180 Promenade Cir #300, Sacramento, CA 95834
Sacramento Tax Law Offices
For any of your tax planning compliance and controversy needs in Sacramento, 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 (916) 290-6625 or 800-681-1295 or contact us online today to schedule a reduce rate initial consultation at our Sacramento tax law offices, or at one of our other convenient locations across Southern California.
180 Promenade Cir #300 Sacramento, CA 95834
Dual-Licensed Sacramento Tax Attorney and CPA
Those living in Sacramento may have unique employment and business opportunities, as businesses in the state capital of California often have multiple national and international opportunities.
Understanding exactly how to proceed at tax time when you have income from multiple sources can be a source of confusion. If you have a foreign source of income, for example, you are required to report certain information to the IRS under U.S. federal laws. Not ever tax advisor understands how these laws work.
If you are facing a sophisticated tax situation and you are unsure how to proceed, you may want to hire a Tax Attorney, a CPA, or a dually licensed Attorney-CPA, all of which are available to you via our team.
We have the ability to provide tax help to businesses, employees in most professions, investors, high net worth individuals, expatriates, individual taxpayers, and others. No matter what kind of Sacramento tax services you require, contact the Tax Law Offices of David W. Klasing today to schedule a 10-minute reduced-rate consultation with an experienced Tax Attorney. We are ready to help.
One of The Best Tax Attorneys in Sacramento
The Tax Law Office of David W. Klasing has earned nationwide recognition for consistently delivering an unparalleled level of representation in a broad spectrum of tax issues affecting businesses, property owners, expatriates, investors, cryptocurrency miners, high net worth individuals (HNWIs), and other taxpayers throughout California. With offices conveniently located in Sacramento to serve taxpayers throughout the region, our diligent, award-winning team of tax professionals includes tax attorneys, CPAs, dually licensed attorney-CPAs for the full range of legal and financial tax planning, tax preparation, Federal and California civil audit / criminal tax investigation defense services.
Why Should You Use a Dual Licensed Tax Attorney and CPA in Sacramento?
Recent government action suggests that IRS audits will occur more frequently and go further in-depth than ever before. This aggravation is based on the ever-widening tax gap, or the difference between total tax revenue owed and total taxes paid annually. The IRS is concentrated on changing this narrative. While the renewed charge to investigate and prosecute tax evasion will almost assuredly lead to the discovery of more tax cheats, it will also likely entangle honest taxpayers who made simple mistakes in the process.
Simple mistakes can quickly snowball into major issues when it comes to taxes. The best way to head off these problems early is to seek the counsel of a dual-licensed Tax Attorney and CPA. Your dual licensed Tax Lawyer & CPA can help you assess your past and upcoming filings for any potential issues. If you do have any history of noncompliance, your dual licensed Tax Lawyer & CPA may be able to help you reduce or avoid civil and criminal penalties by engaging in the IRS Voluntary Disclosure Program. However, to avoid doing any additional harm, you should never attempt to voluntarily disclose past noncompliance without first seeking advice from the Tax Law Offices of David W. Klasing.
If you are already facing a civil audit, eggshell audit, reverse eggshell audit or a criminal tax investigation, it is imperative to get legal help if you haven’t done so already. No matter what type of audit, enforcement action or criminal tax investigation you are facing, our dual licensed Tax Attorneys & CPAs can appear with you or potentially in your place so that you can avoid incriminating yourself further or exposing yourself to an overly stressful and intimidating situation.
Types of Audits the IRS May Initiate
The IRS utilizes several different types of audits when examining or investigating taxpayers. Correspondence audits, office audits, and field audits are audits that differ by where and how they take place. Correspondence audits occur through the mail, and office audits occur at an IRS revenue agent’s office. A field audit is much more detailed and occurs at the taxpayer's home or place of business. It is important to have a dual licensed Tax Lawyer & CPA to interface with the IRS in all these audits; however, the field audit is particularly risky since the IRS agent could gain access to huge amounts of financial information that they might aim to use against you and your colleagues.
