San Diego Audit Appeals and Litigation Attorney
In San Diego, tax law encompasses a wide range of regulations and procedures that govern the collection and administration of taxes by federal and California state authorities. The Internal Revenue Service (IRS) is responsible for enforcing tax laws and collecting taxes at the federal level. The IRS handles various types of taxes, including income tax, corporate tax, payroll tax, and excise tax. At the state level, the California Franchise Tax Board (FTB) administers personal income tax and corporate tax, while the California Department of Tax and Fee Administration (CDTFA) oversees sales and use taxes, as well as various excise taxes and fees. The Employment Development Department (EDD) is another essential tax agency responsible for administering the state's payroll tax program. It includes collecting unemployment insurance tax, state disability insurance tax, and employment training tax from employers. The EDD also plays a crucial role in enforcing compliance with labor and tax laws for both employers and employees in California, ensuring that appropriate payroll taxes are paid, and employment benefits are provided as required by law.
Our tax litigation and appeals team is led by dually licensed Attorney-CPA David W. Klasing. Possessing a Master's in Taxation, David is among an elite group of only 3,000 professionals in the country with similar credentials. Out of 1.1 million attorneys and 560,000 CPAs, there are merely an estimated 24,000 dual-licensed attorney-CPAs nationwide, setting David apart from the competition. He has served in prominent positions such as Past Chair of the OCBA Tax Committee, Past Chair of the California Bar Tax Procedure and Litigation Committee, and Past Education Chair of the American Society of Attorney CPAs.
With over 20 years of experience assisting taxpayers in minimizing liabilities and efficiently resolving IRS disputes, David's unique skill set grants our team a strategic edge in representing clients before protest or appeals officers, the chief counsel's office, or U.S. Tax Court. We have a great track record of substantially improving our client's overall tax situations through our protest, appeals, and litigation practice. Suppose we do not believe you will benefit from our representation. In that case, we will decline to take on the engagement. We always place our client's needs for transparent, honest, fair, and zealous appeals and tax litigation representation over our inherent need to make a profit.
San Diego Audit Appeals and Tax Litigation Lawyers Can Help
Tax law in San Diego, California, encompasses a multifaceted system of courts and agencies. Federal tax disputes are usually settled in the United States Tax Court, which presides over conflicts between taxpayers and the IRS. Taxpayers also have the option to litigate tax disputes in the United States District Court or the United States Court of Federal Claims. In California, tax disputes are generally addressed by the California Office of Tax Appeals (OTA). This unbiased and autonomous appeals body handles tax disagreements involving the FTB, EDD, and CDTFA.
The tax process in San Diego involves several stages, including filing tax returns, audits, appeals, and, in some cases, tax litigation. Taxpayers are obligated to file their tax returns annually, and both federal and California state tax authorities may conduct audits to confirm these returns' accuracy. If taxpayers disagree with an audit's outcome, they can appeal the decision. Tax litigation becomes a critical factor at this stage, as it can help resolve unsettled disputes. The importance of tax litigation cannot be understated, as it ensures that taxpayers have a fair opportunity to present their case and protect their rights and interests in the complex world of tax law.
While we try to avoid litigation, we are thoroughly prepared to bring a case to trial when doing so is in the client's best interests. Whether we are negotiating a favorable compromise or are on the attack with hard-hitting litigation strategies, our San Diego audit appeals and litigation lawyers are zealous and dedicated taxpayer advocates. We help business entities and individual taxpayers appeal the results of the following:
- Bitcoin- and cryptocurrency-related audits
- Business and corporate tax audits
- Correspondence audits
- Employment and payroll tax audits
- Estate and gift tax audits
- Field audits
- Income tax audits
- Office audits
- Sales and use tax audits
- Worker classification audits
- CDTFA audits (California Department of Tax and Fee Administration);
- EDD audits (Employment Development Department);
- Excise tax audits;
- FICA/Payroll tax audits;
- Foreign Account Tax Compliance Act (FATCA) and international tax issues;
- FTB audits (Franchise Tax Board);
- IRS audits (Internal Revenue Service);
- Eggshell audits;
- Reverse eggshell audits;
- Sales and use tax audits;
- State tax audits;
- Worker classification audits;
- Industry-specific Audits:
- California Income Tax Audits;
- Civil and Criminal tax investigations and litigation;
- Partnership taxation;
- Collection due process disputes;
- Penalty and interest issues.
