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Panorama City Attorney for Franchise Tax Board (FTB) Tax Audits

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    Located in the heart of the San Fernando Valley, Panorama City is a diverse and densely populated neighborhood within Los Angeles. Home to a wide array of businesses across retail, healthcare, and manufacturing sectors, Panorama City plays a vital role in the economy of the Greater Los Angeles area. However, this economic activity comes with the responsibility of adhering to California’s intricate and rigorously enforced tax codes. The Franchise Tax Board (FTB) and the IRS implement strict regulations, conducting audits, investigating potential fraud, and imposing significant taxes, interest, and penalties for non-compliance. As part of a high-profile metropolitan area, Panorama City faces unique tax challenges and heightened scrutiny, making it crucial for local businesses and individuals to seek skilled legal representation to navigate these complex tax obligations.

    What is California Tax Fraud?

    California tax fraud is defined as any intentional act committed to violate state tax laws, enabling a taxpayer to reduce their tax liabilities illegally. This often involves tax evasion, which can be categorized into evasion of tax assessment—deliberately underreporting income to avoid accurate tax assessment—and evasion of tax payment, which includes concealing assets to circumvent fulfilling tax obligations.

    Tax fraud encompasses a range of illicit activities beyond evasion:

    • Filing a tax return using someone else’s identity without their permission.
    • Claiming unauthorized deductions.
    • Submitting false documents alongside a tax return.
    • Failing to collect or remit employment taxes.
    • Not filing a tax return at all.

    For a conviction of tax fraud, the actions must be willful, meaning they were purposefully executed to defraud the State of California, not merely due to oversight or error. This distinction is crucial as it differentiates criminal tax fraud from mere negligence.

    Tax fraud occurrences usually lead to a criminal tax investigation being initiated. At this point, engaging the services of our Panorama City Criminal Tax Defense Attorneys & CPAs at the Tax Law Offices of David W. Klasing 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 excel at representing clients under high-risk federal or California state tax audits, especially when they blatantly cheat on the tax return under audit and thus fear criminal tax prosecution. When facing high-risk tax audits from agencies like the IRS, FTB, CDTFA, and EDD, 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.

    As such, residents and businesses in California must be vigilant about potential criminal tax violations and the signs that may indicate they are under a more rigorous investigation by the Franchise Tax Board’s criminal enforcement function. Like the IRS’s Criminal Investigation Division (CID), the FTB has robust investigative powers and focuses on severe tax fraud and evasion cases. The criminal function of the FTB, which works in close collaboration with the California Bureau of Investigation, is tasked with uncovering and prosecuting complex tax crimes within the state. These investigations often focus on large-scale tax evasion schemes, abusive tax shelters, and fraudulent tax preparer activities. The goal is to ensure compliance with California’s tax laws and prosecute cases involving substantial civil and criminal tax penalties.

    What Should I Do if I’ve Willfully Understated My Tax Liabilities in Panorama City?

    Our dual-licensed Panorama City Voluntary Disclosure Attorneys and CPAs offer experienced guidance through the IRS Voluntary Disclosure Practice (VDP). This program is crucial for individuals in Panorama City 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 Panorama City 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.

    Our dual-licensed Panorama City Voluntary Disclosure Attorneys and CPAs 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 our around Panorama City 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 non-compliance through a domestic or offshore voluntary disclosure 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.

    Call 888-640-3408 or schedule a reduced-rate initial consultation here at our Panorama City office or one of our other convenient locations across Southern California.

    FTB’s Role in Detecting and Prosecuting Tax Fraud

    The California Franchise Tax Board (FTB) is critical in auditing and investigating state income tax returns. These audits often target suspected underreporting of income or overstated deductions. The FTB also reacts to findings from federal audits, potentially initiating their investigations or levying additional state taxes based on federal results, often including penalties for non-compliance.

    The FTB is particularly vigilant in cases where taxpayers may:

    • Claim residency in another state while living in California.
    • Falsify claims for refunds or intentionally underreport California taxable income.
    • Repeatedly close and reopen businesses as a tactic to evade taxes.
    • Alter or falsify business records to misrepresent financial activities.
    • Operate within the underground economy to avoid tax obligations.

