Awards & Recognition

The Tax Law Offices of David W. Klasing

Panorama City Tax Lawyers and CPA

The Los Angeles Tax Attorneys, CPAs, and EAs at The Tax Law Offices of David W. Klasing may be able to help if you are facing potential tax trouble in Panorama City or anywhere in Los Angeles. Our Tax Lawyers have decades of experience handling audit defense, advising clients on business or personal taxation, and fighting the IRS on behalf of taxpayers. For a reduced-rate consultation on your case, contact our tax law firm at 800-681-1295 or schedule online today. Our Panorama City Tax Law Office is located on Roscoe Boulevard in downtown Panorama City. Easily accessible from Van Nuys, North Hills, North Ridge, North Hollywood, Burbank, and other Los Angeles neighborhoods in the San Fernando Valley.

The local economy in Panorama City and the San Fernando Valley delivers multiple business and job opportunities, which is an extremely appealing aspect of living and working in this area. However, this can also lead to some complex tax situations that are best handled by our dual-licensed Tax Lawyers and CPAs.

We have extensive experience with all of the California state taxing authorities, including the CDTFA, OAT, BOE, FTB, and EDD. We can also apply the facts surrounding your particular situation to estate taxes, gift taxes, business taxes, and individual taxes. Should you be facing an audit, we are ready to help you fight against civil and criminal assessments of tax, penalties, and interest.

When you begin to prepare to pass on your wealth to heirs, we know how to create a plan that gives you the biggest estate and income tax benefit at both the state and federal levels.

No matter what kind of tax situation you’re facing, contact the Tax Law Offices of David W. Klasing today to schedule an initial reduced rate 10-minute consultation with an experienced Tax Attorney. We provide Panorama City tax services related to state, federal, and international tax and estate situations. Our federal and California state tax audit practice areas include:

Tax Audit Practice Areas

Industry Specific Audits

• Car Dealership Audits
• Dentist Audits
• Veterinarian Audits
• Attorney / Legal Industry Audits
• Doctor’s / Medical Industry Audits
• Real Estate Professional Audits
• Audits of Cash Intensive Businesses (Liquor Stores, Bars, Restaurants, Laundromats)
• Non-Filer Compliance Issues

One of the Best Tax Attorney in Panorama City

The Federal and State (CA) Tax Attorneys at The Tax Law Offices of David W. Klasing represent taxpayers in Panorama City and throughout Los Angeles, Los Angeles County and the San Fernando Valley on a variety of tax law needs. Our Tax Lawyers, CPAs, and EAs are ready, willing, and able to represent you if you are facing a Federal or California Tax Audit or criminal tax investigation. The firm has extensive experience with the following California taxing authorities: California Department of Tax and Fee Administration “CDTFA” and its sister agency, Office of Appeals “OAT”, together formerly known as the “BOE”, Franchise Tax Board “FTB” Employment Development Department “EDD”. We will provide you invaluable assistance with understanding how the veritable sea of Tax, Estate and Gift & Business laws apply to your specific facts and circumstances and how to build and pass on wealth within the bounds of federal and state (CA) law.

For a reduced-rate initial consultation on your Tax, Estate, and Business law needs, contact our Panorama City Tax Lawyers today. The Tax Attorneys, CPAs, and EAs at The Tax Law Offices of David W. Klasing may be able to take your case, fight the IRS on your behalf, and work to keep you clear of criminal and civil tax violations if you need to play defense. We can work with you to reduce your income tax and estate taxes and run your business more profitably when it’s time to play offense.

Panorama City Estate Planning Attorney

Estate planning is a necessary process that only a knowledgeable lawyer can compassionately and effectively handle. Our services include creating tax-efficient estate plans that reflect your goals, assisting with preparing and filing estate tax returns, and offering expert advice on gift tax implications.

Estate planning involves multiple components, which need to be customized depending on the unique set of facts and circumstances underlying your financial situation, such as the size of your estate, the number of heirs involved, and the complexity and location of your domestic and international assets, including whether foreign or offshore bank accounts are involved. Our skilled California Estate Planning attorneys and supporting staff of CPAs and CPA candidates have decades of experience assisting clients with wills, trusts, advanced healthcare directives, and other estate planning and administration matters. We assist in:

International Taxation Lawyers and Voluntary Disclosure Lawyers

The International Tax Attorneys, CPAs and EAs at The Tax Law Offices of David W. Klasing work hard to help businesses and individuals with issues regarding international and off-shore businesses, accounts, holdings and investments. Under foreign laws, these accounts, businesses and investments face foreign taxation. Our core focus is the U.S. Federal and California tax and information requirements and the illumination or minimization of double taxation where income is simultaneously taxed in the U.S. and offshore.

