Sacramento, CA Audit Appeals and Litigation Attorney
As taxpayers already know, the IRS is not infallible – and when IRS auditors make errors, it’s the taxpayer who suffers. Audit errors can result in consequences like substantial tax assessments, interest charges, and even civil penalties. However, tax laws make it possible for any taxpayer in Sacramento to challenge the outcome of an IRS audit, a process known as “appeals.” Likewise, taxpayers can appeal the results of various state tax audits, including audits conducted by the Franchise Tax Board (FTB), Employment Development Department (EDD), and California Department of Tax and Fee Administration (CDTFA). Finally, if the dispute is not resolved on appeal, the taxpayer may litigate the most unresolved issues in U.S. Tax Court or with California’s Office of Tax Appeals (OTA).
Audit Appeals and Tax Litigation Lawyers in Sacramento, CA
At the Tax Law Office of David W. Klasing, we are award-winning audit appeals and tax litigation attorneys serving small to middle market closely held businesses and individuals throughout the Sacramento, CA area. From negotiating with IRS appeals officers to aggressively arguing cases in California or Federal tax court, we bring over 20 years of tax experience to every matter we handle.
If you need help settling an IRS dispute or other tax dispute in Sacramento, look to the Tax Law Office of David W. Klasing for zealous representation. We assist taxpayers with audit appeals and tax litigation arising from a wide array of audits and tax controversies, including but not limited to the following:
- Business and employment tax audits
- CDTFA tax audits
- Corporate tax audits
- Deficiency actions
- EDD tax audits
- FBAR audits and foreign bank account audits
- FICA/payroll tax audits
- FTB tax audits
- Industry-specific audits
- IRS tax audits
- Refund actions
- Sales and use tax audits
- California income tax audits
- Worker classification audits
What if I Disagree with the Results of an IRS, FTB, EDD, or CDTFA Audit?
If you disagree with the outcome of a California tax audit or federal tax audit, you may be able to appeal the results, giving you the opportunity to avoid an enormous tax bill. However, there are certain standards and requirements to keep in mind when approaching this process, such as the fact that the IRS will not consider religious or constitutional arguments.
To appeal an IRS decision, the taxpayer must prepare a document called a “protest letter” or timely file a tax court petition where a (90-day letter) final notice of deficiency has been issued. Be advised that submitting a written protest does not guarantee that the IRS appeal office or California Office of Appeals will agree to grant your request for an appeal. To be effective, your protest letter or tax court petition must contain specific items, including but not limited to:
- The copy of your IRS or California Tax Notice with the proposed changes
- A list of the statements or items you disagree with, indicating the applicable tax years
- Your reasons for disagreeing, supported by facts such as statutes or prior court rulings
- Your signature and contact information
California tax audit appeals are handled by the Office of Tax Appeals (OTA), which was created in 2017 to help settle disputes involving taxes assessed by the FTB and CDTFA. The OTA now administers many of the Board of Equalization’s (BOE) prior functions. Instead of submitting a protest letter, the taxpayer submits an “opening brief,” which, like the letter of protest, must contain contact information, the taxpayer’s reasoning for his or her disagreement, and the facts and laws supporting such reasoning.
Our Sacramento audit appeals attorneys have represented numerous taxpayers before the OTA (previously BOE) and IRS Appeals. We can help you prepare the strongest opening brief, protest letter or tax court petition possible, while protecting and counseling you throughout the appeals process.
What if I Disagree with an IRS Appeals Decision?
According to the IRS, Appeals resolves approximately 100,000 taxpayer disputes every year. However, there remain tens of thousands of taxpayers whose controversies are not settled at Appeals. If you are among the many taxpayers with a tax issue which cannot be, or has not been, resolved on appeal, it may be appropriate to explore the possibility of litigation in U.S. Tax Court – in other words, suing the IRS.
The greater the amount in dispute, or the more complex the legal questions involved, the greater the likelihood that tax litigation will become necessary.
Taxpayers must follow strict legal procedures and deadlines to engage in tax litigation effectively. For example, you must file your petition within 90 days, at maximum, of the date you received your notice of deficiency (“90-day letter”) from the IRS. However, if you were overseas, the deadline expands from 90 days to 150 days. The petition must be filed with the Clerk of the Tax Court, located in Washington D.C.
Sacramento Tax Law Offices
Every year, thousands of taxpayers receive improper, overreaching or inaccurate notices from the IRS, CDTFA, FTB, EDD and other tax authorities. By appealing the results of a tax audit – or if necessary, litigating the case in California or U.S. Tax Court – the taxpayer can fight the decision and, potentially, avoid paying thousands and even millions of dollars.
At the Tax Law Office of David W. Klasing, we understand that challenging the IRS or other government agencies can be intimidating. Equipped with decades of tax experience – including Mr. Klasing’s 10 years of experience as a former public auditor – our knowledgeable Sacramento tax lawyers can make the process simpler, less stressful, and more efficient, while increasing your likelihood of achieving a favorable outcome. For a reduced-rate consultation about the tax dispute resolution services we provide in Sacramento, contact us online, call us at (916) 290-6625 or (800) 681-1295.