    These actions can trigger criminal tax investigations and prosecutions for income tax fraud by the FTB, especially when they involve deliberate attempts to deceive California state tax authorities. If you are already facing a civil tax audit, eggshell auditreverse eggshell audit, or criminal tax investigation, it is imperative to get legal help if you haven’t done so already. No matter what type of tax audit, enforcement action, or criminal tax investigation you are facing, our dual-licensed Panorama City FTB Audit Representation Attorneys & CPAs can appear with you or potentially in your place so that you can avoid incriminating yourself further or expose yourself to an overly stressful and intimidating situation. Let us shoulder the burden of these tax challenges for you, ensuring you receive the meticulous and empathetic representation you deserve during this critical time.

    What is the Office of Tax Appeals (OTA) and How Does It Help with FTB Disputes?

    In response to the complexities of tax disputes, the Taxpayer Transparency and Fairness Act of 2017 established the Office of Tax Appeals (OTA) as an independent body in California. The OTA handles appeals related to various tax issues, including sales and use taxes, corporate income taxes, and personal income taxes for California taxpayers. If you disagree with the results of an FTB audit, you have the right to protest or challenge the audit findings through this independent avenue. However, navigating the appeals process can be intricate and carries the risk of significant financial penalties if not handled correctly.

    How to Appeal an FTB Audit in Panorama City

    Filing an Appeal:

      • You have 60 days from the FTB’s decision to file an appeal.
      • Your appeal submission must include legal and factual arguments contesting the audit findings.
      • You can also request an oral argument date to present your case in person.

    Presenting Your Case to the FTB:

      • An impartial representative from the FTB will first review your initial appeal.
      • During this stage, you may present legal documents, oral arguments, and other evidence to demonstrate inaccuracies in the audit findings, either in legal or factual terms.
      • The FTB will then decide whether to uphold, modify, or withdraw the original tax assessment based on the evidence provided.

    Escalating to the Office of Tax Appeals:

      • If the FTB’s internal appeals process is unsatisfactory, the next step is to appeal to the OTA.
      • The OTA was explicitly created to provide a fairer hearing process than the prior system managed by the Board of Equalization (BOE).
      • You must file your intent to appeal with the OTA within 30 days following the FTB’s final decision.
      • The OTA will then review all presented evidence and issue a binding decision.

    Requesting a Rehearing or Pursuing Legal Action:

      • If the OTA’s decision is unfavorable, you can request a rehearing if you have new evidence or believe there was an error in the decision-making process.
      • As a last resort, you can file a lawsuit in the California Superior Court, representing the most formal step in the tax appeals process.

    If you intend to protest the outcome of an FTB audit, consult an experienced Panorama City tax lawyer to ensure that you are taking the best action to protect yourself. At the Tax Law Offices of David W. Klasing, our tax professionals have represented Californians in tax appeals before the IRS and FTB for nearly three decades and will take your case to litigation if necessary to put you in the best position possible. We have an in-depth understanding of OTA audits and FTB procedures and will work tirelessly to protect your best interests from day one of your matter.

    Contact Our Panorama City FTB Audit Lawyers Today

    At The Tax Law Offices of David W. Klasing, we have extensive experience with the California Department of Tax and Fee Administration (CDTFA), Office of Appeals (OAT), Franchise Tax Board (FTB), and Employment Development Department (EDD). We provide an invaluable understanding of tax, estate and gift, and business laws per your circumstances. Partnering with us ensures proactive planning, compliance, and maximizing opportunities within the tax law framework.

    Whether you have recently been notified that you were selected for an audit and need help navigating the following steps or have already been audited and are now seeking FTB or IRS appeals representation, our aggressive IRS, FTB, CDTFA (BOE), and EDD negotiators (where necessary Tax Litigators) are ready to act on your behalf. To date, we have never lost in tax court. We won’t take your case if we don’t believe we’ll win.

    For a reduced-rate initial consultation, call our tax offices immediately at (888) 640-3408 or contact the Tax Law Office of David W. Klasing online.

    Our Panorama City Office is Conveniently Located at:

    14500 Roscoe Blvd 4th floor

    Panorama City, CA 91402

    (818) 935-6098

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    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

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