If you have foreign investments, businesses or accounts, our International Tax Attorneys, CPAs in Panorama City and EAs will help you to understand and comply with the myriad of federal income tax and information reporting requirements in order to avoid potentially net worth threatening civil and criminal penalties and to legally minimize worldwide income taxes. If you are already, or may soon become, in serious trouble with the IRS or CA, our International Tax Attorneys may be able to fight the government’s claims, help clear your name and improve your financial situation. Alternatively, if we can get out in front of your federal or California, domestic or offshore income tax or foreign reporting problems we can utilize a full blown Offshore Voluntary Disclosure (OVDP) or streamlined offshore, or domestic, voluntary disclosure to foreclose the risks of a future Federal or CA criminal tax prosecution and to minimize the potential civil penalties and interest that could apply.

Our dual-licensed Panorama City Voluntary Disclosure Attorneys and CPAs offer experienced guidance through the IRS Voluntary Disclosure Practice (VDP). This program is crucial for individuals in Panorama City who have willfully understated their Federal tax liabilities. It provides a systematic and secure avenue to rectify their tax status while avoiding criminal tax prosecution. Similarly, the State of California’s Franchise Tax Board (FTB) and the California Department of Tax and Fee Administration (CDTFA) provide methods for non-compliant taxpayers in Panorama City to regain compliant status by coming forward with the details of their failure to comply with the California state tax code. The path to voluntary disclosure to the FTB depends on whether you are an in-state or out-of-state filer. We are dedicated to assisting in making sincere, comprehensive, and timely disclosures to the IRS and California state tax authorities, which includes arranging for the payment of owed taxes, interest, and penalties and cooperating with the tax agencies to determine the correct tax liability.

In response to recent changes, the new Department of Justice Tax Division’s Voluntary Disclosure Policy encourages entities, including partnerships, government entities, and unincorporated associations in Panorama City, to make voluntary disclosures to the Tax Division, even if they believe the government may already be aware of the misconduct.

Our dual-licensed Panorama City Voluntary Disclosure Attorneys and CPAs skillfully navigate the complexities of various federal and California state voluntary disclosures, including domestic, offshore, CDTFA, and FTB voluntary disclosures, streamlined procedures, and delinquent FBAR and international information return submission procedures. As long as a taxpayer in our around Panorama City who has willfully committed tax avoidance (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the federal tax non-compliance through a domestic or offshore voluntary disclosure before the IRS has started an audit or criminal tax investigation/prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply. We deal with:

Since foreign bank and investment accounts are not subject to the same mandatory 1099 taxable income reporting on items like dividends, interest and capital gains, that U.S. banks and investment firms are, the burden of reporting on foreign bank and investment account balances and investment income falls to the U.S. account holder. If you have foreign accounts, or you have signature authority over such accounts, you may be required to file periodic disclosure documents with the federal government. The most familiar of these documents to the average U.S. Taxpayer and the average tax advisor is the “FBAR,” or Report of Foreign Bank and Financial Accounts. This document tells the U.S. government most of what it needs to know about your foreign account balances under U.S. law. However, the Foreign Account Tax Compliance Act (FATCA) may impose additional disclosure requirements depending on your individual facts and circumstances. IRS forms like Form 8938 may be a required part of your income tax filings to inform the IRS of potential offshore sources of investment income and investment balances. Failing to file required foreign information or reporting offshore sources of taxable income will assuredly set-up a taxpayer for serious civil and criminal tax complications / exposure.

If you’re engaged in international business or managing foreign assets, navigating the complex landscape of global taxation is crucial to success. At the Tax Law Offices of David W. Klasing in Panorama City, our team of dual-licensed International Panorama City Tax Attorneys and CPAs is poised to protect your interests. Addressing compliance oversights is essential, with the IRS escalating its efforts to uncover unreported global investment income, offshore businesses, and financial accounts. Now is the time to enlist experienced legal counsel to review your international tax filing history, ensuring compliance that minimizes additional tax and penalties and avoids criminal tax prosecution. Whether you’re an American expatriate or have multiple offshore business entities and investments, we provide meticulous attention to ensure your international tax dealings are reported with precision and foresight. Our association with Marc Schwartz, a dually licensed International Tax Attorney and CPA, greatly enhances our ability to address the often complex federal offshore tax planning, compliance, and controversial implications surrounding engaging in international business and the associated mandatory information reporting.

Failure to File and Tax Evasion in California

The Federal and California Tax Code requires every U.S. taxpayer to file taxes every year (with certain exceptions). Willful failure to file, or intentional attempts to evade Federal or California Tax can result in Federal or State (CA) criminal tax charges.

Simply forgetting to file or filing your tax returns late, for a single tax year, will not ordinarily result in Federal or California criminal tax charges. However, both the Federal Government and the State of California can criminally prosecute a taxpayer where a multiyear pattern of non-filing exists.

