and Appeals
• FTB Debt Collections with Disability Benefits
• California Franchise Tax Voluntary Disclosure program
• Tax Refund by FTB to Pay off Debts
• FTB Disability Recipient Debt
• FTB Outstanding Tax Debt
• California Tax Wage Garnishment
• Time Limits on FTB Tax Debt Collection

California Employment Development Department (EDD) Audit Representation

The California Employment Development Department (EDD) is generally concerned with conducting audits related to businesses paying the proper payroll taxes. Businesses are required to withhold payroll and income taxes from their employees’ checks and remit them to the proper government agency. If you fail to take the money out or fail to send it where it is supposed to go, you could be charged back taxes and associated penalties.

Many audits by the EDD are related to whether an individual should be classified as an employee or an independent contractor. Employers are required to withhold payroll and income taxes for their employees but not for independent contractors who work for them. The EDD will often challenge the classification of an individual as an independent contractor who they believe should be classified as an employee. The process for determining this is complex, and an experienced tax lawyer can help you attempt to prove that you have been classifying workers correctly or achieving damage control where you have not. Our experienced Oakland EDD Tax Audit Attorneys & CPAs can help gather evidence to show the EDD you have properly classified workers as independent contractors.

Note: with the passing of AB5 in 2019, worker classification audits are on the rise. Issues that can increase the odds of facing an employment tax audit or exacerbate the consequences of such an audit include:

• Misclassification of workers
• Cash-Intensive Business / Paying Employees in Cash
• Business funds to cover personal expenses
• Failure to keep sufficient business records
• Pyramiding payroll tax obligations
• Repeatedly running up payroll tax liabilities 
• Structured transactions

California Department of Tax and Fee Administration (CDTFA) Audit Representation

This type of audit ordinarily applies to businesses. The California Department of Tax and Fee Administration (CDTFA) conducts audits related to sales tax issues. Your business could be failing to charge proper sales taxes or charging them and failing to remit them to the state government as required. The CDTFA will request that you look at all your books and sales records to see if they match what has been reported.

They have also been known to send undercover officers into businesses to see if you are charging sales tax properly, especially where you run a cash-based business and are suspected of cash skimming or using a zapper program. This type of audit can easily turn into your worst nightmare. These can be some of the most complex audits and will require you to provide an abundance of records as well as to explain your business practices. An experienced tax attorney can help prepare you for dealing with the CDTFA and ensure that everything is filed in a timely way. For example, if the original auditor closes the case and sends a Notice of Determination that you owe money, you must file a petition to challenge this within 30 days or risk the Notice being final.

Recently, the CDTFA issued updated guidance on protocols and procedures for disputing, or “appealing,” CDTFA determinations. Though the CDTFA makes efforts to provide clear instructions for taxpayers, it is not recommended to attempt handling an appeal without professional tax representation. It is in your best interests to consult our experienced dual-licensed CDTFA Audit Attorneys & CPAs before filing an appeal or petition for redetermination due to the legal and financial complexity involved. We can help you appeal IRS and California state tax audit decisions involving:

• Income Taxes
• Excise Taxes
• Payroll Taxes
• Property Taxes
• Corporate Taxes
• Small Case Request
• Estate and Gift Taxes
• Failure to Respond to Notice of Deficiency within 90 Days
• Collection Appeals Program (CAP)
• Collection Due Process (CDP)
• Filing an Appeal vs. proceeding straight to Tax Court
• Sole Proprietorships
• Appeal an FTB Audit
• The California Office of Tax Appeals (OTA)
• California sales and use taxes
• Appealing an IRS Collection
• Installment Agreements
• Levies
• Liens
• Offers in Compromise
• Agreement with IRS Office of Appeals
• Updated Rules for Tax Appeals
• EDD Appeals
• CDFTA Appeals

Oakland Audit Appeals and Tax Litigation Attorneys

Tax law in Oakland, California, encompasses a multifaceted system of courts and agencies. Federal tax disputes are usually settled in the United States Tax Court, which presides over conflicts between taxpayers and the IRS. Taxpayers also have the option to litigate tax disputes in the United States District Court or the United States Court of Federal Claims. In California, tax disputes are generally addressed by the California Office of Tax Appeals (OTA). This unbiased and autonomous appeals body handles tax disagreements involving the FTB, EDD, and CDTFA (formerly BOE).

