Tax Law Offices
  • HOME
  • ABOUT US
    • Our Attorneys
      • David W. Klasing – Esq., CPA M.S. Tax
      • John A. Harbin – J.D. CPA
      • Marc Schwartz – J.D. CPA
      • Alton Moore – Esq., CPA
    • Our Team
      • Ann Klasing
      • Suzanne Daley
      • Steven Cometa
      • Colleen McCormick
      • Daphne McCloskey
      • Robert Collins
      • Alexandra Vasquez
      • Matthew Korn
      • Vanessa Vasquez
      • Ankit Arora
      • Monica Hanna
      • Susan Clay
    • Careers
    • Speeches and Press
    • Testimonials
  • LOCATIONS
    • Northern California Locations
      • San Francisco Tax Attorney
      • San Jose Tax Attorney
      • Oakland Tax Attorney
      • Sacramento Tax Attorney
    • Southern California Locations
      • Irvine Tax Attorney
      • Bakersfield, CA Tax Attorney
      • Los Angeles Tax Attorney
      • San Bernardino Tax Attorney
      • Santa Barbara Tax Attorney
      • Panorama City Tax Attorney
      • Oxnard Tax Attorney
      • San Diego Tax Attorney
      • Carlsbad Tax Attorney
  • TAX ATTORNEY REPRESENTATION
    • Divorce Tax Issues
      • Tax Evasion and Divorce
    • Tax Attorney
      • Bitcoin Tax Attorney
      • California Tax Attorney
        • California Voluntary Disclosure Program
        • FTB Tax Audit Lawyer
    • Tax Litigation
    • Business Tax
      • Business Succession Planning
      • Business Transaction Lawyer
      • Entity Selection
      • California Sales Tax
      • Employment Tax
      • Tax Services for Clergy
      • Tax Havens For Companies
      • Online Businesses
  • INTERNATIONAL TAX
    • FBAR (Foreign Bank Account Reporting)
      • FBAR Audit
      • FBAR Filing Requirements
      • How to File FBAR
      • FBAR Instructions
      • FBAR Penalties
      • FBAR Reporting
      • International FBAR Lawyer
    • International Estate Planning
    • Tax for Expats
      • Australia
      • Ecuador
      • Hong Kong
      • Luxembourg
      • Mexico
      • Philippines
      • Saudi Arabia
      • Singapore
      • Switzerland
      • U.K.
    • Offshore Voluntary Disclosure Initiative (OVDI)
      • How to File OVDI
      • OVDI Compliance
    • Offshore Voluntary Disclosure Program (OVDP)
      • FATCA and Undisclosed Accounts
      • How to Participate in 2014 OVDP
      • OVDP Representation
      • Quiet vs. Loud Disclosures
    • Streamlined Disclosure
    • Domestic Streamlined Disclosure
    • TAX for NON-RESIDENTS
      • Tax Planning for Foreign Companies
  • TAX AUDIT
    • IRS Tax Audit Guides for Business Owners
      • Aerospace Company Tax Audit
      • Architects Tax Audits
      • Car Dealership Tax Audit
      • Construction Company Tax Audit
      • Dentist Tax Audits
      • Entertainment Industry Tax Audits
      • Real Estate Tax Audits
      • Veterinary Tax Audit
    • IRS Tax Audit Guides for the Self-Employed
      • Artist Tax Audit
      • Business Consultant Audit
      • Childcare Providers Tax Audit
    • Other IRS Tax Audit Guides
      • Passive Income Individuals Tax Audit
    • California and Federal Employment Tax Audits
    • Foreign Account Tax Audits
    • How to Survive a Tax Audit
    • IRS Appeals Representation
    • IRS Tax Audit
      • IRS Tax Audit Basics
      • IRS Tax Audit Help
      • IRS and State Audits
    • Tax Audit on a Cash Intensive Business
    • Worker Classification Audit
  • TAX DEFENSE
    • Hobby Business and Taxes
    • IRS Investigation
      • IRS Criminal Investigation Process
    • Tax Evasion
      • Tax Evasion Lawyer
      • Tax Avoidance vs. Tax Evasion
      • Tax Penalties for Not Filing
    • Failure to File
      • Getting Caught Up on Tax Filings
      • Non-Filer Assistance
      • What to do when you Forget to File Taxes
    • Tax Preparer Liability
      • Criminal Tax Exposure for CPAs
      • Tax Preparer Fraud
    • Voluntary Disclosure
  • TAX PLANNING
    • Awards and Settlements
    • Bookkeeping & Accounting Services
    • Tax Compliance Attorney + CPA
    • Estate Planning
      • Estate Administration Lawyer
      • Wills and Trusts
    • Tax Planning for Non-Citizens
    • Tax Preparation
    • Tax Research
    • Tax Transactions
  • TAX RELIEF
    • Bankruptcy
    • Innocent Spouse Relief
    • Offer In Compromise
    • Tax Liens, Levys & Garnishments
      • California and IRS Tax Garnishment
      • IRS Tax Levy
    • Tax Motivated Bankruptcy
  • TAX LAW BLOG
  • TAX LAW LIBRARY
  • CONTACT US
Call Us Now
800-681-1295
Search Our Tax Law Library
  • Schedule An Appointment
  • Learn More
  • All Locations
AVVO Rating Award Badge
AVVO Rating