For California purposes, a pattern of non-filing, where taxable income has gone unreported, is in and of itself criminally prosecutable as a felony and is the most commonly prosecuted tax crime in the state. For Federal purposes, each year of non-filing is a misdemeanor punishable by up to one year in jail for each count, (i.e. 5 years of non-filing equals up to 5 years in jail) and may be ramped up to a felony where the pattern of non-filing is accompanied by actions that the IRS views as attempts to conceal the fact that you are not filing your returns as required or that are likely to mislead the government as to your requirement to file taxes in the first place, as Spies Evasion. If you fail to timely file your income taxes, the IRS may eventually create a “substitute for return” (SFR) and the state of California may issue a proposed assessment, based on the sources of income that are reported to them via form’s 1099 and W2 for example and then begin collection action for any deficiency. These assessments typically do not include the credits or deductions you would otherwise be entitled to, even where the Fed and CA knows of them, which ordinarily resulting in a higher tax burden than you would have incurred had you voluntarily filed, along with additional penalties and interest. However, intentional, willful actions aimed at cheating the IRS or the state of California out of taxes is a much more serious matter and is consequently much likelier to result in criminal tax charges. Lastly, late filed returns do not qualify for tax relief in bankruptcy.

If you think you may be charged with a tax crime, or committed serious tax errors you need to correct, talk to a Non-Filer Tax Attorney today. Our Los Angeles tax attorneys can help you deal with IRS agents, file amendments, and straighten out potential tax troubles before you are charged with a crime. In many cases, this kind of proactive representation may be able to avoid criminal tax charges before a criminal tax investigation or criminal tax indictment ever occurs.

Panorama City Audit Defense Lawyers

One of the most beneficial services our firm offers is strategic and aggressive tax audit defense. If you are being audited, or believe that you may be audited, our lawyers can help handle the IRS’ audit process, form agreements with the IRS, and challenge improper IRS decisions. Even if the audit against you is unfounded, the audit process can be long, intrusive, and stressful. Our lawyers stand between our clients and the IRS, helping explain our clients’ tax situations, arguing against IRS sanctions and changes to your tax burden, and appealing inappropriate decisions against you.

How to Appeal the Results of an IRS Tax Audit

Unfortunately, you may find yourself in disagreement with the IRS’ findings at the conclusion of your tax audit. However, you are not necessarily required to accept the initial determination. Depending on your reason or reasons for disagreeing with the audit’s outcome, you may be able to challenge the IRS via the tax audit appeals or litigation process.

To do so, you will be required to prepare a written “protest letter,” or tax court petition which must establish how and why you disagree with the audit’s outcome, while further including any laws and facts which support your argument. Your protest letter must be submitted to the address on the letter explaining your rights to appeal – not to the Office of Appeals itself, which may result in delays or processing issues.

Due to the complicated requirements of the IRS audit appeals process, it is not advisable to handle the matter yourself. Being represented by a skilled and effective Tax Appeals & Litigation Attorney in Panorama City will increase your odds of appealing successfully.

IRS Audit Representation

The IRS is the federal agency tasked with conducting audits on federal income tax returns. These can be your personal tax returns or tax returns related to your business. The IRS sometimes conducts audits completely randomly, but many times audits will be triggered by suspected underreporting of income or overreporting deductions or credits on your return. The typical amount of time the IRS can look back on your records is usually 3 years, but in certain cases they will be allowed to look back 6 years or even more. The audits should be taken seriously because if the IRS discovers any willfully false reporting, civil, and criminal tax penalties may be assessed.

Types of IRS Audits

There are several versions of audits the federal government could choose to conduct. Correspondence audits, office audits, and field audits all differ by how they are conducted and the level of detail that the IRS digs into. Eggshell audits and reverse eggshell audits are not formal audit types but terms of art used to describe specific situations that create exceptional risk or criminal investigation and prosecution in an audit. Identifying which type of audit you are facing will be important because each varies in terms of severity, thoroughness, and expected time frame for resolution. Your Panorama City tax lawyer can identify which type of audit you are dealing with and help you prepare so the issue is resolved as quickly and painlessly as possible.

Correspondence Audit

A correspondence audit, sometimes referred to as a mail audit, is the simplest and least invasive type of audit. For a correspondence audit, an IRS agent will send you a letter asking for certain documents to back up the positions taken on your tax returns. The entire audit will be conducted remotely, with contact between you and your Panorama City tax attorney and the auditor. The process occurs entirely through the mail, over the phone, or by email. Typically, from the time of your first response to the correspondence audit request, you can expect a resolution in your case in three to six months. Our Tax Lawyers and CPAs can help you prepare the necessary documents and work to quickly correct any mistakes you made on your returns.

Office Audit

If you are faced with an office audit, you will be required to bring the requested records and documents to the closest available IRS field office for the agents to review. Additionally, you will be subjected to an in-person interview. You should always be accompanied to this meeting by your Panorama City tax attorney to ensure that you are being treated fairly. If everything goes as planned, office audits typically lead to a decision that comes between three to six months after the date of your office visit.

Field Audit

A field audit is the most serious type of audit and is often reserved for cases where the IRS is considering severe civil or criminal tax penalties, the discrepancy between the taxes reported and the taxable income suspected is substantial, or where complex revenue streams and multiple business entities complicate the financials of the situation. You should contact a Panorama City tax lawyer right away if you find out that the government plans to institute a field audit against you. In the course of a field audit, IRS agents will want to come into your personal residence, place of business, or both, so that they can look through your records themselves. Resolution of a field audit may not come for several months or even years following the date of the visit.

