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    The Tax Law Offices of David W. Klasing

    One of The Best Tax Attorneys in San Bernardino

    San Bernardino is a great place to live with excellent services and a vibrant economy. Maintaining a strong tax base is important to provide the services in this area, which means state and federal tax authorities aggressively enforce the tax laws.

    Understand that if you have common or uncommon financial and tax situations, you may need the help of a team of local San Bernardino Tax Attorneys, CPAs (certified public accountants) and EAs (Enrolled Agents) to help you work through the legal situation and avoid penalties and collection actions from California tax authorities or the IRS.

    In the San Bernardino area, you may need help with tax issues in niche financial areas, such as cryptocurrency investments. Or if you have offshore bank accounts, income-generating assets or businesses, you may need advice for planning for international tax situations, such as FATCA compliance and FBAR filing requirements.

    Whether you’re concerned about an IRS notification regarding a tax audit, or you need advice for preparing to file your taxes, schedule a 10-minute call with a local dual-licensed San Bernardino, CA Tax Attorney and CPA. Contact the Tax Law Offices of David W. Klasing for the help you need.

    Just east of L.A., San Bernardino is the seat of San Bernardino County. It’s also home to more than 200,000 residents, with strong education, retail, and healthcare industries. San Bernardino’s businesses and residents are required to follow California’s complex tax code, in addition to federal tax laws. These laws are aggressively enforced by California state and federal tax authorities like the IRS and Franchise Tax Board (FTB), CDTFA and EDD which can impose harsh penalties for noncompliance. At the Tax Law Office of David W. Klasing, we have nearly three decades of combined experience assisting the San Bernardino region with tax planning, tax audits, criminal tax charges like tax evasion, international tax regulations like FATCA, and other tax matters. If you have a tax question, look to our dual-licensed San Bernardino State Tax Audit Attorneys + CPAs for dedicated support.

    California, Federal, and International Tax Services in San Bernardino

    At the Tax Law Office of David W. Klasing, we are a full-service team of tax attorneys and certified public accountants (CPAs) who combine decades of hands-on experience in civil, criminal, California, federal, and international tax law, including more than a decade of experience in public tax auditing. Under the leadership of dually certified attorney-CPA David W. Klasing, our nationally recognized San Bernardino tax firm is committed to providing results-oriented service. Among the vast sea of attorneys and CPAs in the nation, only a select few can boast dual licensure. Even fewer, a mere 3,000, have the esteemed privilege of having earned a Master’s in Taxation. David W. Klasing, a member of this elite group, brings academic excellence and over three decades of hands-on experience to the table, ensuring that our clients are shielded with the best defense against any tax challenges.

    David, with an impeccable “A+” rating from the Better Business Bureau and an unblemished 10.0 AVVO score, has carved a niche in federal and California state tax defense, offering both civil and criminal tax representation. He has held esteemed positions such as Past Chair of the OCBA Tax CommitteePast Chair of the California Bar Tax Procedure and Litigation Committee, and Past Education Chair of the American Society of Attorney CPAs.

    His mission is to restrict your tax debts and tax penalties to an absolute minimum, help you utilize the tax code advantageously, and work with you to achieve due compliance with the law.

    From our San Bernardino tax offices, which are conveniently located just off I-10 near the Valley View, South Pointe, and North Central neighborhoods, our personal and San Bernardino Business Tax Lawyers provide award-winning service to C corporations, S corporations, LLCs, partnerships, sole proprietors, U.S. citizens and residents, non-citizens and non-residents, U.S. expats, high net worth individuals, and other taxpayers. Whether you are seeking tax advice on how to pass an inheritance down to your children, have questions for our international tax lawyers about reporting a foreign bank account, need help preparing for a federal or California tax audit, need an aggressive tax defense lawyer to defend you against criminal tax charges, or want to start exploring your options for tax relief, the Tax Law Office of David W. Klasing offers around-the-clock assistance. We offer representation in a variety of federal and California state tax audits, including, but not limited to, the following:

    International Tax Help in San Bernardino

    The Internal Revenue Code is packed with financial and legal hazards. This is especially true for international taxpayers and business entities, which must follow a host of unique tax laws that do not apply to other types of taxpayers. For example, U.S. citizens who have foreign income must comply with a disclosure requirement known as the FBAR (Foreign Bank Account Report). In addition to complying with income reporting requirements and related tax laws, business entities must also consider issues such as entity selection, worker classification, and succession planning. These issues can be further complicated if the entity is “foreign” (out-of-state) or is based outside the United States.