BBB Rating: A+

BBB Rating
View Client Testimonials
       Call Now: 800-681-1295



Los Angeles California State Tax Return Audit Attorney + CPA

242
SHARES
ShareTweet
Stay Informed

Los Angeles California State Tax Return Audit Attorney + CPA

Los Angeles California State Tax Return Audit Attorney + CPA

Most residents of Los Angeles are required to file a state tax return, also known as Form 540 (California Resident Income Tax Return). You must generally file a California tax return if you are a state resident, a non-resident with California source income, or a part-year resident with certain types of California income. If you failed to file a state income tax return, made errors on the return that you filed, or failed to provide all of the necessary information, you are at high risk of being audited by the California Franchise Tax Board (FTB), which assesses state income tax and enforces compliance with California’s tax regulations.

If you have been chosen for an FTB tax audit, you are at risk of incurring costly tax assessments, interest, and penalties. It is critical to ensure that you are thoroughly prepared. At the Tax Law Office of David W. Klasing, we are Los Angeles state tax return audit lawyers with more than 20 years of experience representing individuals and businesses in FTB audits and appeals. Our tax firm’s founder, dually certified attorney-CPA David W. Klasing, spent over 10 years practicing as a public auditor, giving our team invaluable insights into FTB procedures, regulations, and auditing strategies. We put our knowledge to work protecting your best interests at every stage of the process. For a reduced-rate consultation regarding a California tax audit, contact the Tax Law Office of David W. Klasing online, or call our Los Angeles tax office at (310) 492-5583 today.

Why Was I Chosen for a Tax Return Audit by the Franchise Tax Board (FTB)?

The Franchise Tax Board reported auditing “approximately 232,000 tax returns, which accounted for $1.63 billion in net assessments and denied refund claims,” during the period from 2016 to 2017. Audits are conducted by five separate divisions of the FTB, but for many taxpayers, the most pertinent is the FTB’s Individual & Pass Through Entity Audit Bureau, which is responsible for auditing both individual taxpayers and flow-through entities, such as LLCs, trusts and estates, and S corporations.

There are various reasons a taxpayer or business may be chosen by the Franchise Tax Board for a tax audit. While some taxpayers are chosen at random by computer software, most FTB audits are initiated because the FTB has detected an issue. Common triggers for FTB state income tax audits include, but are not limited to, the following:

  • Attempting to claim credits that are no longer valid, or for which the taxpayer does not qualify
  • Failing to file Forms 540, especially if there are multiple failures to file
  • Failing to pay California income taxes
  • Underreporting California source income

How Long Can the FTB Audit Your California Tax Return?

It is critically important for Los Angeles residents and other California taxpayers to understand that the Franchise Tax Board is not bound to the same statutes of limitations that restrict the Internal Revenue Service when conducting audits. The IRS is generally limited to an auditing period of three years, with some exceptions where the statute of limitations extends to six years. There are only a few scenarios in which the IRS has unlimited time to conduct an audit, such as a case where the taxpayer has failed to file a tax return or has filed a fraudulent return.

By comparison, the FTB has four years – not three – in which to conduct a California tax audit. The four-year period begins counting down from the date on which the taxpayer filed his or her state return. Like the IRS, the FTB also has no time limit to audit a taxpayer in situations where the taxpayer has failed to file a California income tax return, or where the taxpayer has filed a false state return.

Can You Appeal the Results of an FTB Tax Audit?

If you disagree with the results of an audit of your California tax return, it may be possible to dispute the FTB’s findings, which is a process known as “appealing.” Taxpayers may appeal FTB decisions to the California Office of Tax Appeals (OTA), a relatively new agency which was established by the Taxpayer Transparency and Fairness Act of 2017. Los Angeles residents should be advised that the OTA – no longer the California Board of Equalization (BOE) – now oversees all appellate procedures related to state tax return audits.