In addition to viewing financial records at your home or place of business, the IRS may interview you or your employees. When an IRS representative interviews the employees of a business, they can gain access to an excessive amounts of potentially incriminating information. Our dual-licensed Tax Attorneys and CPAs can work with businesses to prepare employees for the questions they will be asked and can guide them on how to answer most affectively. It is important that employees fully respond to IRS questions while not providing more information than necessary. If an auditor has any follow-up questions, they can ask them – additional information should not be volunteered. Eager employees may want to help resolve the audit and try to clear up any perceived misunderstandings, but they could give more information than necessary. This risk of excessive information is one of the reasons why a field audit requires careful preparation with the help of an attorney.

Eggshell Audit

An eggshell audit occurs when taxpayers know of a substantial compliance issues with their tax returns that could be indicative of tax fraud, but the IRS is not. Compliance concerns often amplify after the IRS provides an audit notice and the taxpayer is preparing documentation in response to an Information Document Request (IDR). In the course of reviewing the requested documents, the taxpayer realizes that there are material misstatements. Overstated deductions, understated income and claiming credits a taxpayer is not entitled to are the most common types of misstatements that can create criminal tax exposure. Alternatively, the taxpayer may know they took risks with unclear or aggressive tax planning and preparation decisions. Either way, there is information that the taxpayer does not want the IRS representative to find, and if found, does not want the IRS to draw inferences that tax fraud has occurred with the returns under audit, especially if a pattern of similar misstatements exists in the historical client tax compliance pattern.

Moving forward with an eggshell audit using the original preparer as a representative may be tempting while simply trying to avoid disclosure or discovery of the known compliance problems. However, intentional deception bears a higher risk than artfully admitting a mistake and taking steps to remedy it. When an IRS agent conducts an audit, it is ordinarily only a civil audit. However, if the auditor discovers what to them looks to be intentional fraud, they may be required to refer your case for a criminal tax investigation. If they IRS Criminal Investigation division takes up your case, they have a 90% conviction ratio. However, if the compliance issues can be artfully addressed by our dual licensed Tax Attorneys and CPAs within the civil audit, you will have to pay any tax deficiencies and associated penalties, but you will avoid criminal charges.

If you receive an audit notice and realize that it will be an eggshell audit, hiring our dual-licensed Tax Attorneys and CPAs would be prudent, regardless of the severity of the tax issue. Audits can take a turn for the worse very quickly. An attorney can review any IRS requests and responses, interface with the IRS on your behalf, and be present for any audit interviews. Most importantly, an attorney can watch for warning signs that the audit could become a criminal tax investigation. In such a case, the attorney can work with the taxpayer to remedy the issue and persuade the auditor that the issues can be resolved at the civil level.

The best method to address an eggshell audit is to prevent it in the first place. Taxpayers can reduce the risk of tax return misstatements or omissions by securing competent tax preparation services and asking for a second opinion if necessary. If you run a complex business, have foreign assets, or have other circumstances that complicate your taxes, requesting the assistance of dual-licensed Tax Attorneys and CPAs can provide legal advice for thorny tax issues.

Criminal Tax Defense and Reverse Eggshell Audit

Reverse eggshell audits are perhaps the most dangerous types of audits. In such cases, the IRS knows or suspects tax fraud, but the taxpayer is unaware of these suspicions. The IRS representative may continue with a civil audit while collecting evidence of fraud that is later handed over for a criminal tax investigation.

These types of audits are tricky to address. On the one hand, taxpayers must comply with IRS requests and provide any requested information. On the other hand, the taxpayer does not want to provide any self-incriminating evidence. In a criminal tax investigation, taxpayers can freely invoke their right to remain silent. However, in a civil audit, this stance would alert the auditor that there most likely are criminal tax issues in the tax returns under audit.

Since such audits are a delicate balance of responding appropriately without providing too much information, our dual-licensed Tax Attorneys and CPAs are invaluable throughout the audit process. Even if you do not suspect a reverse eggshell audit, an attorney can monitor the audit for any subtle warning signs that indications of fraud have been discovered. Confirming the existence of a reverse eggshell audit as early as possible allows the taxpayer to take a more defensive stance.

There are some blatant signs that a civil audit has turned into a criminal tax investigation. For example, a civil auditor is required to stop their audit when fraud has been discovered. At that point, the auditor may suddenly stop requesting documents or interviews and become suddenly and mysteriously unreachable. Any unexplained halting of a civil audit should be great cause for concern since it may indicate that the IRS is initiating a criminal tax investigation.

More subtle warning signs also occur when the IRS representative only suspects tax fraud. If the auditor believes that they may need to refer the case for criminal tax investigation, eventually, they may begin asking for excessive copies of business documents or start recording audit interviews. These seemingly routine actions may be indications that the auditor is preparing a case file for hand off to the IRS Criminal Investigation Division. Additionally, the focus of audit requests may shift from asking for backup documents or calculations to requesting explanations and inquiring as to why certain decisions were made. Questions that focus on the intent behind tax decisions imply that the auditor suspects tax fraud and wants to determine if it was intentional fraud or mere negligence.