At the Tax Law Offices of David W. Klasing, our dual-licensed Oakland, CA Audit Appeals and Litigation Attorneys and CPAs meticulously assess litigation risks where latent criminal tax issues may exist to secure resolutions as soon as possible, drawing upon our deep understanding of the procedural rules and substantive issues at play. To date, we have never lost in tax court. We won’t take your case if we don’t believe we’ll win. The IRS’s 98% settlement rate is why we’ve never stepped foot in tax court, sparing our clients the most expensive part of tax litigation.

Our skilled tax litigation & appeals lawyers & supporting CPAs have extensive knowledge and experience dealing with various federal and California state tax audit issues. This incorporates representing clients in disputes involving IRS audits, disputes with the CDTFA (BOE) and FTB, claims for refund, tax collection defense, innocent spouse relief, criminal tax defense, and more. Whether it’s handling cases of criminal tax exposure, guiding you through a civil tax audit, eggshell audit, reverse eggshell audit, or defending against a criminal tax investigation, the expertise of our seasoned dual-licensed Oakland Tax Litigation Attorneys and CPAs is invaluable. As an experienced litigator, David W. Klasing Esq. M.S.-Tax CPA can represent you in the Federal or California Tax Court. Call (510) 764-1020 or schedule a reduced-rate initial consultation here at our Oakland office or one of our other convenient locations across Northern California. Our services include representing clients in the following scenarios:

• Tax Deficiency Disputes
• Alternative Dispute Resolution Options
• Tax Refund Litigation
• Recovering Administrative and Litigation Costs
• Audits and Negotiations with Federal Tax Agencies
• Litigation of Estate and Gift Tax Audits
• Expedited Appeals Process
• Collection Due Process Disputes
• Normal Appeals Process
• CDFTA Disputes
• Franchise Tax Board (FTB) Disputes
• Civil and Criminal Tax Litigation
• EDD Audits and Litigation
• Filing a lawsuit in Tax Court
• International Tax Disputes and Offshore Account Compliance
• Employment and Payroll Tax Disputes
• Tax Litigation Involving Tax Assessments, Penalties, or Enforcement Actions
• California Income Tax Attorney
• Penalty and Interest Issues in California
• Partnership Taxation
• Innocent Spouse Relief Litigation
• Tax Litigation Involving Tax Assessments, Penalties, or Enforcement Actions
• Civil and Criminal Tax Investigations and Litigation in California
• Partnership Taxation in California
• Collection Due Process Disputes in California
• Tax considerations for plaintiffs vs. defendants

Struggling with Cryptocurrency Taxation in Oakland?

As of 2023, the Internal Revenue Service (IRS) has significantly intensified its efforts to ensure compliance in cryptocurrency reporting, focusing especially on large amounts of unreported income. This enhanced focus can be attributed to the increasing mainstream acceptance and usage of digital assets, which necessitates more robust regulatory oversight to ensure tax compliance.

Our Oakland Bitcoin and Virtual Currency Tax Attorneys & CPAs have extensive experience in all facets of cryptocurrency, from understanding the nuances of airdrops to addressing challenges faced by individuals whose crypto was held with a brokerage that has since folded. The exposure is even more significant for those who’ve ventured offshore with cryptocurrency. However, there’s a silver lining: taxpayers who’ve intentionally committed tax evasion can often self-report through voluntary disclosure, potentially avoiding criminal tax prosecution and benefiting from reduced civil tax penalties.

Whether you’re dealing with Bitcoin, Ethereum, Litecoin, or any other virtual currency, call us today at (510) 764-1020 or schedule a reduced-rate initial consultation here, and we will successfully guide you through the record-keeping and reporting procedures required to file a tax return. We will also fight vigorously for those whom the IRS has accused of failure to report and help them stave off more severe civil and criminal tax penalties. Read our story “Tax Fraud is Going Virtual” to know more about virtual tax evasion. For more information, see the following:

• Cryptocurrency/Bitcoin tax law 101
• Accuracy-related Penalties as dictated by sections 6662, 6721 and 6722
• Reporting Bitcoin transactions on IRS Form 8949 and Schedule D filing
• Third-party Settlement Organization on a Form 1099-K
• 1031 exchanges with digital currencies
• John Doe summons
• Capital Gains Taxes
• Self-employment tax for Bitcoin mining
• Using Bitcoin to Commit Tax Evasion
• Responding to IRS letters on unreported cryptocurrency
• Reporting requirements for virtual currency payments
• Voluntary disclosure for unreported cryptocurrency transactions
• (IRS-CI) Expanding to Target Crypto Users
• Big Data Analytics to Punish Tax Evaders
• Representation in eggshell audits and criminal tax investigations for cryptocurrency
• International FBAR Lawyers for Bitcoin and Cryptocurrency Tax Issues
• Coinbase User Audits