The IRS can conduct either a civil tax audit or a criminal tax investigation. Typically, an IRS Special Agent will conduct a criminal tax investigation. Special Agents from the IRS Criminal Investigation division will identify themselves and read the taxpayer their non-custodial Miranda Rights. However, evidence for a criminal tax investigation can be collected during a civil audit and later referred for criminal tax investigation. Occasionally, a criminal tax investigation will occur concurrently with a clandestine civil audit, thus being obscured by the civil audit. It is possible that a seemingly benign civil audit can lead to potential criminal tax liability. That is why involving a dual licensed Tax Lawyer & CPA early in any type of audit is the most effective way to identify underlying criminal tax issues in your audit and take action to mitigate any resulting criminal tax exposure.
Field audits conducted at a business entail an IRS representative reviewing financial records, interviewing employees, and even touring the offices or other facilities of the business. A large business with many physical locations and employees could undergo an audit like this for weeks or months.
The IRS will formally request the documentation it wants to review during a field audit, but the total information they could discover while on site is much larger than usually provided in a correspondence or office audit. Employee interviews can unintentionally yield a tidal wave of potentially damaging information. Employee interviews cover various business-related topics, and each question is designed to elicit information for further investigation. Legal counsel can prepare interviewees so that they understand how best to respond to the IRS revenue agent without providing more information than necessary and how to respond to inquiries in a manner that mitigates any risk inherent in the client’s fact pattern.
A dual licensed Tax Lawyer & CPA should be present throughout the entire field audit, especially in every owner or employee interview. If a line of questioning in an audit begins to sound like a clandestine criminal tax investigation, our attorneys will intervene to achieve damage control. Our attorneys will interface with IRS representatives on your behalf and monitor the audit to identify potential risks and implement appropriate mitigation strategies.
Taxpayer’s who intentionally or inadvertently materially understate revenue, overstate deductions, or claim credits they are not entitled to that have not voluntarily disclosed the misstatements are at risk for an eggshell audit. This is the industry term for a civil tax audit where the taxpayer knows about an material compliance issue underlying the returns under audit, but the IRS representative does not. As a result, the taxpayer, and frequently their representative, is figuratively walking on eggshells around the auditor to avoid the issue from coming to light, hence the colloquial description of this type of audit. When such an audit occurs, it may be tempting to lie to that auditor to attempt to avoid discovery or disclosure of the underlying noncompliance. However, lying to a federal agent is a felony.
If an audited tax return contains material, intentional or inadvertent noncompliance, it is extremely beneficial to seek out the counsel of our dual licensed Tax Lawyers & CPAs at the outset of the audit. Whether the error was intentional or accidental, you should proactively address the error before the auditor discovers the issue. Our attorneys can evaluate the error to determine if it is a material misstatement, present options to remedy it, and communicate with the IRS.
One of the best strategies to handle an eggshell audit is to avoid ending up in that situation altogether. Hiring a dual licensed Tax Lawyer & CPA before audits occur can assist with identifying issues and developing a plan to address them. There could be many areas of uncertainty in complex tax returns, especially for companies with foreign assets. Our dual-licensed Tax Lawyers & CPAs can advise on these grey areas of tax law before filing tax returns to minimize the risk of non-compliance and subsequent audits.
Reverse Eggshell Audits
An audit in which the IRS revenue agent secretly seeks confirmation of the intent a taxpayer had when they materially misstated their returns is informally known as a reverse eggshell audit. This audit typically comes before a criminal tax investigation and is dangerous because the auditor can collect evidence for the subsequent or simultaneous criminal tax investigation without the taxpayer knowing the IRS already considers it a criminal tax case. This practice eliminates notice of the clandestine criminal tax investigation and does not allow taxpayers to utilize their constitutional criminal defense rights against self-incrimination and unreasonable searches and seizures.