    If you are a business owner in San Bernardino, are a San Bernardino resident who has foreign income, or are planning to conduct business in San Bernardino or the state of California, you should consult with the award-winning dual-licensed San Bernardino domestic and international tax attorneys and CPAs at the Tax Law Office of David W. Klasing for guidance. We have significant experience providing tax, accounting, and bookkeeping support to foreign and domestic businesses, and have devoted a significant portion of our practice to assisting international taxpayers and entities with FBAR compliance, FATCA compliance, and related matters. To book a reduced-rate initial consultation, contact us online, or call (909) 991-7557 today.

    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 in San Bernardino, our team of dual-licensed Domestic and International Business and Tax Attorney in San Bernardino is poised to protect your interests. Whether you’re an American expatriate or have multiple offshore business entities and investments, we provide meticulous attention to ensure your international tax dealings are reported with precision and foresight. 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.

    Furthermore, Our San Bernardino FinCEN Form 114 Attorneys & CPAs specialize in guiding taxpayers through the intricacies of FinCEN Form 114, a mandatory IRS form for reporting offshore bank & financial accounts. Our award-winning team, with a long track record in international tax representation, ensures compliance, safeguards your legal rights, and strategizes to minimize IRS civil and criminal tax and foreign information reporting penalties. Contact our San Bernardino office at (909) 991-7557 or (800) 681-1295 or contact us here online for assistance on the following:

    San Bernardino Tax Lawyers for Businesses and Individuals

    Careful tax planning is essential for any business owner. It does not matter how the entity is structured, where the business is headquartered, how many people the company employs, how much revenue it generates, or how long it has been operational – regardless of these and other factors, all businesses must comply with the notoriously complicated Internal Revenue Code (IRC), which is rife with legal and financial pitfalls for the unwary. Professional tax planning and accounting can ensure that your business meets all of its local, California state, and federal tax obligations properly, while simultaneously uncovering credits, deductions, exemptions, and other tax incentives that can help your business grow and thrive.

    The Tax Law Offices of David W. Klasing is a full-service tax and accounting firm that provides a wide array of tax-related legal and financial services to all types of business entities, ranging from local family-owned businesses here in San Bernardino to multinational corporations that are recognized around the globe. If you own or operate any type of corporation, partnership, sole proprietorship, limited liability company (LLC), or non-profit organization, our insightful CPAs and tax lawyers for businesses are standing by to provide the support you require to resolve your tax issue. From defending employers who have been charged with felony tax fraud, to helping business owners take advantage of changes to the law under the Tax Cuts and Jobs Act (TCJA), to educating new entrepreneurs on the drawbacks and advantages of pass-through entities versus those which are subject to double-taxation, our team is ready to approach any tax matter effectively and efficiently.

    If you own or operate a company in San Bernardino, outside of California, or even outside of the United States, it is imperative that you consult with a knowledgeable, skilled, and experienced San Bernardino Corporate Tax Attorney + CPA to ensure that you are fulfilling your legal duties while taking advantage of the Tax Code. Equipped with nearly three decades of experience assisting small, mid-size, and large businesses with all aspects of state, federal, and international tax planning and compliance, the award-winning tax professionals at the Tax Law Office of David W. Klasing are ready to provide comprehensive guidance, aggressive representation, and an unparalleled level of customer service. If you need advice or assistance concerning employment or business taxes, look to our tax firm for help you can trust. Click on the following to learn more:

    Whether you are starting a business in San Bernardino, 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 dual-licensed San Bernardino Business Tax Lawyers and CPAs provide services including, but are not limited to, the following:

    BBB Rating

    IRS, FTB, CDTFA (BOE), or EDD Audit Defense in San Bernardino

    Nobody likes the sound of the word audit. When a tax audit takes place, this means one of the federal or California state taxing entities is going to look through all your books and records to ensure that you have been honest on your tax returns. Even if you have been completely honest, you may need assistance gathering and reconstructing the abundance of records they will want to look at. If you have made intentional or unintentional errors, you could face severe fines and civil or criminal tax penalties. Below we explain the four major organizations that conduct tax audits in the state of California.