Dual Licensed Oakland Sales Tax Attorneys and CPAs

Businesses in Oakland that are responsible for collecting sales tax must ensure they accurately remit these taxes to the California Department of Tax and Fee Administration (CDTFA). Discrepancies, such as failing to remit collected taxes or improperly taxed transactions, can lead to California sales tax audits by the CDTFA. Considering the critical role of sales tax, which forms a significant portion of California’s revenue, sales tax audits are frequent in California, particularly for businesses in high-risk sectors. If your Oakland business is selected for a sales tax audit, it’s crucial to stay calm and immediately seek the assistance of our dual-licensed Oakland, California, Sales Tax Attorneys & CPAs.

Given the recent changes in California sales tax laws, particularly following the U.S. Supreme Court’s decision in Wayfair expanding state authority over online sellers, it’s beneficial to have our dual-licensed Oakland Internet Sales Tax Attorney & CPAs guide you. Our services include internet sales tax audit representation, small business tax planning, and bookkeeping services, leveraging our deep understanding of the evolving business tax landscape. We are well-versed in the intricacies of California sales tax nexus and the differences between sales and use tax. Rely on our Oakland Sales Tax Attorneys and CPAs for comprehensive advisory and representation, ensuring that your business navigates and flourishes within California’s complex regulatory framework.

• Sales and Use Tax Audits and Litigation
• Internet Sales Tax
• Common issues encountered during sales tax audit
• Criminal Exposure as a Result of Sales Tax Audits

In Need of Tax & Estate Planning in Oakland

Our dual-licensed Oakland Estate & Income Tax Planning Attorneys and CPAs offer comprehensive tax & estate planning services. We are dedicated to ensuring that your final wishes are respected and that you provide effectively for your loved ones after your passing. By combining our expertise in financial planning, legal counsel, taxation, and accounting, we aim to help you secure and preserve your wealth for future generations. Estate planning is a crucial process that requires the compassionate and effective guidance of knowledgeable tax professionals. Our services encompass the creation of tax-efficient estate plans that align with your personal goals, assistance in preparing and filing estate tax returns, and providing expert advice on the implications of gift taxes.

Estate planning involves various elements, each of which must be tailored to your unique financial situation. This includes considering the size of your estate, the number of beneficiaries, and the complexity and locations of your assets, both domestically and internationally. This is especially pertinent if your holdings include offshore business & bank, financial, and investment accounts. Our experienced California Estate Planning attorneys, supported by a team of CPAs and CPA candidates, have decades of experience in guiding clients through the nuances of wills, trusts, advanced healthcare directives, and other estate planning and administration matters. We provide assistance in:

• Representing the Executor/Trustee of an Estate
• Wills and Trusts
• International Estate Planning
• Drafting revocable/irrevocable trusts
• Single-jurisdictional wills
• Creating generation-skipping trusts and family dynasty trusts
• Drafting living wills and living trusts
• Estate tax planning
• Malpractice Traps
• Utilizing tax-exempt organizations and foundations in the estate planning process
• Business succession planning
• Integrating retirement plans into estate planning
• Preparation of family limited partnership and limited liability company tax returns
• Independent estate administration
• Inventory Assets
• Decedent’s testamentary instrument
• Drafting durable powers of attorney and directives to physicians
• Guardianship and conservatorship services

Advantages and Disadvantages of Hiring a Tax Attorney vs. a CPA

Tax issues can be extremely complicated and can involve multiple different facets. Sometimes, it might not be clear whether your interests would be best served by hiring a Certified Public Accountant (CPA) or a Tax Attorney. While each has a unique skillset, they also overlap in many areas related to the filing of tax returns and issues related to IRS audits. In order to give yourself the broadest range of knowledge, education, and experience, your best bet when looking for tax advice is to retain a skilled dual licensed Tax Attorney and CPA like those at the Tax Law Offices of David W. Klasing.

Advantages of Hiring a CPA

CPAs are considered the best of the best in the field of accounting due to the broad knowledge they acquire from their education, including training in auditing, tax laws, bookkeeping, and business law, planning and strategy. They go through an extensive licensure process, where they must complete the necessary education and pass a difficult exam, among other requirements. Aside from basic accounting functions related to your taxes, they can help you keep the type of clean and complete records required to minimize the damages caused by an IRS audit, and can help you fill out and file your tax returns and related forms accurately and completely. CPAs are also skilled at keep or interpreting your financial records to identify problem areas that need improvement and save you potential headaches down the line.