The taxpayer must request an appeals conference to file an appeal with the IRS Office of Appeals. It is accomplished by filing a written letter of protest, at which point the case will be referred to the Office of Appeals for review. The taxpayer must receive Letter 525, called the "general 30-day letter," before submitting a protest letter. The written protest must contain, among other elements, the following:
- A copy of the notice(s) you received
- An overview of the assessment, interest, or penalties in dispute
- A statement indicating your intent to appeal
- Supporting evidence and documents, such as bank statements
- The pertinent statute and case law supporting your arguments as to why you should prevail
To file an appeal with the OTA, the taxpayer must mail or fax the below documents before the "appeal-by" date. This date will be featured on the taxpayer's Notice of Action or Appeals Bureau Decision notice, which they will receive from the FTB or CDTFA when the audit is complete. Necessary documents to include in the "opening brief," which is similar to an IRS protest letter, include:
- A copy of the notice(s) you received
- A written request for a hearing to review the disputed issue
- Supporting evidence and documents
By understanding the situations that may lead to a tax dispute and the process for filing an appeal with the appropriate tax authorities, taxpayers can better navigate the complex world of tax litigation and work toward a favorable resolution.
Disputing the Results of a State or Federal Tax Appeal in Court
If a taxpayer disagrees with the audit findings of the IRS, they can dispute it through an expedited appeals process or by filing a lawsuit in Tax Court. The expedited appeals process involves the auditor, their manager, and an appeals officer. However, this method may not always be effective, as the auditor and their manager are emotionally invested in the audit results. It often plays out as three against one.
The usual appeals process is achieved by filing a tax court petition. It involves an independent review of the taxpayer's case by an appeals officer not involved in the initial audit. The IRS auditor and manager are not directly involved in the appeals process. The appeals officer will independently consider the taxpayer's arguments and supporting evidence and attempt to resolve with the taxpayer, who also weighs the litigation hazards to the IRS in the client's fact pattern. If the appeals process does not result in a resolution, the taxpayer has a second bite of the appeal with the IRS Chief Counsel's office on the Tax Court steps.
Unfortunately, the appeals process alone is not always sufficient to resolve every tax dispute. If the taxpayer disagrees with the results of their appeal – an outcome particularly likely in high dollar disputes involving corporate taxes, substantial tax debts, or allegations of tax fraud – it may become necessary to petition the United States Tax Court, thus initiating litigation. Such a petition must generally be filed within 90 days of the taxpayer receiving Letter 531 (Notice of Deficiency). However, an exception grants up to 150 days for taxpayers who received Letter 531 outside of the United States.
In addition to the U.S. Tax Court, tax litigation involves the United States District Court, the United States Court of Federal Claims, the California Office of Tax Appeals, and various California tax agencies. It is a complex and challenging process that demands the expertise of professionals who understand the intricacies of tax law and accounting principles. The dual-licensed tax litigation Attorneys and CPAs at the Tax Law Offices of David W. Klasing provide indispensable representation and guidance for taxpayers involved in disputes with federal and California tax authorities. With a comprehensive understanding of tax law, regulations, court procedures, and accounting practices, our team ensures that you receive strategic and effective representation tailored to your unique circumstances and navigate the complexities of tax litigation with confidence and precision.
San Diego Tax Law Offices
Many general litigation firms may provide clients with high-quality, zealous representation but lack detailed knowledge of tax law and procedure. On the other hand, our team is well-equipped to handle complex tax disputes, including offshore asset matters, voluntary disclosures, IRS audits, or disputes with the California state or local taxing authorities. By choosing the Tax Law Offices of David W. Klasing, you can trust that your tax disputes will be managed by professionals committed to achieving the best possible outcome on your behalf. Our San Diego tax litigation attorneys are forceful advocates and profoundly understand tax law and procedure. We leverage our in-depth understanding of tax laws and negotiation strategies to advocate for your interests in the IRS, FTB, CDTFA or EDD Appeals process’s. We aim to secure the best possible result while minimizing costs, stress, and potential risks associated with tax litigation. Our dual-licensed attorneys and CPAs focus on tax litigation and controversies, ensuring that our clients receive the specialized knowledge and experience necessary to resolve disputes through administrative resolution or litigation.
