Bakersfield, CA Audit Appeals and Litigation Attorney
Resolving disputes with taxing authorities doesn't always require a courtroom battle. In many situations, the taxpayer and the agency can reach a satisfactory agreement outside of court without litigation. Nevertheless, there are instances when finding a resolution is more complicated, and federal of California tax litigation becomes essential. In such cases, it's crucial to have a representative with a unique combination of tax and accounting expertise combined with experienced litigation skills on your side.
In Bakersfield, California, taxpayers can access various tax courts and agencies for handling federal and California state tax disputes. We can vigorously advocate for your interests for conflicts with the Internal Revenue Service (IRS), such as audits, deficiency notices, or seeking refunds for overpaid taxes. If the dispute proceeds to court, we will viciously litigate for you before the United States Tax Court, the primary federal court specializing in resolving tax controversies between taxpayers and the IRS.
At the California state level, we represent clients before the California Department of Tax and Fee Administration (CDTFA), which handles taxes and fees supporting state programs like transportation, public health, schools, libraries, social services, and natural resources management. We also frequently represent businesses and individuals before the California Franchise Tax Board (FTB), the state agency responsible for collecting California's personal and corporate income tax. If the case moves to litigation, the California Superior Court in Kern County and the California Office of Tax Appeals (OTA) hear state tax disputes in the Bakersfield area.
In addition, we assist clients with issues before the California Employment Development Department (EDD), which administers unemployment and disability insurance programs, collects and audits payroll taxes, and maintains employment records for the state. Our in-depth understanding of how these tax authorities and courts operate enables us to represent your interests in Bakersfield, California, effectively.
No business or individual is eager to be chosen for tax auditing – or to pay the resulting interest, penalties, or tax assessments. Fortunately, California state and federal tax procedures provide platforms for taxpayers to challenge audit outcomes that are incorrect, inappropriate, or overstep the bounds of the law. If you, your spouse, or your business wishes to dispute the results of a tax audit in Bakersfield, CA, the Tax Law Office of David W. Klasing can help. Whether you aim to negotiate a favorable compromise or challenge the tax authority head-on, we can build an effective strategy to fight for your goals while mitigating your losses.
With over 20 years of tax law experience – including more than a decade as a former public auditor – Mr. Klasing and his skilled team of tax attorneys are well-equipped to represent you before an appeals officer or, should the appeals process fail to resolve your tax controversy, to settle the matter through aggressive tax litigation in court. David W. Klasing Esq. CPA M.S.-Tax holds dual California licenses, enabling him to practice simultaneously as an Attorney and a Certified Public Accountant in Taxation, Estate Planning, and Business Law. With an "A" rating from the Better Business Bureau and a 10.0 AVVO rating, Mr. Klasing offers businesses and individuals comprehensive Tax Representation, Planning & Compliance Services, and Criminal Tax Representation. We are licensed to practice before all California State Courts, the United States District Court for the Central District of California, and the United States Tax Court, offering comprehensive representation for clients facing tax disputes in Bakersfield, CA.
Bakersfield, CA Audit Appeals and Litigation Lawyers for Businesses and Individuals
At the Tax Law Office of David W. Klasing, our tax attorneys draw upon diverse professional backgrounds in business accounting, estate planning, and tax law. This wide-ranging expertise allows our award-winning tax team to provide robust, experience-driven representation in various civil and criminal tax cases related to audits, appeals, and litigation.