The secretive nature of a reverse eggshell audits is one of its most challenging aspects of dealing with them. A taxpayer cannot defend against a clandestine criminal tax investigation that they are not aware is occurring. Ensuring that your audit occurs under the watchful eye of dual-licensed Tax Attorneys and CPAs can help reduce any surprises and ensure you have a strategic plan to manage potential audit risks.

When facing tax audits from agencies like the IRS, CDTFA, EDD, or FTB, certain red flags, such as destroyed records, underreported income, or unfiled returns, can intensify the examination, leading to such high-risk eggshell and reverse eggshell tax audits. As such, residents and businesses must be aware of potential criminal tax violations and the signs indicating that they might be under a more rigorous investigation by the IRS’s Criminal Investigation Division (CID) or an equivalent state criminal investigation agency. This is especially so when the taxpayer has a history of blatantly cheating on their California or federal tax returns and is now under audit and thus fears criminal tax prosecution. Even international tax evasion schemes that utilize remote tax havens are easily detected by the IRS, which works with international tax and law enforcement agencies around the globe and throughout the United States.

We will help your understanding of the stages of an audit, criminal tax investigation, tax crime indictment, and prosecution, as well as the red flags that may pique the interest of the IRS or the California Franchise Tax Board (FTB), California Department of Tax and Fee Administration (CDTFA) and the Employment Development Department (EDD) and trigger the entire sequence. If you or your small business has been selected for a tax audit in Panorama City or surrounding areas, and you are concerned about a criminal tax investigation resulting from or occurring alongside the audit, engaging our Panorama City Dual Licensed Criminal Defense Attorneys & CPAs services at the onset of a high-risk audit / criminal tax investigation will maximize the possibility of a favorable outcome without escalating to criminal tax charges. We have never had an audit client criminally prosecuted for tax crimes. We are here to provide aggressive, informed representation in areas including:

California Franchise Tax Board (FTB) Audit Representation

In addition to a federal tax return, most citizens of California must file a California income tax return. Audits related to California income tax returns are conducted by the California Franchise Tax Board (FTB). Many times these “audits” will simply piggy-back off audits conducted by the IRS related to your federal returns. The results of these audits will be sent to the FTB and, even if you did not owe money to the federal government, you may still owe money to the state.

The FTB also conducts independent audits related to California-specific tax issues. Such audits should not be treated less seriously than IRS audits just because they are being done by the state. A tax lawyer can help mitigate the damage of underreporting or false reporting and limit potential fallout. If you are found to owe back taxes, a lawyer can negotiate with the FTB to work out a reasonable payment plan and keep you from paying further fines.

California Employment Development Department (EDD) Audit Representation

The California Employment Development Department (EDD) conducts audits related to issues with employment taxes paid by businesses, specifically the state payroll tax. Each business is required to collect payroll taxes from their employees and hold these funds in trust until it is time to remit them to the state. If your business fails to collect or fails to properly remit state payroll taxes, you could face serious penalties from the EDD.

One of the most common issues in an EDD audit is the classification of workers as independent contractors vs. employees. Employers are not required to collect payroll taxes from independent contractors like they are with employees. However, the state has tight and complex restrictions on who can be classified as an independent contractor and looks very poorly on those who try to avoid taxes by misclassifying. A tax lawyer can help you understand who can and cannot be classified as an independent contractor and work to resolve any issues stemming from misclassification by showing that it was unintentional.

California Department of Tax and Fee Administration (CDTFA) Audit Representation

The California Department of Tax and Fee Administration (CDTFA) conducts audits related to state sales tax issues. The state sales tax can be tricky as it can vary sometimes depending on what locality your business is in, what kind of product you are selling, and where the person buying it is located. Certain industries like bars and restaurants where sales tax issues are more common are often subjected to random audits by the CDTFA, or the audit might be triggered by suspicious activity on your returns that makes them think you are failing to charge or to remit proper sales taxes.

These can be some of the most invasive audits as they will often require you to produce documents related to all of your sales, including receipts and ledgers. A skilled tax attorney can help you reconstruct the necessary records and work to prevent serious civil or criminal penalties from being imposed if it is found that you failed to properly remit sales tax revenue to the state.

Recently, the CDTFA issued updated guidance on protocols and procedures for disputing, or “appealing,” CDTFA determinations. Though the CDTFA makes efforts to provide clear instructions for taxpayers, it is not recommended to attempt handling an appeal without professional tax representation. It is in your best interests to consult our experienced Panorama CDTFA Audit Attorneys before filing an appeal or petition for redetermination due to the legal and financial complexity involved. We can help you appeal IRS and California state tax audit decisions involving:

Panorama Audit Appeals and Tax Litigation Attorneys

Administrative or procedural errors more commonly a misinterpretation of the fact or law at issue in your case frequently leads to incorrect outcomes when tax audits conclude. Unfortunately, this can leave a taxpayer facing a costly tax bill, including penalties and interest, for which he or she should not technically be liable where the governmental agency got either the facts or the law wrong. Thankfully, at both the state and federal levels, taxpayers have the right to dispute or “appeal” the results of tax audits. This applies to IRS audits, FTB audits, and all other types of tax audits in California. At the federal level, audit appeals are handled by the IRS’ Office of Appeals, for which the California equivalent is the Office of Tax Appeals (OTA).