    IRS Audit Representation

    The IRS conducts all audits related to federal business and personal tax returns. Tax audits by the IRS can occur for a multitude of reasons, including randomly, but also because of suspected issues with underreporting of income, underpaying of certain taxes, or claiming excessive amounts of tax exemptions or credits you do not qualify for. Typically, an IRS tax audit will look back at around 3 years of your records but, in some cases, they can go back 6 years or even back to the dawn of time if fraud is discovered.

    Types of IRS, FTB, EDD & CDTFA Audits

    One of the best indicators for how your upcoming audit will go is the type of audit that the IRS, FTB, EDD or CDTFA elects to use. The federal government & California taxing authorities typically uses three general forms of audit: correspondence audits, office audits, and field audits. The severity and expected time of completion varies for each type of audit, so you should first identify how the government will audit you. Typically, this information is included in the government’s notice letter informing you of the tax audit.

    Certain audit situations are inherently riskier than the more routine audits that most taxpayers are familiar with. If you are being audited and you know for a fact that income is materially understated, deductions are materially overstated or you claimed credits that you were not entitled too, you may be walking straight into a high-risk eggshell audit where criminal tax issues are inherently at stake. An eggshell audit is reversed when the auditor knows or suspects that fraud has occurred, but they have not informed the taxpayer or forwarded the audit to criminal tax investigations for a formal criminal tax investigation. Both types of tax audits create an elevated risk of exponentially severe criminal tax investigation by the IRS-CI leading to prosecution.

    Correspondence Audit

    The least invasive of the three, correspondence audits, are often referred to as “mail audits” because they are conducted without any in-person interaction with an IRS, FTB, EDD or CDTFA agent. This will be initiated by an auditor sending you a notice in the mail that you are under audit and that the IRS requires further documentation to substantiate information on your returns. All contact between you and the auditor will take place through mail or electronically. If you provide the government with what they ask, you should expect a mail audit to conclude within three to six months. Our dual licensed Tax Audit Lawyers and CPAs can help you reconstruct the necessary records and deal with gaps between what you can substantiate and the positions you claimed on your returns.

    Office Audit

    In an office audit, you will be required to come into a nearby IRS field office with your records and documents for an agent to review. You should also expect the IRS to interview you at your appointment. This is just one reason why you should always hire a dual licensed Tax Audit Lawyer & CPA which is to prepare and accompany you to an office audit so that you are not doing anything to further jeopardize yourself. A dual licensed Tax Attorney & CPA will endeavor to protect constitutional rights, your net worth, and your very liberty. Office audits are intended in part to be intimidating to their targets. Seventy percent of communication is nonverbal, and the auditor will be watching your body language very carefully. Having an attorney make an appearance on your behalf will save you an incredible amount of stress. If everything goes as planned, these audits have a similar, short, expected time frame of three to six months.

    Field Audit

    Finally, a field audit is the most serious type of audit and involves agents coming directly to your home or place of business to look over the records in person and to interview you. Usually reserved for situations where criminal offenses are suspected or targets with complicated revenue & expense streams, field audits may take over a year to resolve, depending on the circumstances. These audits can lead to serious civil or criminal tax penalties, and it would be wise to engage the services of a dual licensed Tax Lawyer & CPA right away to assist you.

    Since field audits are so invasive, they create many opportunities for high risk eggshell or reverse eggshell audits to turn into criminal tax investigations if material understatement of tax occurred on the returns being audited. These audits must be closely monitored for potential criminal tax exposure to be identified and mitigated.

    One approach to such risky audits is carefully answering IRS inquiries to ensure full responsiveness while not providing unnecessary information. Every verbal or written response must be carefully planned and reviewed. This approach is much harder when the taxpayer faces an oral interview, especially if the taxpayer’s employees are interviewed at random with little to know advanced warning. The guidance of our Dual-Licensed Tax Audit Lawyers & CPAs can assist in these challenging situations.