While part of the definition of a reverse eggshell audit is that the taxpayer is unaware of what the auditor is seeking, a dual licensed Tax Lawyer & CPA can look out for signs of this type of audit. Our experienced attorneys have witnessed enough high-risk audits to recognize when an auditor’s actions imply an ulterior motive. Questions that focus on the intent of a particular tax-related choice, expanding the tax return years under audit, and asking for excessive copies of information could all indicate that the civil audit is obscuring or becoming a criminal tax investigation. Once a civil auditor refers a case for criminal tax investigation, they may suddenly stop their audit and become unreachable. Additionally, an IRS Special Agent may secretly continue the audit or openly take the place of the civil tax auditor.
Such unusual audit occurrences indicate that a criminal tax investigation has begun or is being initiated. At this point, our dual-licensed Tax Lawyers & CPAs can shift from monitoring an audit to actively defending against criminal tax allegations. Our attorneys can help you avoid being blindsided by a criminal tax investigation, mitigate existing risks, and protect your rights as necessary. In addition to tax deficiency payments plus interest, audits can result in additional financial penalties, criminal tax charges, increased future scrutiny, and, worst-case scenario, prison time. These can be huge consequences for a taxpayer. Do not face these risks alone – ask our dual-licensed Tax Lawyers & CPAs for help today.
How Do I Choose a Tax Lawyer or CPA in Sacramento?
For many taxpayers seeking legal help, their concerns may range from proper filing under complex circumstances, amending past filings to regain compliance, or defending against potential or upcoming audits or IRS, FTB, CDTFA or EDD criminal tax investigations. In many cases, the taxpayer may be dealing with more than one of these issues, even if they do not realize it at the time.
For this reason, the legal representation that the taxpayer seeks out should be able to handle all of their potential issues. Many tax law firms specialize in one or two areas but do not have the necessary experience in other areas. This could leave the taxpayer having to seek out separate counsel to help them with other issues. This additional step could lead to higher costs, additional wasted time, and potential miscommunication errors, ego battles and territorialism between law and accounting firms that could exacerbate the existing issues.
Therefore, when considering who to use for your tax law representation, you should carefully consider all the services that your potential service providers can provide. This is why the Tax Law Offices of David W. Klasing is your best option. Our firm boasts Tax Attorneys who are also Certified Public Accountants (CPAs), meaning that we have experience in various areas of multidisciplinary tax law. Our circumspect approach provides our clients the benefit of having a one-stop shop for all their tax planning, compliance, and controversy needs.
Another benefit of our services that you should consider is our localized operations. The Tax Law Offices of David W. Klasing operates throughout the State of California, including at our Sacramento offices. Being geographically close to our clients means we can easily accommodate short-notice meetings or in-person representation at office and field audits or court hearings. David Klasing is an instrument rated and licensed private pilot and owns a very fast yet affordable airplane that enables him to travel to virtually any point within California with two hours of getting airborne. The firm does not typically charge for travel time.
Contact the Tax Law Offices of David W. Klasing in Sacramento Today
Our skilled taxpayer advocates combine more than 20 years of experience representing taxpayers before federal judges, auditors from the Internal Revenue Service (IRS) and Franchise Tax Board (FTB), California Department of Tax and Fee Administration (CDTFA formerly know as the BOE), Employment Development Department (EDD), Administrative Law Judges (ALJs) with the Office of Tax Appeals (OTA), and others. Whether you are potentially facing felony tax charges, have questions about tax planning for your new business, need guidance on unfiled or delinquent tax returns, or require assistance with another tax matter, such as buying commercial property or passing down an inheritance, you can expect meticulous, aggressive, and client-focused service when you are represented by the Tax Law Office of David W. Klasing.
To arrange a reduced-rate initial consultation with an experienced tax attorney in Sacramento, contact our main offices by calling (916) 290-6625 or (800) 681-1295 or visit our contact us page online to book your appointment. Our appointment only Sacramento Tax Office is conveniently located at the following address:
180 Promenade Circle, Suite 300, Sacramento, CA 95834
Why Hire a Dual Certified Sacramento Tax Attorney and CPA
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Why Hire a Sacramento Dual Certified Tax Attorney & CPA, Reason #1
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International Tax Law Attorneys in Sacramento, CA
The ownership or control of a checking account, savings account, business account, foreign Bitcoin wallet/exchange, or other foreign source of taxable income that is located in a foreign country or territory may trigger foreign income and information reporting requirements under assorted federal laws. The two most prominent examples of this are:
- The Bank Secrecy Act (BSA), which establishes a requirement to disclose foreign bank accounts by filing an FBAR (also known as a Foreign Bank Account Report or FinCEN Form 114, formerly Form TD F 90-22.1). You may need to file an FBAR if your offshore income, such as the contents of one or more overseas bank accounts, exceeded $10,000 during the relevant tax year.