We have successfully represented numerous individuals, C corporations, S corporations, limited liability companies (LLCs), various types of partnerships, and sole proprietorships. Our Bakersfield audit appeals and litigation attorneys represent taxpayers and business entities who need assistance appealing the outcomes of the following:
- CDTFA audits (California Department of Tax and Fee Administration);
- EDD audits (Employment Development Department);
- Employment tax audits;
- Estate and gift tax audits;
- Excise tax audits;
- FICA/Payroll tax audits;
- Foreign bank account and FBAR audits;
- Foreign Account Tax Compliance Act (FATCA) and international tax issues;
- FTB audits (Franchise Tax Board);
- Income tax audits;
- IRS audits (Internal Revenue Service);
- Correspondence audits;
- Eggshell audits;
- Field audits;
- Office audits;
- Reverse eggshell audits;
- Sales and use tax audits;
- State tax audits;
- Worker classification audits;
- Industry-specific Audits:
- California Income Tax Audits;
- Civil and Criminal tax investigations and litigation;
- Partnership taxation;
- Collection due process disputes;
- Penalty and interest issues.
We also represent taxpayers in tax court, where tax litigation may be necessary to resolve issues not successfully addressed on appeal—our team, led by Mr. David W. Klasing Esq. CPA M.S.-Tax is consistently ranked as one of the top tax law firms in the nation. With numerous awards, rankings, media mentions, and leadership positions in organizations like the OCBA Tax Committee, California Bar Tax Procedure and Litigation Committee, and the American Society of Attorney CPAs, our tax controversy and litigation attorneys are recognized leaders and authorities in the field.
With a long history of wins for clients and a commitment to ethical and honest representation, we can help businesses and taxpayers navigate complex tax litigation processes, including filing tax deficiency actions, tax refund actions, and other types of lawsuits against California state or federal tax authorities. We are dedicated to protecting your interests, ensuring you receive the proper guidance, and aggressively pursuing a favorable resolution in cases involving the IRS, FTB, CDTFA, EDD, and other tax agencies. Our Bakersfield dual-licensed litigation Attorneys and CPAs are well-equipped to help you achieve the best possible outcome in your tax dispute.
What if I Disagree with the Results of an IRS, FTB, CDTFA, or EDD Tax Audit?
The bad news is that an FTB, EDD, CDTFA, or IRS tax audit will likely result in an unwanted outcome for the taxpayer – typically interest, tax assessments, and civil penalties. The good news is that taxpayers have the right to dispute such results, though strict criteria must be met for the taxpayer to prevail. Due to the stringent requirements and complex tax laws surrounding an appeal, it is always in a taxpayer's best interests to consult with a tax attorney before proceeding.
Suppose the issue to be appealed involves a federal tax issue. In that case, the taxpayer should contact the IRS Office of Appeals by filing what's known as a "written protest," "protest letter," or a Tax Court Petition, depending on your case's facts and circumstances. The protest letter or Tax Court Petition serves two primary purposes:
- Summarizing the issues at hand – Law and or Facts in dispute;
- Notifying the IRS of your wish to appeal/litigate the audit's outcome;
It's important to understand that your protest/litigation will not be successful unless facts, legal statutes, or case law thoroughly support your objection. In other words, the IRS will reject complaints based on constitutional arguments, religious beliefs, or personal beliefs. Additionally, your protest letter must meet strict deadlines: it may be filed no later than 30 days after the date indicated on the notice informing you of the right to appeal or within 90 days of the notice of deficiency.
If the issue to be appealed involves a California tax issue, the taxpayer should contact not the IRS but the Office of Tax Appeals (OTA), a California state agency. The OTA, which assumed many former duties of the Board of Equalization (BOE) following the Taxpayer Transparency and Fairness Act of 2017, handles appeals related to FTB and CDTFA decisions – for instance, a state income tax assessment proposed by the FTB. Like IRS appeals procedures, OTA procedures require taxpayers to submit factual explanations supporting their positions, copies of pertinent FTB/CDTFA notices, and relevant financial documents (such as bank statements).