    As the IRS points out, “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 San Bernardino 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:

    Eggshell Audits

    Eggshell audits are challenging because the taxpayer, and possibly their preparer, knows there is a material problem with the tax returns under audit and is delicate because the taxpayer does not want to lead the IRS directly to the issue, but actively obscuring the audit is not a feasible alternative as may constitute a felony in itself. Seeking out the counsel of the Tax Law Offices of David W. Klasing is ideal for addressing this situation.

    Our Dual-Licensed Tax Audit Lawyers & CPAs can deal with the IRS on your behalf and help ensure all documents and answers are responsive to the IRS but criminal tax admissions are avoided where possible. Taxpayers must cooperate with IRS representatives during an audit but are not required to provide more information than absolutely necessary. Helping achieve this delicate balance between adequately responding while not revealing excessive information is a value that our Tax Attorneys & CPAs routinely provide.

    In an ideal eggshell audit, the IRS will close the audit without a referral for criminal tax prosecution or a civil fraud penalty. Unfortunately, this is not always the case. If intentional misstatements are at issue that led to a substantial tax deficiency, a feasible goal is to resolve those issues in a purely civil audit and avoid criminal tax charges. A Tax Audit Attorney’s skill in persuasion and experience working with the IRS are invaluable while minimizing, where possible, any monetary damage and mitigating any criminal tax exposure.

    If the IRS is auditing your taxes and you know there are issues on the selected tax returns, do not wait to seek counsel. These high-risk Eggshell audits can quickly bloom into criminal tax investigations, especially if the auditor believes the taxpayer is intentionally misrepresenting information or omitting details during the audit. Engaging our Dual-Licensed Tax Lawyers & CPAs can help you respond to the IRS appropriately while limiting your civil additions to tax penalties and interest and mitigating any criminal tax exposure.

    Reverse Eggshell Audits

    Reverse eggshell audits occur when the IRS suspects tax fraud, knows damaging information and is investigating to confirm that knowledge without the taxpayer being aware. These audits frequently precede a formal criminal tax investigation and must be carefully navigated as they are extremely risky for the unsuspecting taxpayer.

    There are many ways the IRS could become aware of incriminating information that indicate that taxable income was fraudulently omitted, deductions were fraudulently overstated, or a credit was fraudulently claimed that the taxpayer was not entitled to. Other state and federal agencies could be investigating the taxpayer and share the information with the IRS. Under and international information sharing agreement, unreported foreign assets or financial accounts may be reported to the U.S. The auditor also may find indications of fraud in a civil audit and continue to investigate while stockpiling criminal evidence to provide to an IRS Special Agent in the criminal investigation division or to a civil technical fraud advisor.

    In any of these cases, the reverse eggshell audit must be treated as a very fragile situation. In a civil audit, the taxpayer must cooperate with the IRS and provide what is requested. Unfortunately, sometimes the auditor will request information that could be self-incriminating to the taxpayer. The taxpayer’s fifth amendment right to remain silent can be invoked but doing so will clearly indicate to the auditor that criminal tax evasion probably occurred.

    When facing a potential reverse eggshell audit, our dual-licensed Tax Lawyers & CPAs can help in several ways. First, we know how to identify that a reverse eggshell audit is taking place. We have seen many routine audits and can spot when something abnormal is occurring. Second, we can provide counsel on responding to official IRS requests appropriately and advise when to switch to a more defensive posture. Finally, if there is any way to resolve tax deficiency concerns without criminal tax charges, we can negotiate with the IRS representatives to try to minimize the civil assessments of additional tax penalties and interest and mitigate the risk of a lengthy and expensive criminal tax investigation.

    Our dual-licensed San Bernardino Tax Evasion Attorneys and 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 evasionoffshore 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 San Bernardino tax office at (909) 991-7557 or contact the Tax Law Office of David W. Klasing online here.

    Signs that an Audit is Morphing into a Criminal Tax Investigation

    Whether you are experiencing a high risk eggshell audit or suspect a reverse eggshell audit, some warning signs may indicate that the audit has taken a turn for the worse. The following are a few occurrences that should cause concern.