To begin the appeals process, the taxpayer must first notify the appropriate agency of the controversy that he or she intends to dispute. This is accomplished through a written collection of documents, called a “protest letter” or, if directed to the OTA, an “opening brief,” containing information such as:

• The taxpayer’s contact information
• The issue the taxpayer wishes to dispute, such as the proposed assessment of additional tax
• The legal and/or factual basis for disputing the audit’s results, such as tax-related statutes or legal precedents

Note that in some cases, it may be possible to avoid appeals by resolving the issue at mediation, which is faster and less formal. Conversely, there are also cases in which the dispute must proceed beyond appeals, going to Federal or California Tax Court for litigation before a judge. Our audit appeals attorneys and tax litigation attorneys are highly experienced in resolving complex tax controversies, and will either aggressively pursue the strategy optimally suited to your case or inform you at the outset that the law and facts are not on your side and recommend other collection type alternatives rather than tax appeals or litigation.

Without the seasoned eye of the dual-licensed Panorama City Tax Litigation Attorneys and CPAs at the Tax Law Offices of David W. Klasing, your tax issues could snowball and result in serious consequences. We are dedicated to providing unparalleled representation in IRS and California state tax disputes. Our seasoned Tax Attorneys and CPAs excel at navigating sensitive (eggshell) audits, ensuring tax compliance, and advising on reporting positions. Our clients benefit from our strategic handling of disputes related to employment tax, estate, and gift tax, cases involving unreported income, and allegations of civil tax fraud. We meticulously assess litigation risks where latent criminal tax issues may exist to secure resolutions as soon as possible, drawing upon our deep understanding of the procedural rules and substantive issues at play. To date, we have never lost in tax court. We won’t take your case if we don’t believe we’ll win. The IRS’s 98% settlement rate is why we’ve never stepped foot in tax court, sparing our clients the most expensive part of tax litigation.

Our skilled tax litigation lawyers have extensive knowledge and experience dealing with various federal and California state tax issues. This incorporates representing clients in disputes involving IRS audits, disputes with the CDTFA, EDD, and FTB, claims for refund, tax collection defense, innocent spouse relief, criminal tax defense, and more. Whether it’s handling cases of criminal tax exposure, guiding you through a civil tax audit, eggshell audit, reverse eggshell audit, or defending against a criminal tax investigation, the expertise of our seasoned dual-licensed Panorama City Tax Litigation Attorney and CPA is invaluable. As an experienced litigator, David W. Klasing can represent you in the Tax Court or before the California Office of Tax Appeals (OTA). Call 800-681-1295or schedule a reduced-rate initial consultation here at our Panorama City office or one of our other convenient locations across Southern California. Our services include representing the client in the following:

Failure to File and Tax Evasion in Panorama City

If you, your husband or wife, or your business has been accused of engaging in tax evasion, especially if this took place in open divorce court, an informant or a whistleblower is involved, it is absolutely imperative that you consult with an experienced tax evasion defense attorney for legal help immediately. Unlike a Certified Public Accountant (CPA), who is primarily equipped to handle financial tax planning and compliance, an attorney or dually licensed criminal defense attorney-CPA is well-versed not only in state and federal tax laws, but also in civil and criminal court procedures, legal precedents, and criminal tax defense including the use of constitutional protections against unreasonable searches and self-incrimination available under federal constitutional law. This enables a stronger, more rigorous defense, improving the odds of a case dismissal, significant civil and criminal penalty reductions, or other favorable outcomes. Additionally, a tax lawyer provides the advantage of the attorney-client privilege, which can be instrumental in defending and building a criminal tax defense or when negotiating with the IRS. Don’t let the tax professional that you turn to for help be forced to turn witnesses against you. Only discuss criminal tax issues with a criminal tax defense attorney. Also, be aware that you have a conflict of interest with the original preparer of the return at issue. Throwing you under the bus will protect their reputation while putting you at extreme risk of criminal tax prosecution.

The Panorama City Tax Evasion Defense Attorneys at the Tax Law Office of David W. Klasing have experience handling most types of potential misdemeanor and felony tax evasion charges, including federal income tax evasion, state income tax evasion, employment tax evasion, sales tax evasion, corporate tax evasion, cryptocurrency and Bitcoin tax evasion, offshore tax evasion, and divorce tax evasion. We can also provide assistance with related tax matters, such as unfiled or delinquent tax returns, undisclosed foreign accounts and related foreign taxable income, and tax preparer liability. For a reduced-rate initial consultation, call our tax offices immediately at (800) 681-1295, or contact the Tax Law Office of David W. Klasing online.

