Carlsbad Employment, Payroll, and Business Tax Services

Employers, business owners, stakeholders, board members, and others have special tax obligations under state and federal tax laws. For example, employers in Carlsbad are generally required to withhold and remit payroll taxes, namely Social Security and Medicare taxes, or be subject to, at best, trust fund recovery penalties and potentially, at worst, criminal tax prosecution where employment taxes are found by the IRS or FTB / EDD to have been willfully evaded.

In addition to the myriad (and often confusing) tax requirements to which business owners and business entities are subject, entrepreneurs must also consider the tax ramifications of each and every business decision throughout the life of the entity, beginning with strategic entity selection before the company is even launched. At the Tax Law Office of David W. Klasing, we possess the cutting-edge, up-to-date tax knowledge you need to make the most of every opportunity, including updates to the Tax Code under the Tax Cuts and Jobs Act (TCJA) enacted December 2017. For assistance with all your business and employment tax issues, speak with our:

• Business Succession Planning Lawyers
• Business Tax Lawyers
• Business Transaction Lawyers
• Employment Tax Lawyers

Carlsbad IRS, FTB, CDTFA (BOE) and EDD Tax Audit Representation

“Tax audit” may be one of the most dreaded phrases in the English language. However, with a skilled and aggressive California and IRS tax audit attorney negotiating and advocating on your behalf, there is no need to approach the process from a position of fear or anxiety. Not only have we helped thousands of taxpayers emerge from examination with considerably reduced penalties, interest, or other tax liabilities – in addition, our IRS audit and appeals lawyers have also represented countless taxpayers in all stages of the appellate or “protest” process, which is the process of challenging an audit outcome with which you disagree. We stand ready willing and able to litigate any tax issue where the law and facts are squarely on your side, but we have a track record of advantageously settling all our extensive Tax Litigation to date, prior to our clients having to incur the astronomical costs of a trial.

The IRS routinely conducts audits on individual, business, trust, estate and offshore federal information and tax returns. Many IRS audits are conducted at random, but the vast majority are conducted because a computerized statistical review of your tax returns triggered an audit. Issues that may trigger an audit include suspicion of underpaid taxes, suspicion of underreporting of assets and income, and suspicion that you are claiming excess exemptions, credits or deductions for which you do not actually qualify. While a typical IRS audit can look back over 3 years of your tax returns and related documents, sometimes the IRS will be permitted to look back 6 years or even back to the dawn of time.

Types of IRS, FTB, EDD & CDTFA Audits

When you receive your notice letter indicating the California or Federal government’s plans to audit you or your small to middle market business, you will discover which type of audit the IRS, FTB, EDD or CDTFA will use. There are three basic types of audits: correspondence audits, office audits, and field audits. Each is conducted differently and comes with varying implications of severity.

Correspondence Audits

Correspondence audits, or “mail audits,” occur remotely, making them the least invasive form of government tax inquiry. You will receive a letter from the IRS, FTB, EDD or CDTFA asking you to provide information such as financial records and documents to substantiate the positions taken on your tax returns You then send this information to the agents through a mix of traditional mail, e-mail, fax, and telephone communication. A tax lawyer can help you organize or even reconstruct your records and can work to correct any mistakes made on the original returns in a manner that keeps the audit about money and not about potential jail time. If resolved appropriately, correspondence audits usually last no longer than three to six months.

Office Audits

An office audit is different from a correspondence audit in that the letter you receive will ask you to bring the requested documents and records into an IRS, FTB, EDD or CDTFA office for review. You will also likely be interviewed by IRS agents, which can be trying and stressful without the presence of legal counsel. You should consult with a dual licensed Tax Attorney & CPA who can help you prepare and accompany you to this meeting, or better yet, appear on your behalf, where they will be able to use their experience to make your case. Similar to correspondence audits, office audits usually conclude within three to six months of your visit date.

Field Audits

A field audit is the by far the most serious type of audit and is often reserved for cases where serious civil and even potential criminal tax charges are possibly being considered. In a field audit, the agents will come to your home or place of work to review your records in person. They will often attempt to reconcile your perceived standard of living against your return filing pattern. Field audits are particularly common in situations where multiple business entities complicate the government’s assessment. These processes may last over a year. To minimize the damage and get your case resolved as soon as possible, you should contact a tax lawyer as soon as you learn of the government’s plans to institute a field audit against you.