    • The auditor has disappeared. Once a civil audit uncovers indications of fraud, the audit is closed, and the case is referred for a criminal tax investigation. A criminal tax investigation may be on the horizon if your IRS agent has suddenly and inexplicably stopped sending document requests and cannot be reached.
    • Alternatively, if the auditor expands the scope of your audit to additional tax years or involves additional auditors, they may be laying the groundwork for a criminal tax referral.
    • The IRS agent starts asking you or your employees why certain tax decisions were made. Questions about intent signify that the auditor is determining whether an issue was intentional or caused by negligence.
    • Actions that imply the auditor is preparing evidence to be passed on to another investigator are cause for concern. These include increasing the number of copies of documents requested or recording audit interviews.

    These are only several red flags that might indicate a criminal tax investigation is underway or imminent. Our Dual-Licensed Tax Lawyers & CPAs are familiar with a wide variety of audit actions and can spot when something abnormal is occurring.

    Engaging the services of our San Bernardino Dual Licensed Criminal Defense Attorneys & CPAs 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 Californiaaudit client criminally prosecuted for tax crimes. When facing 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. 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.

    Our attorneys can help you avoid being blindsided by a criminal tax investigation, mitigate existing risks, and protect your rights as necessary. In addition to tax deficiency payments plus interest, audits can result in additional financial penalties, criminal tax charges, increased future scrutiny, and, worst-case scenario, prison time. These can be huge consequences for a taxpayer. Do not face these risks alone – ask our dual-licensed San Bernardino Criminal Tax Audit Attorneys & CPA for help today. We are here to provide aggressive, informed representation in areas including:

    • Cannabis Tax Evasion (Illegal Cannabis Retailers)
    • Cigarette and Tobacco Products Tax Evasion
    • Motor Vehicle, Diesel and Jet Fuel Tax Evasion
    • Intentional destruction of records
    • Registration of a vehicle, vessel, or aircraft outside of California for the purpose of evading tax

    Get Back into Tax Compliance without Facing Criminal Tax Prosecution in Santa Bernardino

    The IRS conducts many audits every year. Once you have been selected for federal or California state audit and have undisclosed foreign accounts and unreported offshore income-generating assets, your options to get yourself back into compliance become extremely limited, and you could end up facing severe civil and even criminal tax penalties and or criminal tax prosecution, especially if your conduct were willful concerning any non-compliance with income tax or foreign information reporting. If you’re in San Bernardino 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 Santa Bernardino Voluntary Disclosure Attorneys and CPAs 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 who has willfully committed tax evasion (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. We deal with:

    ● Compliance with California Taxes:

    Facing IRS or California State Tax Disputes in San Bernardino?

    When it comes to tax litigation disputes in San Bernardino, taxpayers may find themselves facing complex and challenging legal issues. In such cases, it is essential to hire a tax litigation attorney who possesses a unique combination of tax knowledge and litigation ability. In San Bernardino, taxpayers may need to navigate both federal and California state courts, including the United States District Court for the Central District of California, the United States Bankruptcy Court for the Central District of California, the United States Tax Court, the California Superior Court, San Bernardino County, the California Court of Appeal, Fourth Appellate District, Division Two, and the California Supreme Court.

    Our dual-licensed San Bernardino Tax Litigation Attorneys and CPAs are dedicated to providing unparalleled representation in IRS and California state tax disputes. We have maintained a record of never losing in federal tax court and only take cases we believe we will winWe will not take your case if we don’t believe we’ll win. By filing a tax court petition, you are likely to significantly improve your situation, especially when tax penalties and interest reduction substantially exceed litigation costs. Our approach involves two stages: first, with appeals, and then, we get a second bite at the appley via negotiation with IRS chief counsel. To date, we’ve never had to step foot in tax court, thus sparing our clients the most costly aspect of litigation. With the IRS’s 98% settlement rate, in court litigation is ordinarily avoided, which is advantageous for both parties.

    We have extensive knowledge and experience dealing with various federal and California state tax issues. This incorporates representing clients in cases involving IRS audits, disputes with the CDTFA, EDD, BOE, and FTB, claims for refund, tax collection defense, innocent spouse relief, criminal tax defense, and more. As one of the top tax law firms in the nation, we are consistently ranked and awarded for our exceptional service and expertise in tax controversy and litigation. Our attorneys are recognized leaders and authorities in the field, with numerous media mentions and leadership positions. With our help, you can trust that your tax disputes will be resolved with a customized strategy tailored to your needs. We prioritize protecting your rights and interests throughout the litigation and strive to provide the best representation in all tax controversies. Contact our tax firm online today for a reduced-rate initial consultation. You can also call our San Bernardino office at (909) 991-7557 or contact our main office at (800) 681-1295. Our services include representing the client in the following:

    Seeking Assistance with IRS Appeals Representation?