Advantages of Hiring a Tax Attorney

Tax Attorneys are, first and foremost, Attorneys, meaning they have graduated from law school, passed the bar exam, and fulfilled the multitude of other requirements for licensure as an Attorney, such as taking continuing education courses each year. Unlike a CPA whose focus and skill will be in the area of preparing and filing tax forms and compiling and keeping records, a Tax Attorney’s focus will typically be on dispute resolution and keeping or bringing you back into compliance with the law. They will be superior and indispensable at providing representation during adversarial proceedings, such as an audit or especially during a criminal tax investigation because they are intimately familiar with Tax Law and your rights and obligations under it as well as the use and implementation of the best defenses to willful and non-willful tax violations.

Perhaps the most crucial advantage of hiring a Tax Attorney as opposed to a non-attorney CPA is the attorney-client privilege. This privilege applies to all conversations between you and your Attorney during your legal representation, as well as to employees in the office of the attorney like a paralegal or an accountant / CPA. If a Kovel letter is issued, the attorney-client privilege will apply to any accountants brought in to consult on your case provided they did not prepare or provide tax advice on the tax returns at issue and they are assisting your attorney to provide a legal service. This privilege is broad and will typically prevent an Attorney or someone working under their control from revealing privileged communications with the authorities without your permission or being forced to testifying against you like the CPA that prepared the returns at issue often is.

Accountant-client privilege is nowhere near as broad or sacrosanct. For this reason, you often hear stories of CPAs who realize they could face criminal tax charges for aiding in preparing a fraudulent tax return, flipping on their clients and turning state’s witness against them. They have their own reputation to preserve. With an Attorney, this is almost certainly not going to happen if they did not prepare or provide tax advice on the returns at issue. Anytime potential criminal tax liability might even remotely be an issue, speaking with a Tax Attorney under the attorney-client privilege is always the way to go.

How Do I Choose a Tax Attorney or CPA in Oakland, CA?

When you are searching for legal representation to help you handle your tax issues in Oakland, you will want your choice to be able to handle not just the issues of immediate concern, but what they could ultimately become, or any issues you may be facing that you are not even aware of yet. Tax law is a broad field, and not every lawyer or CPA can simultaneously handle every issue that may arise, such as tax preparation, strategizing to legally reducing ongoing taxation or providing civil audit to criminal tax investigation and prosecution defense.

By selecting to partner with a dual licensed Tax Attorney and CPA who can handle all the situations you might face, you create a one-stop shop that can streamline your case. This way, you won’t have to find (and pay) different representation to help you if your case expands past what your initial choice can handle. Not every firm is cut out to handle your entire case, and ego battles, territorialism and errors in communication between representation services can cause issues that you would not have encountered otherwise.

You will also want a source of tax law counsel that is local to you. This is helpful not just for understanding the state and municipal tax issues that apply to you specifically, but also for the purposes of physical representation at proceedings like office and field audits, hearings, and filing reviews.

The dual-licensed Oakland Tax Attorneys and CPAs at the Tax Law Offices of David W. Klasing are your answer to these concerns. Our firm takes an interdisciplinary approach to our clients’ tax needs, providing them with thorough and resourceful representation regardless of the issues they find themselves facing. We provide our services to clients throughout the State of California, including those in the City of Oakland.

Our Skilled Dual Licensed Oakland Tax Attorneys and CPAs Offer the Best of Both Worlds

There are numerous advantages to hiring a dual-licensed Tax Attorney and CPA to consult regarding tax planning and any potential tax issues that have or could arise. However, it can be time-consuming and prohibitively expensive to engage two different firms for advice regarding the same subject. For this reason, our experienced Dual Licensed San Jose Tax Attorneys and CPAs at the Tax Law Offices of David. W. Klasing offers you the best of both worlds for a reasonable price. Our committed tax professionals have simultaneously licensed Tax Attorneys and Certified Public Accountants and bring with them the wealth of education, experience and judgment that comes with it. We can both help you organize or reconstruct your records and file your domestic or international tax returns and offer skilled tax controversy representation if you are dealing with a federal of state audit or criminal tax investigation.

California, Federal, and International Tax Services in Oakland, CA

At the Tax Law Office of David W. Klasing, we have earned a reputation for taking on challenging, cutting-edge cases that other practices or tax attorneys in Oakland turn down. Our founder, dually-certified California attorney-CPA David W. Klasing, has more than a decade of experience as a public auditor, affording our tax team unmatched insight into strategies the government uses to examine, investigate, and penalize taxpayers. Combining our encyclopedic knowledge of state and federal tax regulations with an aggressive, proactive approach, we deliver effective tax controversy representation, planning, and compliance services.