There are strict time limits for appealing an FTB decision following an audit of your California tax return. Your appeal must be filed no later than your personalized “appeal by” date, which will be printed on the notice you received from the FTB concerning its decision. You will need to include specific materials in order to have a chance of appealing successfully, namely (1) your contact information, (2) a copy of the FTB notice you received, (3) a written explanation outlining the FTB’s findings and why you believe they are improper, and (4) factual and financial documentation to support your argument.

Map

right

Description

California State Tax Return Audit Lawyers and CPAs Serving Los Angeles

At the Tax Law Office of David W. Klasing, our California tax return audit attorneys and CPAs have been providing state audit and appeals representation to Los Angeles residents for more than 20 years. Our nationally recognized, award-winning tax team is dedicated to protecting the rights of California taxpayers while helping our clients reenter compliance with state tax laws and filing requirements.

Whether you have just been notified of your selection for an FTB audit of your California returns, or your audit recently concluded, and you now wish to dispute its outcome, our Los Angeles FTB lawyers are here to provide the audit defense you need. For a reduced-rate consultation, call our Los Angeles tax office at (310) 492-5583, or contact the Tax Law Office of David W. Klasing online.

Los Angeles California State Tax Return Audit Attorney + CPA was last modified: November 6th, 2019 by David Klasing

Los Angeles California State Tax Return Audit Attorney + CPA

Most residents of Los Angeles are required to file a state tax return, also known as Form 540 (California Resident Income Tax Return). You must generally file a California tax return if you are a state resident, a non-resident with California source income, or a part-year resident with certain types of California income. If you failed to file a state income tax return, made errors on the return that you filed, or failed to provide all of the necessary information, you are at high risk of being audited by the California Franchise Tax Board (FTB), which assesses state income tax and enforces compliance with California’s tax regulations.

If you have been chosen for an FTB tax audit, you are at risk of incurring costly tax assessments, interest, and penalties. It is critical to ensure that you are thoroughly prepared. At the Tax Law Office of David W. Klasing, we are Los Angeles state tax return audit lawyers with more than 20 years of experience representing individuals and businesses in FTB audits and appeals. Our tax firm’s founder, dually certified attorney-CPA David W. Klasing, spent over 10 years practicing as a public auditor, giving our team invaluable insights into FTB procedures, regulations, and auditing strategies. We put our knowledge to work protecting your best interests at every stage of the process. For a reduced-rate consultation regarding a California tax audit, contact the Tax Law Office of David W. Klasing online, or call our Los Angeles tax office at (310) 492-5583 today.

Why Was I Chosen for a Tax Return Audit by the Franchise Tax Board (FTB)?

The Franchise Tax Board reported auditing “approximately 232,000 tax returns, which accounted for $1.63 billion in net assessments and denied refund claims,” during the period from 2016 to 2017. Audits are conducted by five separate divisions of the FTB, but for many taxpayers, the most pertinent is the FTB’s Individual & Pass Through Entity Audit Bureau, which is responsible for auditing both individual taxpayers and flow-through entities, such as LLCs, trusts and estates, and S corporations.

There are various reasons a taxpayer or business may be chosen by the Franchise Tax Board for a tax audit. While some taxpayers are chosen at random by computer software, most FTB audits are initiated because the FTB has detected an issue. Common triggers for FTB state income tax audits include, but are not limited to, the following:

  • Attempting to claim credits that are no longer valid, or for which the taxpayer does not qualify
  • Failing to file Forms 540, especially if there are multiple failures to file
  • Failing to pay California income taxes
  • Underreporting California source income

How Long Can the FTB Audit Your California Tax Return?

It is critically important for Los Angeles residents and other California taxpayers to understand that the Franchise Tax Board is not bound to the same statutes of limitations that restrict the Internal Revenue Service when conducting audits. The IRS is generally limited to an auditing period of three years, with some exceptions where the statute of limitations extends to six years. There are only a few scenarios in which the IRS has unlimited time to conduct an audit, such as a case where the taxpayer has failed to file a tax return or has filed a fraudulent return.

By comparison, the FTB has four years – not three – in which to conduct a California tax audit. The four-year period begins counting down from the date on which the taxpayer filed his or her state return. Like the IRS, the FTB also has no time limit to audit a taxpayer in situations where the taxpayer has failed to file a California income tax return, or where the taxpayer has filed a false state return.

Can You Appeal the Results of an FTB Tax Audit?