    Many taxpayers find themselves unsatisfied with the results of an audit, often involving additional tax penalties on taxes, or another IRS decision. If you do not agree with your auditor’s findings, you do not have to accept the results of the examination and may file an appeal instead. Our dual-licensed San Bernardino Appeals Attorneys and CPAs provide skilled representation before an appeals officer. An essential element of having a successful outcome in the appeals process is to have detailed and organized records. Utilizing our extensive training and experience, we make sure your documents are in order and that you are in the best position to prevail at the appeals stage.

    Dealing with the IRS’s Office of Appeals can seem daunting, but we bring strategic insight to the process. Whether you’re dealing with an IRS or California state tax audit, challenging a tax assessment, or seeking relief from IRS collection actions, our meticulous approach ensures you’re well-prepared for every step of the appeals process. From handling trust fund recovery penalties to disallowed business expenses, we will ardently fight for you, keeping you informed throughout the process.

    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 CDTFA Audit Attorneys 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:

    Click on the following IRS Appeals FAQs to learn more:

    California Franchise Tax Board (FTB) Audit Representation

    The California Franchise Tax Board (FTB) enforces the state’s income tax laws. The FTB may conduct their own investigations regarding issues that are unique to California’s income tax laws or may bring a challenge based on their assessment on your level of compliance. For example, there may be issues if you recently moved to California regarding when you became a resident and when you started owing taxes to the state. The IRS and the California FTB have different rules, for example, regarding net operating losses. As such, you may sometimes owe large debts to the FTB even if you are not found to owe anything to the IRS. California tax audits are no less serious than federal audits because California also prosecutes tax crimes and will report the results of the audit to the IRS. You, therefore, will be forced to amend your federal returns to agree to the results of the California Audit.

    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 San Bernardino 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:

    California Employment Development (EDD) Audit Representation

    While the IRS handles issues related to the federal payroll tax, California payroll tax issues are handled by an audit from the California Employment Development Department (EDD). Employers are required to withhold state payroll taxes out of their employees’ checks and hold them in trust until it is time to remit them to the state. If you avoid collecting such taxes or collect them from employees without sending them to the state, you could face serious civil and or criminal tax penalties.

    Perhaps the most common issue in EDD audits relates to classifying those who work for you as either an employee or an independent contractor. While you are required to collect payroll taxes from employees, you are not required to do so for independent contractors. The rules regarding who can be designated as an independent contractor are complex. A skilled Tax Lawyer can fight to show that you classified properly and that any improper classifications were made unintentionally. Our experienced San Bernardino 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:

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

    Sales taxes are the purview of the California Department of Tax and Fee Administration (CDTFA). CDTFA audits relate to potential underpaying of sales taxes or the failure to collect such taxes in the first place. These audits can be triggered randomly, especially in certain industries where cash payments are common, and sales taxes are often not charged properly. They can be extremely intrusive, asking to look at the records of every sale you made, and comparisons are also made to your federal and California income tax returns.

    It is important to engage a Tax Attorney as early as possible to ensure everything is conducted properly and to help you in the reconstruction of your books and records related to sales. If the CDTFA issues a finding that you owe back taxes, a tax attorney will have 30 days to file a protest to challenge it or you will be deemed to owe what they say you owe. This can be devastating for businesses if the amount is higher than what they can pay but retaining a skilled Tax Attorney can help prevent this from occurring.

    Cryptocurrency Tax Attorneys in San Bernardino

    As of 2024, 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. As part of its “Operation Hidden Treasure,” the IRS has been intensifying its efforts to monitor and enforce tax compliance on cryptocurrency transactions. The complexity arises mainly due to the perceived anonymity associated with many crypto wallets, making it challenging to track and tax transactions between unknown parties. To overcome this obstacle, the IRS has been effectively utilizing John Doe summonses. This legal instrument allows the IRS to petition a federal court to compel exchanges to release user information. This information is crucial for the IRS to determine the identity of U.S. taxpayers who may have failed to report their earnings from cryptocurrency transactions.

