Call Now (800) 681-1295

San Diego, CA Audit Appeals and Litigation Attorney

Awards & Recognition

irs audit lawyer
tax attorney
irs audit lawyers
tax attorneys
tax audit
Table of Contents

    The Tax Law Offices of David W. Klasing

    In San Diego, tax law encompasses a wide range of regulations and procedures that govern the collection and administration of taxes by federal and California state authorities. The Internal Revenue Service (IRS) is responsible for enforcing tax laws and collecting taxes at the federal level. The IRS handles various types of taxes, including income tax, corporate tax, payroll tax, and excise tax. At the state level, the California Franchise Tax Board (FTB) administers personal income tax and corporate tax, while the California Department of Tax and Fee Administration (CDTFA) oversees sales and use taxes, as well as various excise taxes and fees. The Employment Development Department (EDD) is another essential tax agency responsible for administering the state’s payroll tax program. It includes collecting unemployment insurance tax, state disability insurance tax, and employment training tax from employers. The EDD also plays a crucial role in enforcing compliance with labor and tax laws for both employers and employees in California, ensuring that appropriate payroll taxes are paid, and employment benefits are provided as required by law.

    Our tax litigation and appeals team is led by dually licensed Attorney-CPA David W. Klasing. Possessing a Master’s in Taxation, David is among an elite group of only 3,000 professionals in the country with similar credentials. Out of 1.1 million attorneys and 560,000 CPAs, there are merely an estimated 24,000 dual-licensed attorney-CPAs nationwide, setting David apart from the competition. He has served in prominent positions such as Past Chair of the OCBA Tax Committee, Past Chair of the California Bar Tax Procedure and Litigation Committee, and Past Education Chair of the American Society of Attorney CPAs.

    With over 20 years of experience assisting taxpayers in minimizing liabilities and efficiently resolving IRS disputes, David’s unique skill set grants our team a strategic edge in representing clients before protest or appeals officers, the chief counsel’s office, or U.S. Tax Court. We have a great track record of substantially improving our client’s overall tax situations through our protest, appeals, and litigation practice. Suppose we do not believe you will benefit from our representation. In that case, we will decline to take on the engagement. We always place our client’s needs for transparent, honest, fair, and zealous appeals and tax litigation representation over our inherent need to make a profit.

    San Diego Audit Appeals and Tax Litigation Lawyers Can Help

    Tax law in San Diego, 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.

    The tax process in San Diego involves several stages, including filing tax returns, audits, appeals, and, in some cases, tax litigation. Taxpayers are obligated to file their tax returns annually, and both federal and California state tax authorities may conduct audits to confirm these returns’ accuracy. If taxpayers disagree with an audit’s outcome, they can appeal the decision. Tax litigation becomes a critical factor at this stage, as it can help resolve unsettled disputes. The importance of tax litigation cannot be understated, as it ensures that taxpayers have a fair opportunity to present their case and protect their rights and interests in the complex world of tax law.

    While we try to avoid litigation, we are thoroughly prepared to bring a case to trial when doing so is in the client’s best interests. Whether we are negotiating a favorable compromise or are on the attack with hard-hitting litigation strategies, our San Diego audit appeals and litigation lawyers are zealous and dedicated taxpayer advocates. We help business entities and individual taxpayers appeal the results of the following:

    • California Income Tax Audits;
    • Civil and Criminal tax investigations and litigation;
    • Partnership taxation;
    • Collection due process disputes;
    • Penalty and interest issues.

    The taxpayer must request an appeals conference to file an appeal with the IRS Office of Appeals. It is accomplished by filing a written letter of protest, at which point the case will be referred to the Office of Appeals for review. The taxpayer must receive Letter 525, called the “general 30-day letter,” before submitting a protest letter. The written protest must contain, among other elements, the following:

    • A copy of the notice(s) you received
    • An overview of the assessment, interest, or penalties in dispute
    • A statement indicating your intent to appeal
    • Supporting evidence and documents, such as bank statements
    • The pertinent statute and case law supporting your arguments as to why you should prevail

    To file an appeal with the OTA, the taxpayer must mail or fax the below documents before the “appeal-by” date. This date will be featured on the taxpayer’s Notice of Action or Appeals Bureau Decision notice, which they will receive from the FTB or CDTFA when the audit is complete. Necessary documents to include in the “opening brief,” which is similar to an IRS protest letter, include:

    • A copy of the notice(s) you received
    • A written request for a hearing to review the disputed issue
    • Supporting evidence and documents

    By understanding the situations that may lead to a tax dispute and the process for filing an appeal with the appropriate tax authorities, taxpayers can better navigate the complex world of tax litigation and work toward a favorable resolution.