Working with an experienced tax attorney is crucial in navigating the complex procedures and requirements for appealing tax audit outcomes. General litigation firms may provide high-quality representation but lack knowledge of detailed tax law and practice. At the tax law offices of David W Klasing, our dual-licensed Bakersfield Attorneys and CPAs exclusively focus on tax litigation and controversies. Whether you face an offshore asset matter, a voluntary disclosure, an IRS audit, or a dispute with a California state or local taxing authority, we are familiar and experienced with providing the highest caliber tax litigation defense. We handle various tax matters involving financial products, partnership issues, tax accounting, tax credit qualifications, gift and estate taxes, excise taxes, employment taxes, worker classification matters, tax treaty and withholding tax issues, and state and local taxes. Our expertise can significantly increase your chances of success, potentially resulting in reduced tax assessments, penalties, or interest. Act promptly and seek professional assistance to meet the strict deadlines and criteria required for a successful tax appeal.
Resolving Your Tax Dispute in Court
The IRS Office of Appeals manages to resolve approximately 100,000 tax disputes yearly. However, appealing your tax audit's results does not guarantee to resolve the controversy successfully. If the taxpayer does not respond to the 30-day letter or no agreement is reached with the IRS Appeals Office, the taxpayer generally will receive a notice of deficiency, which provides 90 days to file a petition with the U.S. Tax Court.
In some cases – particularly those involving suspected tax fraud, corporate tax issues, or substantial delinquencies – the taxpayer must change their legal strategy, shifting from dispute resolution to aggressive litigation in California state or federal tax court. When taxpayers attempt to resolve their disputes through lawsuits against tax authorities, it is known as "tax litigation." To initiate a case, the taxpayer must petition the appropriate tax court within the 90-day deadline specified in the Notice of Deficiency, also known as the "90-day letter." This crucial period allows the taxpayer to gather evidence, consult with legal counsel, and prepare a comprehensive case for court proceedings. If the taxpayer fails to reply to the 90-day letter, the amount indicated on the deficiency notice will be evaluated, irrespective of whether the proposed alterations were incorrect.
For taxpayers located overseas when they received the notice, the deadline is extended from 90 to 150 days, providing additional time for international taxpayers to navigate the complexities of cross-border tax disputes. We can ensure that you file the appropriate legal documents in a timely fashion with the correct court and will work tirelessly to build a comprehensive case supported by thorough evidence, taking into account the specific deadlines relevant to your situation
In cases where you disagree with the IRS audit findings, you can dispute the deficiency 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. Still, it may not always be the most effective resolution method due to the emotional investment of the auditor and their manager in the audit results, which can lead to unbalanced negotiations. Alternatively, the normal appeals process is initiated by filing a tax court petition, allowing for an independent review of the taxpayer's case by an appeals officer not involved in the initial audit. This officer will evaluate the taxpayer's arguments and evidence, considering the litigation hazards for the IRS.
If the appeals process does not resolve the issue, the taxpayer can engage in a second attempt at settlement with the IRS Chief Counsel's office on the Tax Court steps without incurring the actual costs of in court tax litigation. When filing a lawsuit in Tax Court, the taxpayer must prepare a detailed complaint outlining their legal arguments and supporting evidence as to why the taxpayer should prevail on the law and the facts at issue. The case will progress to appeals, then to the Chief Counsel's office, and ultimately to trial if necessary. During the trial, the taxpayer and their attorney present the arguments and evidence to the judge, who will issue a decision that can be appealed to a higher court if needed.
Bakersfield Tax Law Offices
As a team of dual-licensed Bakersfield tax litigation Attorneys and CPAs led by David Klasing, we specialize in handling tax litigation cases, offering exceptional services tailored to your specific tax dispute needs. With extensive experience in audit representation, criminal tax representation, foreign account and information reporting, non-filer assistance, tax appeals representation, and much more, we're well-prepared to guide you through even the most complex tax litigation scenarios.