If you disagree with the results of an audit of your California tax return, it may be possible to dispute the FTB’s findings, which is a process known as “appealing.” Taxpayers may appeal FTB decisions to the California Office of Tax Appeals (OTA), a relatively new agency which was established by the Taxpayer Transparency and Fairness Act of 2017. Los Angeles residents should be advised that the OTA – no longer the California Board of Equalization (BOE) – now oversees all appellate procedures related to state tax return audits.

There are strict time limits for appealing an FTB decision following an audit of your California tax return. Your appeal must be filed no later than your personalized “appeal by” date, which will be printed on the notice you received from the FTB concerning its decision. You will need to include specific materials in order to have a chance of appealing successfully, namely (1) your contact information, (2) a copy of the FTB notice you received, (3) a written explanation outlining the FTB’s findings and why you believe they are improper, and (4) factual and financial documentation to support your argument.

 
 
 

California State Tax Return Audit Lawyers and CPAs Serving Los Angeles

At the Tax Law Office of David W. Klasing, our California tax return audit attorneys and CPAs have been providing state audit and appeals representation to Los Angeles residents for more than 20 years. Our nationally recognized, award-winning tax team is dedicated to protecting the rights of California taxpayers while helping our clients reenter compliance with state tax laws and filing requirements.

Whether you have just been notified of your selection for an FTB audit of your California returns, or your audit recently concluded, and you now wish to dispute its outcome, our Los Angeles FTB lawyers are here to provide the audit defense you need. For a reduced-rate consultation, call our Los Angeles tax office at (310) 492-5583, or contact the Tax Law Office of David W. Klasing online.

What You Need to Know

About Attorney Client Privilege


SCHEDULE A CONSULTATION


Recent Posts

  • New IRS Report Reveals 2019 Tax Crime Investigation Statistics December 11, 2019
  • Small Business Owner? You May Be Subject to California Income Tax – Even if You Live in Another State December 10, 2019

Testimonials

I spoke with Mr. Klasing who provided me with excellent tax advise, I’m just sorry I didn’t call on him sooner. He was very helpful and genuinely honest in his consultation with me. If ever I need an …
Read More...
When we received the examination letter from the IRS it was first denial quickly overcome by anxiety and trepidation. It was clear for us that getting expert help in navigating through unknown territo…
Read More...
I would like to thank you for your expert consultation on our international estate tax questions. After dealing with a few lawyers who were more interested in their own agenda and personal gain than w…
Read More...
David gave me honest feedback, and helpful direction regarding an appeal of an EDD audit. He understood the level of challenge related to my case, as well it’s importance to me, and responded in a pro…
Read More...

Reviews

Lawyer David Klasing | Top Attorney Tax
Lawyer David Klasing | Top Attorney Tax
Main office: Orange County / Irvine • 2603 Main St. Ste 1180 Irvine, CA 92614 • (949) 681-3502

Appointment Only Satellite Offices: Los Angeles • 10940 Wilshire Blvd. Ste 1600 Los Angeles, CA 90024 • (310) 492-5583 | San Bernardino • 473 E. Carnegie Drive, Suite 200, San Bernardino, CA 92408 • 909-991-7557 | Santa Barbara • 7 W. Figueroa Street, Suites 200 & 300, Santa Barbara, CA 93101 • 805-200-4053 | Panorama City • 14500 Roscoe Blvd, 4th Floor, Panorama City, CA 91402 • 818-935-6098 | Oxnard • 1000 Town Center Dr. Ste. 300, Oxnard, CA 93036 • 805-617-4566 | Carlsbad • 701 Palomar Airport Road, Suite 300, Carlsbad, California, 92011• 760 338-7035 | San Diego • 501 W Broadway, Suite 800, San Diego, California, 92101 • 619 780-2538 | Bakersfield • 4900 California Avenue, Tower B, 2nd Floor, Bakersfield, California, 93309 • 661 432-1480 | San Jose • 2033 Gateway Place, 5th Floor, San Jose, California, 95110 • 408 643-0573 | San Francisco • 1390 Market Street, Suite 200, San Francisco, California, 94102 • 415 287-6568 | Oakland • 505 14th Street, Suite 900, Oakland, California, 94612 • 510 764-1020 | Sacramento • 180 Promenade Circle, Suite 300, Sacramento, California, 95834 • 916 290-6625 See our Contact Us Page for our *POLICY ON SCHEDULING A MEETING AT ONE OF OUR APPOINTMENT ONLY SATELLITE LOCATIONS

ALL MAIL MUST BE SENT TO THE ORANGE COUNTY OFFICE. 2603 Main St. #1180, Irvine, CA 92614.

© 2019 Tax Law Offices of David W. Klasing. All Rights Reserved.
Sitemap | Privacy Policy