    Our Santa Bernardino Bitcoin and Virtual Currency Tax Attorney & CPA 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 inadvertently committed tax discrepancies 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 (909) 991-7557 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:

    Dual Licensed San Bernardino Sales Tax Attorneys and CPAs

    In San Bernardino, businesses 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 a California sales tax audits by the CDTFA. Considering the critical role of sales tax, which forms a significant portion of the California’s revenue, sales tax audits are frequent in California, particularly for businesses in high-risk sectors. If your San Bernardino business is selected for a sales tax audit, it’s crucial to stay calm and immediately seek the assistance of our dual-licensed San Bernardino, CA Sales Tax Audit Lawyers.

    Given the recent changes in California sales tax laws, particularly following the U.S. Supreme Court’s decision expanding state authority over online sellers, it’s beneficial to have our dual-licensed San Bernardino, CA 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, the differences between sales and use tax. Rely on our San Bernardino Sales Tax Attorneys and CPAs for comprehensive advisory and representation, ensuring that your business navigates and flourishes within California’s complex regulatory framework.

    In Need of Tax & Estate Planning in San Bernardino

    Our dual-licensed San Bernardino 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 a 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. In San Bernardino, we provide assistance in:

    How Do You Choose a dual licensed Tax Attorney & CPA in San Bernardino?

    Taxpayers experience issues in a number of different ways. Someone might be looking for tax law help when they have concerns about past or future filings, the possibility of facing an audit, or impending civil or criminal tax charges. In many cases, concerned taxpayers have more than one of these issues on their mind. Whether or not they know about the underlying issues, they could find themselves facing a litany of consequences in no time.

    To defend yourself against the most serious of potential civil and criminal tax law consequences, you will want legal counsel with experience and knowledge in tax law. But not just any Tax Lawyer will do. You would be best served by a legal service that can help you in every aspect of your tax situation. Not every law firm has in-house services of Certified Public Accountants (CPAs). By using an interdisciplinary approach to tax representation, dual-licensed Tax Attorneys and CPAs provide a better perspective on creative tax solutions that can benefit clients.

    This is why the dual-licensed Tax Attorneys and CPAs at the Tax Law Offices of David W. Klasing are uniquely qualified to assist clients in all areas regarding state and federal tax law. Our dual-licensed Tax Attorneys and CPAs have a unique skill set that allows us to provide a variety of services you might otherwise need to seek from two or even three different sources. By using our services, you make us your one-stop shop for all of your tax needs, streamlining your case and centralizing your tax defense strategy.

    You will also want a tax lawyer who is local to you, even if you are dealing with federal tax issues. San Bernardino residents can benefit from visiting their tax lawyer’s offices for an in-person discussion out of our Irvine office. Additionally, if you are called in for an IRS, FTB, EDD or CDTFA office or field audit, your local dual licensed Tax Attorney & CPAs can accompany to your appointment and make sure that you are treated fairly and equitably along the way. The Tax Law Offices of David W. Klasing have locations throughout the State of California, including San Bernardino, and can provide you with the tax law services that your case deserves.

    Why You Should Hire a San Bernardino Dual Certified Tax Attorney and CPA

    Add the full dual-licensed tax attorney and CPA infographic to your website.

    In addition to the broader services described above, such as our tax planning and tax audit services in San Bernardino, we also possess the expertise to assist with niche tax issues in developing areas of the law. For example, numerous clients have sought our assistance with cryptocurrency tax matters, such as IRS Bitcoin reporting requirements. We have also established ourselves as leading authorities in the area of international taxation, such as FATCA compliance and the FBAR filing requirement for taxpayers with offshore bank accounts

    From estate planning to innocent spouse relief – business formation to IRS criminal investigations – streamlined disclosure to tax preparation for individuals and corporations – the Tax Law Office of David W. Klasing approaches every matter with enthusiasm, precision, and meticulous attention to detail. To arrange a reduced-rate consultation regarding a personal or corporate tax issue, contact the Tax Law Office of David W. Klasing online, or call our San Bernardino tax office at (909) 991-7557 today.

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    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

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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.

    Satellite Offices

    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    (702) 997-6465
    (786) 999-8406
    (385) 501-5934