- The Foreign Account Tax Compliance Act (FATCA), which establishes a requirement to disclose offshore earnings by filing Form 8938 (Statement of Specified Foreign Financial Assets). You may need to file Form 8938 if your foreign earnings exceeded $50,000 during the relevant tax year.
Failure to comply with either requirement can cause the IRS to take actions ranging from assessing civil penalties (fines) for merely negligent actions or inactions, through recommending you to the Department of Justice (DOJ) for federal prosecution where income and foreign information reporting requirements are willfully omitted or misstated. However, you may be able to avoid these issues by filing amended returns through a domestic or expat streamlined disclosure program, participating in the Offshore Voluntary Disclosure Program (OVDP) before September 2018, or taking other corrective measures. Consult with our international FBAR attorneys, OVDP attorneys, or tax attorneys for expats for immediate guidance.
Sacramento Employment Tax Attorneys for Corporations, LLCs, and Partnerships
Taxpayers are subject to complex rules for filing and, in many cases, paying taxes to the IRS or California FTB or EDD. Some of the most stringent regulations apply to business owners and employers, who are subject to numerous requirements that do not affect the average taxpayer. For example, employers typically have a legal responsibility to withhold from employee pay, in some cases match, and remit to the IRS payroll taxes, which are alternately known as “FICA taxes” or “trust fund taxes.” These employment tax requirements generally involve state and federal income tax, the Social Security Tax, the Medicare Tax, and in cases involving high-earning employees, the Additional Medicare Tax (AMT).
Employers frequently run into legal trouble when they fail to withhold, match, and/or deposit payroll taxes as required, which can result in a trust fund recovery penalty (TFRP) or even criminal charges arising from willful employment tax evasion. Moreover, business owners and entrepreneurs must think carefully about strategic short-term and long-term business tax planning to protect the company’s bottom line. To help employers better meet these goals, our Sacramento business tax attorneys and accountants offer a diverse range of tax planning and defense services for corporations, limited liability companies (LLCs), partnerships, and other types of business entities, including but not limited to accounting and bookkeeping, business entity selection, business succession planning, tax services for clergy, and tax planning for foreign companies.
IRS, EDD, CDTFA (BOE) and FTB Tax Audit and Appeals Representation in Sacramento
A tax audit, also called an “examination,” is the process of reviewing a taxpayer’s personal and/or business financial records to gauge the truthfulness and accuracy of tax information submitted to the IRS, EDD, CDTFA (BOE) or FTB. Taxpayer examinations can be carried out at the state or federal level, and may involve different sets of audit procedures or statutes of limitations depending on factors like:
- The reason for the audit
- Whether willful tax fraud or serious errors are suspected (known as an “egg shell audit”)
- Whether the examination is a field audit, an office audit (desk audit), or a correspondence audit
The IRS tax audit lawyers and FTB tax audit attorneys at the Tax Law Office of David W. Klasing represent entities and individuals in all types of state and federal tax audits, including but not limited to California employment tax audits, California sales tax audits, foreign account tax audits, FBAR audits, and worker classification audits. We can also provide representation should you disagree with the outcome of the audit, in which case you may generally dispute, appeal or “protest” an auditor’s conclusions by compiling comprehensive, fact-based evidence supporting your logic. If necessary, we stand ready willing and able to litigate your tax case but we find that the taxing authorities are more than willing to settle on fair and equitable terms once we convince them that the law and fact are on your side and we can prove it.
Whether you have recently been notified that you were selected for an audit and need help navigating the next steps, or have already been audited and are now seeking California or IRS appeals representation, our aggressive IRS, FTB, CDTFA (BOE) and EDD negotiators (where necessary Tax Litigators) are ready to act on your behalf.