On December 6, 2022, The United States Attorney's Office for the Southern District of California issued the following update:
San Diego tax preparer, Jose Luis Gonzalez, was sentenced to 30 months in prison and ordered to forfeit $5,052,037 for transmitting more than $5 million through an unregistered money transmission business and claiming more than $19 million in fraudulent tax deductions in connection with the scheme. Gonzalez conspired with others to operate an unregistered money transmission business in the Southern District of California, leading to fraudulent tax returns and bogus deductions.
This case is a clear example of the severe consequences of tax fraud and the importance of working with a reliable, ethical, and experienced tax litigation attorney. The situation underscores the potential risks and penalties associated with tax litigation. It highlights the importance of having skilled, dual-licensed Tax Litigation Attorneys and CPAs on your side who can adeptly navigate the complexities of tax law and accounting principles, providing invaluable protection and representation in tax courts.
If you need help resolving a tax controversy, have questions about tax compliance, or need assistance with individual or business tax planning, contact the attorneys at the Tax Law Office of David W. Klasing today. Our experienced San Diego tax lawyers offer reduced-rate consultations on new cases or engagements. You can effortlessly get in touch with us through any of these three methods: dial (619) 780-2538, call (800) 681-1295, or contact us online. We are happy to schedule your matter for a reduced-rate initial consultation. Our San Diego office is conveniently located at:
501 W Broadway, Suite 800,
San Diego, CA 92101
Here is a link to our YouTube channel: click here!
More Commonly Asked Tax Audit Questions
- How should Tax Audits be Handled by Criminal Tax Counsel?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse egg shell audit?
- Why is a reverse egg shell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
- Effective tax defense counsels goals in an egg shell audit?
- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an egg shell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
- How IRS decides which tax returns are audited
- What are my appeal options if I disagree with IRS?
- What are my basic taxpayer rights if the IRS audits me?
- Options if I am unable to pay at the conclusion of audit
- What a 30 or 90-Day Letter from the IRS means
- What is involved with appealing disagreements?
- Rights to disagree with IRStaxauditor'sss findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
- How to avoid negative consequences from an IRS interview
- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What ifIdon'ttt respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- Most common audit technique used by taxing authorities
- Don't go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
California Sales Tax Questions and Answers
- Common issues encountered during sales tax audit
- What is a sales tax audit?
- Disagreeing with business audit conclusions
- Timeline to file Petition for Redetermination?
- What should Petition for Redetermination contain?
- Is the appeals conference formal or informal?
- Appeals Division's Decision and Recommendation
- Are a mark-up percentage and a profit margin the same?
- Problems with the mark up audit
- Can State Board of Equalization ignore my business records
- What is a sales tax deficiency determination?
- Business being audited for sales tax. Should I be worried?
- Audit determined fraud to avoid sales and use tax
- Definition of "sale" for California Sales Tax
- What do California sellers need to know about sales tax?
- How do I apply for a sellers permit?
- What are my obligations as a permit holder?
- What is sales tax?
- What is tangible personal property?
- What is a sale?
- What are total gross receipts?
- What is use tax?
- Who is responsible for paying the use tax?
- Who is a retailer engaged in business in California?
- Who is a qualified purchaser?
- Do I need a Certificate of Registration Use tax?
- Do I need a Use Tax Direct Payment Permit?
- What types of sales are exempt from sales tax?
- How are Internet Transactions Taxed?
- How is California sales or use tax determined?
- What is the statewide sales and use tax rate?
- Are there other local and district sales and use taxes?
- Total sales and use tax rate calculation
- How to protect against successor liability in California
- Recourse when issued California sales tax liability notice
- CA Sales Tax liability extend to purchasers/successors?
- Waiting Until Audited to Take Action on Tax Matters
- Sales tax records needed in California
- What are California's sales and use taxes?
