Carlsbad, CA Audit Appeals and Litigation Attorney
Audit appeals and tax litigation are complex issues which both demand sophisticated, strategic legal representation. Carlsbad audit appeals and litigation attorney David W. Klasing, founder of the Tax Law Office of David W. Klasing, has more than 20 years of experience practicing tax law in California and beyond, including over a decade of experience as a former public auditor. Mr. Klasing and his diligent team members are prepared to represent you vigorously before the IRS Office of Appeals, the state Office of Tax Appeals, or in federal tax court. Using our unparalleled, comprehensive knowledge of state and federal tax laws, we can work to mitigate your tax liability, restrict penalties and fines to a minimum, and resolve disputes efficiently.
Appealing the Results of an IRS or California EDD, FTB or CDTFA Tax Audit
It is never pleasant to be audited by the Internal Revenue Service (IRS), the Employment Development Department (EDD), the Franchise Tax Board (FTB), or the California Department of Tax and Fee Administration (CDTFA) – especially not when a large amount has been assessed against you. However, you are not necessarily bound to the audit’s initial outcome. If you disagree with the results of the audit, you may be able better your position by filing a written protest or tax court petition, which initiates a process known as “appeals.”
At the federal level, tax appeals are handled by the IRS Office of Appeals. Through the Office of Appeals, approximately 100,000 taxpayers resolve their disputes annually, thus avoiding the need for costly and time-consuming tax litigation. Before the Office of Appeals will hear your case, you must first file a written protest or file a tax court petition.
Like all correspondence with the IRS, written protests must follow strict criteria in order to have a chance of succeeding. Elements that must be featured in your protest include, but are not limited to, the following:
- Your contact information
- A statement indicating your intent to appeal
- The tax years pertinent to the dispute
- A factual, evidence-based explanation of your basis for filing the protest
- Pertinent laws and facts that support your position
Filing a tax court petition is even more exacting yet.
At the state level, appeals are managed by a new organization called the Office of Tax Appeals, which was established by the Taxpayer Transparency and Fairness Act of 2017. Prior to the Act, the Office of Tax Appeals’ role was performed by the California Board of Equalization (BOE). The purpose of the Office of Tax Appeals (OTA) is to “hear appeals from California taxpayers regarding various taxes and fees administered by the California Department of Tax and Fee Administration and the Franchise Tax Board.” This includes appeals related to:
- Corporate franchise tax and income tax
- Excise tax
- Personal income tax
- Sales and use tax
What if I Disagree with the Results of an Appeal?
If the appeals process does not yield a favorable outcome, it may become necessary to litigate the case, either in U.S. Tax Court or before the CDTFA. While tax litigation can be a cumbersome process, it may be necessary to resolve complex issues that exceed the scope or capability of a dispute resolution platform like the Office of Appeals. Generally speaking, tax disputes pertaining to alleged fraud, substantial potential assessments, and corporate tax issues are most likely to lead to litigation.
In order to litigate your tax dispute in U.S. Tax Court, you must file a petition within 90 days of receiving Letter 531 (Notice of Deficiency), colloquially known as the “90-day letter.” If you are residing outside the United States when you receive the Notice of Deficiency, the deadline may be extended from 90 days to 150 days.
Tax deficiency actions are sometimes in the taxpayer’s best interests but are rife with technicalities and potential pitfalls in the absence of highly experienced IRS appeals representation. For example, interest can continue to accrue while your case is pending, which can burden the taxpayer with unforeseen expenses. Only a knowledgeable tax attorney can determine whether litigation serves you efficiently, and if not, develop strategies to resolve the issue through alternative methods.
Carlsbad Audit Appeals and Tax Litigation Lawyer Offering Reduced-Rate Initial Consultations
If you disagree with the results of an IRS, FTB, EDD, or CDTFA tax audit – or if you’re unhappy with the results of the consequent appeal – you have the right to dispute the outcome. However, it is unwise to embark on this process without the guidance of an experienced Carlsbad tax litigation attorney who is qualified to represent you before an appeals officer or in tax court.
Drawing upon decades of experience, the Carlsbad audit and appeals attorneys at the Tax Law Office of David W. Klasing are prepared to handle written protests and tax litigation pertaining to income tax, payroll (FICA) tax, corporate tax, estate and gift tax, property tax, and sales and use tax disputes with state and federal tax authorities. To arrange a reduced-rate initial consultation about how we can help, contact our tax firm online or call the Tax Law Office of David W. Klasing at (760) 338-7035 or (800) 681-1295 today.
Carlsbad Tax Law Offices
For any of your tax planning compliance and controversy needs in Carlsbad, contact the Lawyers at The Tax Law Offices of David W. Klasing today. Our experienced Tax Lawyers offer a reduced-rate consultation on new cases or engagements. Call (760) 338-7035 or 800-681-1295 or contact us online today to schedule a reduce rate initial consultation at our Carlsbad tax law offices, or at one of our other convenient locations across Southern California.