The U.S. is unique in its citizenship-based taxation that imposes stringent tax reporting and disclosure laws, especially for those holding foreign assets. Non-compliance, failing to file or pay taxes, can result in hefty penalties, with a 5% charge on the outstanding tax bill for each month of delay beyond the original tax filing deadline up to a maximum of 25%. Moreover, undisclosed foreign accounts, once considered safe havens, now carry substantial risks due to regulations like FATCA and the Bank Secrecy Act’s FBAR. At the Tax Law Offices of David W. Klasing, our dual-licensed Panorama City Unfiled Tax Return Attorneys and CPAs stand ready to guide you through these complexities. Whether you’re confronting the repercussions of unfiled tax returns or navigating foreign account disclosures, our expertise ensures compliance and the protection/mitigation of potential civil or criminal tax consequences.

• Getting Caught Up on Tax Fillings
• Non-Filer Assistance
• Tax Penalties for Not Filing
• Back Tax Filing Services
• What to do when you Forget to File Taxes
• Tax Settlement Negotiations
• Representation in Non-filer Cases

Struggling with Cryptocurrency Taxation in Panorama City?

In the rapidly evolving world of virtual currencies like Bitcoin and other digital assets, many investors and traders are navigating complex Federal and California state tax implications. Receiving a letter from the IRS about unreported cryptocurrency transactions discovered via John Doe Summons can be alarming. It may lead to a high-risk eggshell audit or even a covert criminal tax investigation if not addressed appropriately. The surprise is often considerable when individuals learn that exchanges of one type of crypto for another are taxable events in the year they occur, even with no fiat currency changing hands, or that the IRS might have obtained their transaction details from sources like Coinbase. The volatile nature of the crypto market, with its significant highs in 2017 followed by subsequent lows, has left many facing substantial tax liabilities, often disproportionate to their current portfolio value.

Our Panorama City Bitcoin and Virtual Currency Tax Attorney & CPA have extensive experience in all tax facets of cryptocurrency, from understanding the nuances of airdrops to addressing challenges faced by individuals whose crypto was held with a brokerage that has since folded. The exposure is even more significant for those who’ve ventured offshore with cryptocurrency. However, there’s a silver lining: taxpayers who’ve intentionally committed tax evasion can often self-report through voluntary disclosure, potentially avoiding criminal tax prosecution and benefiting from reduced civil tax penalties. Whether you’re dealing with Bitcoin, Ethereum, Litecoin, or any other virtual currency, call us today at 800-681-1295 or schedule a reduced-rate initial consultation here, and we will successfully guide you through the record-keeping and reporting procedures required to file a tax return. We will also fight vigorously for those whom the IRS has accused of failure to report and help them stave off more severe civil and criminal tax penalties. Read our story “Tax Fraud is Going Virtual” to know more about virtual tax evasion. For more information, see the following:

Confused About California State Sales Tax Rules in Panorama City?

In Panorama City, businesses that collect sales tax from their customers are entrusted with remitting those taxes back to the California Department of Tax and Fee Administration (CDTFA). Any discrepancies, such as failing to pay collected taxes or having revenue that’s not appropriately taxed, can trigger a California sales tax audit by the CDTFA. Given the significance of sales tax, which accounts for a large percentage of California’s revenue collection, California state sales tax audits are common, especially for businesses in certain high-risk industries. If you find your business selected for a tax audit, it would be wise to remain composed and promptly contact our dual-licensed Panorama City Sales Tax Attorneys & CPAs.

With recent overhauls in sales tax laws, especially after the U.S. Supreme Court’s ruling in Wayfair granting states more power to enforce compliance over online sellers, it would be wise to have our dual-licensed Panorama City Internet Sales Tax Attorney + CPA by your side. From internet sales tax audit representation to small business tax planning and bookkeeping services, we possess the experience to answer your business tax questions and help you achieve your goals. Our expertise spans from understanding the sales tax nexus and differentiating between sales and use tax to assisting with the complexities introduced by internet sales. Trust our Panorama City Sales Tax Audit Attorneys to provide comprehensive sales tax advisory and representation, ensuring your business thrives in Santa Barbara’s complex regulatory environment.

• Sales and Use Tax Audits and Litigation
• Internet Sales Tax
• Common issues encountered during sales tax audit
• Criminal Exposure as a Result of Sales Tax Audits

How Do You Choose a Tax Lawyer in Panorama City & the San Fernando Valley?

The California state and federal tax codes can cause a number of concerns. If you are seeking tax law help, you may have questions about issues that affect your past or upcoming filings, the possibility of an impending audit, or the likelihood of potential civil or criminal tax charges. You may have more than one of these issues in mind, but even if you do not, you may quickly realize that your single tax issue could present a litany of problems.

You deserve legal counsel with experience and knowledge in the realm of tax law. But not just any tax lawyer will do. You would be best served by a legal service that can help you in every aspect of your tax situation. The Tax Law Offices of David W. Klasing have experienced tax law minds that are also Certified Public Accountants (CPAs). By using knowledge from the two disciplines simultaneously, dual-licensed tax attorneys and CPAs bring a circumspect approach to client services that can serve multiple benefits.