Our comprehensive understanding of tax and criminal law and expertise in navigating the intricacies of tax litigation distinguishes us from other tax professionals. Our tax litigation lawyers excel at representing clients in Bakersfield, CA, and beyond throughout all phases of the tax dispute process, including audits, litigation in the U.S. Tax Court, trial courts, and appellate courts. Our expertise extends beyond federal income tax matters, encompassing representation before the California Franchise Tax Board, State Board of Equalization, CDTFA, and Employment Development Department. We carefully strategize to manage audits and achieve successful outcomes, aiming for settlements when possible. However, we are always prepared to vigorously defend your rights in administrative hearings or trials to secure the best possible resolution.
By choosing to work with us, you can trust that we will develop customized strategies to effectively resolve your tax litigation matters, protect your rights, and minimize your losses. Our unwavering commitment to our clients, combined with our unique dual licensing in tax law and accounting, ensures you receive the highest representation and guidance throughout the entire tax litigation process. To seek assistance in settling an unresolved tax controversy, reviewing compliance with California state or federal tax laws, or engaging in effective tax planning for your business or personal finances, contact the experienced tax lawyers at the Tax Law Office of David W. Klasing. Proudly serving taxpayers throughout the Bakersfield, CA region, we offer reduced-rate consultations for new cases and engagements.
There are three ways to contact one of our experienced tax attorneys: call (661) 432-1480 or (800) 681-1295 or contact us online using our simple and confidential submission form. After establishing a relationship, we can schedule you for an appointment at our office in Bakersfield's West Park Community district or meet with you at any of our conveniently located tax offices in Southern California. We do not charge for travel time. Our Bakersfield office is conveniently located at:
4900 California Ave, Bakersfield, CA 93309
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More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse egg shell audit?
- Why is a reverse egg shell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
- Effective tax defense counsels goals in an egg shell audit?
- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an egg shell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
- How IRS decides which tax returns are audited
- What are my appeal options if I disagree with IRS?
- What are my basic taxpayer rights if the IRS audits me?
- Options if I am unable to pay at the conclusion of audit
- What a 30 or 90-Day Letter from the IRS means
- What is involved with appealing disagreements?
- Rights to disagree with IRStaxauditor'sss findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
- How to avoid negative consequences from an IRS interview
- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What ifIdon'ttt respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- Most common audit technique used by taxing authorities
- Don't go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
California Sales Tax Questions and Answers
- Common issues encountered during sales tax audit
- What is a sales tax audit?
- Disagreeing with business audit conclusions
- Timeline to file Petition for Redetermination?
- What should Petition for Redetermination contain?
- Is the appeals conference formal or informal?
- Appeals Division's Decision and Recommendation
- Are a mark-up percentage and a profit margin the same?
- Problems with the mark up audit
- Can State Board of Equalization ignore my business records
- What is a sales tax deficiency determination?
- Business being audited for sales tax. Should I be worried?
- Audit determined fraud to avoid sales and use tax
- Definition of "sale" for California Sales Tax
- What do California sellers need to know about sales tax?
- How do I apply for a sellers permit?
- What are my obligations as a permit holder?
- What is sales tax?
- What is tangible personal property?
- What is a sale?
- What are total gross receipts?
- What is use tax?
- Who is responsible for paying the use tax?
- Who is a retailer engaged in business in California?
- Who is a qualified purchaser?
- Do I need a Certificate of Registration Use tax?
- Do I need a Use Tax Direct Payment Permit?
- What types of sales are exempt from sales tax?
- How are Internet Transactions Taxed?
- How is California sales or use tax determined?
- What is the statewide sales and use tax rate?
- Are there other local and district sales and use taxes?
- Total sales and use tax rate calculation
- How to protect against successor liability in California
- Recourse when issued California sales tax liability notice
- CA Sales Tax liability extend to purchasers/successors?
- Waiting Until Audited to Take Action on Tax Matters
- Sales tax records needed in California
- What are California's sales and use taxes?
- Why does the State of California audit businesses to ensure compliance with sales and use taxes? How does the State determine whether to audit my business?
- The BOE reviews the purchase invoices of my business
Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS's functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn't know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it's minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
- How to defend a client charged with tax evasion
- Is it tax evasion if I didn't file income tax return?
- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
- Government proof I "willfully" failed to pay taxes
- 5 Ways to Respond to Tax Evasion Charges
- Being audited after using a tax professional
- Rules for what an IRS agent can do while investigating me
- How tax preparers, attorneys and accountants are punished
- How the IRS selects tax crime lead for investigation
- How does the IRS prosecute suspected tax crimes?
- Does IRS reward informant leads for suspected tax crimes?
- How the government proves deficiency in a tax evasion case
- Do prior tax crimes factor into new IRS tax convictions?
- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
- What are my rights during an IRS criminal investigation?
- Avoid prosecution for tax crime with voluntary disclosure?
- Defense tactics that make it hard for to prove willfulness
- How a tax attorney can stop your criminal tax case?
- What can you generally tell me about tax crimes?
- Continuing filing requirement with investigation pending
- Federal criminal code crimes that apply to tax issues
- Penalty for making, subscribing, and filing a false return
- CID special agent's report for criminal prosecution
- What is the discovery process in a criminal tax case?
- What the IRS includes in indictment for tax case
- What is the hardest element of a tax crime to prove?
- IRS methods of gathering evidence to prove tax crime
- What does a grand jury do in IRS tax crime prosecution?
- Failure to keep records or supply information
- Failure to make a return, supply information, or pay tax
- What is attempting to evade payment of taxes?
- What is income tax evasion and how is it punished?
- What is attempted income tax evasion?
- What is the crime of failure to pay tax? What is punishment
- Crime of making or subscribing false return or document
- Criminal Investigation Division investigation tactics
- Tax crimes related to employment tax forms and trust funds
- Tactics to defend or mitigate IRS criminal tax charges
- How the IRS generates leads about suspected tax crimes
- What is the crime" evasion of assessment" of tax?
- Specific examples of "attempting" to evade tax assessment
- What is the so-called Spies evasion doctrine?
- Does overstating deductions constitute tax evasion?
- Is it tax evasion if my W-4 contains false statements?
- IRC §7201 attempt to evade vs. common-law crime of attempt
- What are the penalties for Spies tax evasion?
- How government proves a taxpayer attempted tax fraud
- What is a tax that was "due and owing."
- What is evasion of assessment for tax liability?
- Is evasion of assessment different from evasion of payment
- Does the IRS have a dollar threshold for tax fraud?
- What is the IRS burden of proof for tax fraud convictions?
- Are Tax Laws Constitutional?
- What is the source of law that defines tax evasion?
- Does section 7201 create two distinct criminal offenses?
- Does tax evasion definition include partnership LLC
- What if I helped someone else evade taxes?
- Is it illegal to overstate deductions on my tax return?
- Is it illegal to conceal bank accounts from the IRS?
- Do later losses justify prior deductions?
- Common reasons the IRS and DOJ start investigations
- What is the Mens Rea component of tax crimes?
- What is a proffer agreement and what are the risks?
- Why to have an attorney to review a proffer agreement
- Why enter into a proffer agreement?
- Limited use immunity from proffer agreements
- Difference between civil and criminal fraud allegation
Questions About Delinquent Payroll Taxes and Trust Fund Recovery Penalty
- What happens if an employer continues to incur new payroll tax liabilities?
- California Employment Taxes Basics
- How Does the IRS Develop an Employment Tax Fraud Case from the First Indication of Fraud to a Criminal Indictment?
- Can more than one person be considered responsible by IRS
- How unpaid employment tax payments are allocated
- When a corporate officer is considered a responsible party
- Examples of trust fund recovery penalty determinations
- Failing to pay employment taxes after notice is given
- How to determine responsible person for trust fund recovery
- Assessing trust fund recovery penalty and option to appeal
- What is the trust fund recovery penalty?
- What are the penalties for failure to pay employment taxes
- When am I considered liable for company's employment taxes