    Disputing the Results of a State or Federal Tax Appeal in Court

    If a taxpayer disagrees with the audit findings of the IRS, they can dispute it through an expedited appeals process or by filing a lawsuit in Tax Court. The expedited appeals process involves the auditor, their manager, and an appeals officer. However, this method may not always be effective, as the auditor and their manager are emotionally invested in the audit results. It often plays out as three against one.

    The usual appeals process is achieved by filing a tax court petition. It involves an independent review of the taxpayer’s case by an appeals officer not involved in the initial audit. The IRS auditor and manager are not directly involved in the appeals process. The appeals officer will independently consider the taxpayer’s arguments and supporting evidence and attempt to resolve with the taxpayer, who also weighs the litigation hazards to the IRS in the client’s fact pattern. If the appeals process does not result in a resolution, the taxpayer has a second bite of the appeal with the IRS Chief Counsel’s office on the Tax Court steps.

    Unfortunately, the appeals process alone is not always sufficient to resolve every tax dispute. If the taxpayer disagrees with the results of their appeal – an outcome particularly likely in high dollar disputes involving corporate taxes, substantial tax debts, or allegations of tax fraud – it may become necessary to petition the United States Tax Court, thus initiating litigation. Such a petition must generally be filed within 90 days of the taxpayer receiving Letter 531 (Notice of Deficiency). However, an exception grants up to 150 days for taxpayers who received Letter 531 outside of the United States.

    In addition to the U.S. Tax Court, tax litigation involves the United States District Court, the United States Court of Federal Claims, the California Office of Tax Appeals, and various California tax agencies. It is a complex and challenging process that demands the expertise of professionals who understand the intricacies of tax law and accounting principles. The dual-licensed tax litigation Attorneys and CPAs at the Tax Law Offices of David W. Klasing provide indispensable representation and guidance for taxpayers involved in disputes with federal and California tax authorities. With a comprehensive understanding of tax law, regulations, court procedures, and accounting practices, our team ensures that you receive strategic and effective representation tailored to your unique circumstances and navigate the complexities of tax litigation with confidence and precision.

    San Diego Tax Law Offices

    Many general litigation firms may provide clients with high-quality, zealous representation but lack detailed knowledge of tax law and procedure. On the other hand, our team is well-equipped to handle complex tax disputes, including offshore asset matters, voluntary disclosures, IRS audits, or disputes with the California state or local taxing authorities. By choosing the Tax Law Offices of David W. Klasing, you can trust that your tax disputes will be managed by professionals committed to achieving the best possible outcome on your behalf. Our San Diego tax litigation attorneys are forceful advocates and profoundly understand tax law and procedure. We leverage our in-depth understanding of tax laws and negotiation strategies to advocate for your interests in the IRS, FTB, CDTFA or EDD Appeals process’s. We aim to secure the best possible result while minimizing costs, stress, and potential risks associated with tax litigation. Our dual-licensed attorneys and CPAs focus on tax litigation and controversies, ensuring that our clients receive the specialized knowledge and experience necessary to resolve disputes through administrative resolution or litigation.

    On December 6, 2022, The United States Attorney’s Office for the Southern District of California issued the following update:

    San Diego Tax Preparer Sentenced for Illegal Operation of a $5 Million Money Transmission Business

    San Diego tax preparer, Jose Luis Gonzalez, was sentenced to 30 months in prison and ordered to forfeit $5,052,037 for transmitting more than $5 million through an unregistered money transmission business and claiming more than $19 million in fraudulent tax deductions in connection with the scheme. Gonzalez conspired with others to operate an unregistered money transmission business in the Southern District of California, leading to fraudulent tax returns and bogus deductions.

    This case is a clear example of the severe consequences of tax fraud and the importance of working with a reliable, ethical, and experienced tax litigation attorney. The situation underscores the potential risks and penalties associated with tax litigation. It highlights the importance of having skilled, dual-licensed Tax Litigation Attorneys and CPAs on your side who can adeptly navigate the complexities of tax law and accounting principles, providing invaluable protection and representation in tax courts.

    If you need help resolving a tax controversy, have questions about tax compliance, or need assistance with individual or business tax planning, contact the attorneys at the Tax Law Office of David W. Klasing today. Our experienced San Diego tax lawyers offer reduced-rate consultations on new cases or engagements. You can effortlessly get in touch with us through any of these three methods: dial (619) 780-2538, call (800) 681-1295, or contact us online. We are happy to schedule your matter for a reduced-rate initial consultation.

    Here is a link to our YouTube channel: click here!

    Tax Help Videos

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

    tax lawyers

    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