Therefore the dual-licensed Panama City tax lawyers and CPAs at the Tax Law Offices of David W. Klasing are uniquely qualified to provide you with seasoned counsel in every area that you might have concerns. Seeking our help eliminates the possibility that you might otherwise need to seek assistance from two or even three different sources. This has the added benefit of streamlining your case and centralizing your tax defense strategy.

You will also want services that are local, regardless of whether your tax issues are state or federal. Panorama City & San Fernando Valley residents can benefit from a productive case assessment. If you are facing an IRS field or office audit, it will be much easier for a local tax lawyer to accompany you to ensure that you are treated fairly throughout the trying ordeal. The Tax Law Offices of David W. Klasing have locations throughout the State of California, and we are ready and able to give your case the care and attention that it deserves.

Common Questions About Panorama City Tax Attorneys and CPAs

What experience do you have in handling tax litigation in the San Fernando Valley courts?

At The Tax Law Offices of David W. Klasing, our dual-licensed Tax Attorneys and CPAs possess deep experience in federal & California tax litigation. We have effectively represented taxpayers in Panorama City and surrounding areas, navigating diverse matters from audit defense to complex IRS disputes. Our grasp of federal and California state tax law, combined with a thorough understanding of the dynamic local economy, facilitates us in proficiently managing your case.

Our local office on Roscoe Boulevard enables us to provide personalized, easily accessible services to our clients, including those residing in Van Nuys, North Hills, North Ridge, North Hollywood, Burbank, and other neighborhoods in the San Fernando Valley. This local presence is especially beneficial during in-person scenarios such as IRS field or office audits.

Our professional relationships with local tax authorities, including the California Department of Tax and Fee Administration, the Office of Appeals, and the Franchise Tax Board, The California Employment Development Department (EDD) further equip us to advocate for your interests effectively. Whether your tax issues are California state or federal, you can count on us for a productive case assessment and skilled representation in the San Fernando Valley courts.

Our team at David W. Klasing combines a comprehensive understanding of the local economy and taxation environment, profound expertise in tax law, and a dedication to client service to manage tax litigation in the San Fernando Valley effectively.

How do Panorama City tax regulations differ from other cities or states?

The tax regulations in Panorama City, California, differ in several ways from other cities and states. The critical difference lies in the sales tax rate and property tax rate.

The combined sales tax rate in Panorama City is 9.50%, which includes the 6.00% California state sales tax, 0.25% Los Angeles County sales tax, and a special tax of 3.25%. This rate is relatively higher than the sales tax rates in many other cities and states. Moreover, there are specific goods and services in Panorama City that are tax-exempt. For instance, while alcohol, tobacco, and gas are subject to excise tax, other goods and benefits might be exempted.

Note: These rates are subject to change as tax regulations are updated regularly. Hence, It’s essential to consult with a qualified Panorama City tax attorney to understand the specific tax regulations that apply to you or your business.

Why do I need a tax attorney in Panorama City?

Given the unique tax landscape, a tax attorney in Panorama City is instrumental. Here, the higher sales tax rate, complexities of state, county, and special taxes, and industry-specific tax regulations such as excise tax for alcohol, tobacco, and gas make tax law understanding intricate. A local tax attorney eases navigation through these complexities, providing tailored guidance.

When tax disputes arise, a tax attorney’s representation in court is invaluable. Our team at The Tax Law Offices of David W. Klasing, with its extensive experience handling tax litigation in the San Fernando Valley courts, has become a strategic asset. With higher tax rates in Panorama City, an attorney aids in designing effective tax planning strategies to minimize liability. International taxation adds another layer of complexity, especially for those with foreign investments, businesses, or accounts. In this case, a tax attorney can help decode the federal income tax and information reporting requirements, ensuring compliance with international tax laws.

Our team’s unique advantage comes from first-hand experience with tax litigation cases and association with top-notch tax defense law firms, whether it’s an offshore asset matter, voluntary disclosure, or IRS audit. Importantly, we’ll only take on your case if we believe pursuing litigation or appeals can benefit your situation.

At The Tax Law Offices of David W. Klasing, we have extensive experience with the California Department of Tax and Fee Administration (CDTFA), Office of Appeals (OAT), Franchise Tax Board (FTB), and Employment Development Department (EDD). We provide an invaluable understanding of tax, estate and gift, and business laws per your circumstances. Partnering with The Tax Law Offices of David W. Klasing ensures proactive planning, compliance, and maximizing opportunities within the tax law framework.

Click on the following to learn more about our Panorama Tax Services:

Panorama City Tax Attorney
Panorama City Tax Litigation Attorney
Panorama City IRS Tax Attorney
Panorama City Tax Evasion Lawyer
Domestic and International Business and Tax Attorney in Panorama City, CA
Bitcoin and Virtual Currency Tax Attorney in Panorama City, CA