Los Angeles Dually Licensed Tax Attorney & CPA for Artists
The Tax Law Office of David W. Klasing is a full-service, award-winning California tax firm providing an array of individual and business tax services to artists in Los Angeles. Our skilled team of tax professionals, which includes business tax attorneys, criminal tax defense attorneys, and tax audit lawyers for artists, can deliver state, federal, or international tax services targeted to your needs.
We represent a wide range of professional artists, including but not limited to visual artists, graphic artists, digital artists, musicians, dancers, fashion designers, and many others. We can help you take the necessary steps to achieve tax compliance, enabling you to minimize or avoid tax penalties while engaging in sound financial tax planning for your gallery or studio. From IRS audit and appeals representation, to business bookkeeping and accounting services, artists throughout the L.A. region trust the Tax Law Office of David W. Klasing to deliver savvy, strategic advice built on more than 20 years of experience.
What Penalties Could I Face as the Result of a California or IRS Tax Audit?
It is important to take a California or IRS audit notice seriously, as any audit has the potential to result in costly penalties. As an audit may reveal, you could unknowingly owe substantial sales, employment, or income taxes to the IRS and/or to the state of California – even if you currently reside in another state or country. If so, you may also owe a considerable amount of interest, and furthermore, may be assessed civil penalties. For instance, an audit may reveal that you owe late filing penalties, failure-to-pay penalties, accuracy-related penalties, and/or negligence penalties.
Even more serious is an audit that reveals “badges” (indicators) of tax fraud. If an auditor finds signs that you acted willfully to avoid paying your tax liabilities – for instance, if you kept multiple sets of books, or omitted certain sources of income from your tax returns – he or she could refer your case to the IRS Criminal Investigation (IRS-CI) division, which may lead to prosecution by the Department of Justice (DOJ) for tax evasion or related tax crimes. If you are prosecuted for a misdemeanor or felony tax offense, such as felony tax evasion under 26 U.S. Code § 7201, you could face jail time, criminal fines, restitution, supervised release, and/or probation in addition to civil penalties, such as civil fraud penalties.
See our Audit Representation Q and A Library
IRS + State Tax Audit Representation for Artists in L.A. (FTB, CDTFA, EDD)
For all of the aforementioned reasons, you should take every possible measure to prepare for and protect yourself during an audit, even if you believe you did nothing wrong. At the Tax Law Office of David W. Klasing, we are seasoned veterans in the area of federal and state tax audit representation. We draw upon more than a decade of public auditing experience, in addition to our many years of legal and accounting experience, to deliver effective counsel and representation aimed at penalty mitigation. We know your rights during an audit and are here to uphold them zealously, negotiating tirelessly to protect your best interests. Serving Greater Los Angeles, our office assists artists with all types of tax audits, including the following:
State + Federal Tax Audit Appeals Representation for Artists in Los Angeles, CA
If you disagree with the results of your tax audit and believe that the auditor made some sort of error, you can dispute the findings by requesting an Appeals conference from the IRS. The California Office of Tax Appeals (OTA) provides a similar service, enabling taxpayers to dispute the outcomes of audits performed by the Franchise Tax Board (FTB) or California Department of Tax and Fee Administration (CDTFA). Our office represents taxpayers in state and federal tax appeals, in addition to providing tax litigation support. You can learn more about how the audit and litigation cycle works here.
Los Angeles Tax Lawyer & CPA for Artists
Artists face complex tax regulations that can make compliance difficult, potentially leading to mistakes that trigger an audit. For example, how do you know when the IRS designates your art as a “hobby” versus a “business,” and what are the tax consequences of that distinction? Are you responsible for reporting sales tax on commissioned art? Do you have to report income from craft shows, or pay a tax on selling paintings online? Would it benefit you to start a business for selling your art, such as an LLC? Are art supplies tax deductible? And are artist grants to individuals taxable?
See our Entity Selection Q and A Library
See our Business Purchases and Sales Q and A Library
See our Business Succession Q and A Library
See our International Tax Q and A Library
The Tax Law Office of David W. Klasing acts as a trusted tax guide for artists, making it easier to find clear answers to these and other questions. If you need assistance with a tax audit, a criminal investigation, or a business tax issue, contact us online right away, or call our Los Angeles office at (310) 492-5583. You can also reach us by calling our main office in Irvine at (800) 681-1295. Please note meetings at our Los Angeles location must be scheduled in advance.
Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship. With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.
Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company? Absolutely not! See our policies that address this issue here