Sacramento Criminal Defense Lawyers Handling Tax Evasion Charges
The IRS has a fearsome reputation for aggressively enforcing compliance with federal tax laws. It takes only a glance at the IRS’ criminal enforcement data to see why this is so, considering that out of 2,744 recommendations for prosecution in 2016, a total of 2,672 – about 97.4% – culminated in criminal tax convictions.
Making this even more worrisome for taxpayers are the harsh penalties that can result from criminal tax charges: for instance, the five-year statutory maximum sentence and $100,000 criminal fine which may be imposed for a single count of willful tax evasion under 26 U.S. Code § 7201. In addition to sentences and criminal fines provided by various criminal tax statutes, defendants in criminal tax cases are also at risk of supervised release, IRS restitution, misdemeanor or felony records, and, in the cases of certain professionals or business owners, irreversible damage to one’s career or company. This is especially true for anyone licensed under California Business and Professions Code (i.e., Lawyers, CPAs, Engineers, Doctors, Architects, Dentists, Veterinarians and many more) where professional discipline that invariably follows a Federal or California criminal tax prosecution, will often result in the loss or suspension of California licensure.
Our criminal tax defense attorneys are qualified to represent defendants in federal court against a range of serious charges, such as income tax evasion (evasion of assessment/payment), willful failure to collect or pay over tax (payroll tax fraud), failure to file, supply information, or pay tax, or making false statements to the IRS or other government tax authorities. These and other tax offenses may be alleged against individuals, corporations, or both.
If an IRS criminal investigation has already begun against you, or if you suspect that a Federal or California Criminal Tax Investigation may be initiated, it is critical that you contact our tax evasion lawyers for an explanation of your rights, your responsibilities, and what steps to take next. Our IRS tax attorneys may be able to, at best, minimize the assessment of additional tax penalties and interest by keeping an issue purely civil, to at worst, minimizing jail time served in the event of a criminal tax conviction. However, the longer you wait to start planning a tax defense strategy, the more difficult it will be to confront the potential criminal tax charges and maintain your freedom successfully. Contact our Sacramento criminal tax defense attorneys right away for help with defending a Federal or California criminal tax charge, high risk egg shell audit, or criminal tax investigation.
Sacramento Tax Lawyers for Individuals and Businesses
When it comes to the U.S. Tax Code or California’s Revenue and Taxation Code, errors can be costly – not only to the taxpayer, but also to his or her family, business, or professional credentials and reputation. Even in cases where this no danger of noncompliance, the taxpayer can still suffer financial losses by overlooking or misunderstanding the complex regulations surrounding tax credits, tax deductions, tax exemptions, or investment opportunities, all of which are undergoing dramatic changes in light of the recently passed 2017 tax reform legislation, or Tax Cuts and Jobs Act (TCJA).
Whether you need to defend yourself against allegations of willful tax fraud or negligent tax mistakes, or are simply looking to lighten your tax burden and preserve your wealth by using the current tax laws more efficiently, count on the Tax Law Office of David W. Klasing for personalized guidance, courteous service, and tireless advocacy. To schedule your reduced-rate initial tax consultation, use our online scheduling form or call (916) 290-6625 or (800) 681-1295 today.
Sacramento Tax Attorney Practice AreasSacramento IRS Audit Representation
Domestic and International Business and Tax Attorney in Sacramento, CA
Sacramento, CA Audit Appeals and Litigation Attorney
Sacramento, CA Tax Audit Lawyer
Sacramento State Audit Tax Attorney + CPA
Sacramento IRS Federal Tax Audit Attorney + CPA
Sacramento California State FTB, EDD, CDTFA Tax Audit Attorney + CPA
Sacramento Foreign Account Tax Compliance Attorney + CPA
Sacramento Internet Sales Tax Attorney + CPA
Sacramento Tax Evasion Defense Attorney + CPA
Sacramento Employment Tax Attorney + CPA
Sacramento CA State Tax Audit Attorney + CPA