- Why does the State of California audit businesses to ensure compliance with sales and use taxes? How does the State determine whether to audit my business?
- The BOE reviews the purchase invoices of my business
Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS's functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn't know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it's minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
- How to defend a client charged with tax evasion
- Is it tax evasion if I didn't file income tax return?
- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
- Government proof I "willfully" failed to pay taxes
- 5 Ways to Respond to Tax Evasion Charges
- Being audited after using a tax professional
- Rules for what an IRS agent can do while investigating me
- How tax preparers, attorneys and accountants are punished
- How the IRS selects tax crime lead for investigation
- How does the IRS prosecute suspected tax crimes?
- Does IRS reward informant leads for suspected tax crimes?
- How the government proves deficiency in a tax evasion case
- Do prior tax crimes factor into new IRS tax convictions?
- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
- What are my rights during an IRS criminal investigation?
- Avoid prosecution for tax crime with voluntary disclosure?
- Defense tactics that make it hard for to prove willfulness
- How a tax attorney can stop your criminal tax case?
- What can you generally tell me about tax crimes?
- Continuing filing requirement with investigation pending
- Federal criminal code crimes that apply to tax issues
- Penalty for making, subscribing, and filing a false return
- CID special agent's report for criminal prosecution
- What is the discovery process in a criminal tax case?
- What the IRS includes in indictment for tax case
- What is the hardest element of a tax crime to prove?
- IRS methods of gathering evidence to prove tax crime
- What does a grand jury do in IRS tax crime prosecution?
- Failure to keep records or supply information
- Failure to make a return, supply information, or pay tax
- What is attempting to evade payment of taxes?
- What is income tax evasion and how is it punished?
- What is attempted income tax evasion?
- What is the crime of failure to pay tax? What is punishment
- Crime of making or subscribing false return or document
- Criminal Investigation Division investigation tactics
- Tax crimes related to employment tax forms and trust funds
- Tactics to defend or mitigate IRS criminal tax charges
- How the IRS generates leads about suspected tax crimes
- What is the crime" evasion of assessment" of tax?
- Specific examples of "attempting" to evade tax assessment
- What is the so-called Spies evasion doctrine?
- Does overstating deductions constitute tax evasion?
- Is it tax evasion if my W-4 contains false statements?
- IRC §7201 attempt to evade vs. common-law crime of attempt
- What are the penalties for Spies tax evasion?
- How government proves a taxpayer attempted tax fraud
- What is a tax that was "due and owing.”
- What is evasion of assessment for tax liability?
- Is evasion of assessment different from evasion of payment
- Does the IRS have a dollar threshold for tax fraud?
- What is the IRS burden of proof for tax fraud convictions?
- Are Tax Laws Constitutional?
- What is the source of law that defines tax evasion?
- Does section 7201 create two distinct criminal offenses?
- Does tax evasion definition include partnership LLC
- What if I helped someone else evade taxes?
- Is it illegal to overstate deductions on my tax return?
- Is it illegal to conceal bank accounts from the IRS?
- Do later losses justify prior deductions?
- Common reasons the IRS and DOJ start investigations
- What is the Mens Rea component of tax crimes?
- What is a proffer agreement and what are the risks?
- Why to have an attorney to review a proffer agreement
- Why enter into a proffer agreement?
- Limited use immunity from proffer agreements
- Difference between civil and criminal fraud allegation
Questions About Delinquent Payroll Taxes and Trust Fund Recovery Penalty
- What happens if an employer continues to incur new payroll tax liabilities?
- California Employment Taxes Basics
- How Does the IRS Develop an Employment Tax Fraud Case from the First Indication of Fraud to a Criminal Indictment?
- Can more than one person be considered responsible by IRS
- How unpaid employment tax payments are allocated
- When a corporate officer is considered a responsible party
- Examples of trust fund recovery penalty determinations
- Failing to pay employment taxes after notice is given
- How to determine responsible person for trust fund recovery
- Assessing trust fund recovery penalty and option to appeal
- What is the trust fund recovery penalty?
- What are the penalties for failure to pay employment taxes
- When am I considered liable for company’s employment taxes