From tax planning and preparation to tax audit representation to criminal tax defense, our zealous team of attorneys and accountants is here to answer all of your questions, compile and analyze your financial records, prepare you for interviews and court proceedings, and negotiate with tax authorities like the IRS, Franchise Tax Board (FTB), and California Department of Tax and Fee Administration (CDTFA) on your behalf.

We understand that no two taxpayers are dealing with an identical scenario, which is why we offer a wide breadth of services tailored to your individual needs. Tax services we offer in Oakland include:

• Business Tax Services
  • Business Entity Selection and Formation
  • Business Succession Planning
  • Business Transactions
• International Tax Services
  • FBAR and FATCA Compliance
  • Tax Services for Expats and Non-Citizens
  • Voluntary Disclosure Programs
  • BOE, CDTFA, EDD, FTB, and IRS Tax Audits
  • FBAR Audits
  • Payroll Tax Audits Civil and Criminal Tax Audits or Investigation and IRS Appeals/Litigation Representation

  California Franchise Tax Board (FTB) Audit Representation

  The California Franchise Tax Board (FTB) is responsible for audits related to your California income tax returns. These audits will usually have to do with suspected underreporting of the income you made from various sources or overstated deductions. The FTB is also informed of the results of any federal audit and will either open their own audit or will piggyback off a federal audit and send you a bill for what you owe to the state based on the results of the federal audit along with additional penalties for not voluntarily amending.

  There are some instances where the FTB will conduct their own audits into California specific issues, like whether you are properly claiming state residency. Note that even if an IRS audit shows that you do not owe money to the federal government, it is possible that you owe money to the state because of differences in tax law at the state level. A tax attorney can help you understand issues unique to the state and work out a payment plan with the FTB if you do indeed owe.

  California Employment Development Department (EDD) Audit Representation

  The California Employment Development Department (EDD) is generally concerned with conducting audits related to businesses paying the proper payroll taxes. Businesses are required to withhold payroll and income taxes from their employees’ checks and remit them to the proper government agency. If you fail to take the money out or fail to send it where it is supposed to go, you could be charged back taxes and associated penalties.

  Many audits by the EDD are related to whether an individual should be classified as an employee or an independent contractor. Employers are required to withhold payroll and income taxes for their employees but not for independent contractors who work for them. The EDD will often challenge the classification of an individual as an independent contractor who they believe should be classified as an employee. The process for determining this is complex, and an experienced tax lawyer can help you attempt to prove that you have been classifying workers correctly or achieving damage control where you have not.

  California Department of Tax and Fee Administration (CDTFA) Audit Representation

  This type of audit ordinarily applies to businesses. The California Department of Tax and Fee Administration (CDTFA) conducts audits related to sales tax issues. This could be your business failing to charge proper sales taxes or charging them and failing to remit them to the state government as required. The CDTA will request to look at all your books and sales records to see if they match what has been reported.

  They have also been known to send undercover officers into businesses to see if you are charging sales tax properly, especially where you run a cash-based business and are suspected of cash skimming or using a zapper program. This type of audit can easily turn into your worst nightmare.
  These can be some of the most complex audits and will require you to provide an abundance of records as well as to explain your business practices. An experienced tax attorney can help prepare you for dealing with the CDTFA and ensure that everything is filed in a timely way. For example, if the original auditor closes the case and sends a Notice of Determination that you owe money, you must file a petition to challenge this within 30 days or risk the Notice being final.

  • • Tax Debt Relief
      • Bankruptcy
      • Innocent Spouse Relief
      • Offers in Compromise (OIC)
      • Non-Filers

  Oakland Tax Attorney Practice Areas

  Oakland Tax Non-Filer Assistance Attorney + CPA
  Oakland California Sales Tax Attorney + CPA
  Oakland Criminal Tax Audit or Investigation Attorney + CPA
  Oakland Foreign Account & Offshore Taxable Income Tax Compliance Attorney
  Oakland Tax Evasion Attorney + CPA
  Oakland Innocent/Injured Spouse Attorney + CPA
  Oakland Tax Litigation Attorney
  Oakland, CA Audit Appeals and Litigation Attorney
  Oakland, CA Tax Attorney
  Oakland Dually Licensed Business Tax Attorney CPA
  Domestic and International Business and Tax Attorney in Oakland, CA
  Oakland IRS Fraud Attorney + CPA
  Oakland Tax Compliance Attorney + CPA
  Oakland FinCEN Form 114 Attorney + CPA
  Oakland CA Tax Audit Lawyer