San Francisco Dually Licensed Tax Attorney & CPA for Architects
Tax compliance for architects is a complex matter, and should be guided by an experienced tax attorney in San Francisco. At the Tax Law Office of David W. Klasing, we have more than 20 years of experience providing an array of tax, accounting, and legal services to architects and architectural firms, ranging from tax audit defense and IRS appeals representation, to criminal tax representation, to tax preparation and business tax planning. Whether you need help preparing for an IRS audit, negotiating a tax appeal, or have general questions about tax planning for architects, our award-winning tax firm is here to provide you with sophisticated, strategic counsel – 24 hours a day, seven days a week.
Business Tax Planning, Preparation, & Compliance for Architects in San Francisco
In many regards, architects and architectural firms enjoy favorable tax treatment under the Tax Cuts and Jobs Act (TCJA) of 2017, which created sweeping federal tax reforms. For example, by excluding them from its definition of “specified service trade or business (SSTB),” the TCJA allows architects to deduct up to 20% of their qualified business income (QBI), known as the 199A deduction (26 U.S. Code § 199A). This benefit is unavailable to many other professional service firms, with architects and engineers being unique exceptions.
Thoughtful tax planning and preparation enables architects to leverage these and other financial opportunities – and to avoid making costly compliance blunders. Review your current tax strategy, your accounting and bookkeeping systems, and your business filing requirements with one of our San Francisco business tax attorneys today.
See our Entity Selection Q and A Library
See our Business Purchases and Sales Q and A Library
See our Business Succession Q and A Library
See our International Tax Q and A Library
Common Reasons for Architecture Industry Tax Audits
The IRS has released a series of Audit Techniques Guides (ATGs) specific to various industries. For instance, one of the IRS’ ATGs, originally published in 2011, is specific to architects and landscape architects. As the IRS explains, “While ATGs are designed to provide guidance for IRS employees [such as auditors], they’re also useful to small business owners… [because they discuss] industry-specific examination techniques,” along with information concerning “the examination of income, interview techniques and evaluation of evidence.”
According to the IRS Architects and Landscape Architects Audit Technique Guide, compliance issues commonly arise around 199A deductions, to which the IRS consequently pays close attention. Other issues that can trigger an architect tax audit – or, of still greater concern, lead to a criminal tax investigation – include unfiled returns, unpaid tax liabilities, unreported income, concealed domestic or foreign bank accounts, falsified returns, and the misclassification of workers.
State + Federal Tax Audit Representation for Architects (IRS, CDTFA, FTB, EDD)
Our San Francisco tax audit lawyers represent architects in all types of examinations, including civil, criminal, state, federal, and foreign account tax audits. Types of audits our office can assist you with include, but are not limited to, the following:
- Audits of non-U.S. residents
- California and federal employment tax audits
- California state tax audits, such as Franchise Tax Board (FTB) audits or California Department of Tax and Fee Administration (CDTFA) audits
- Civil and criminal tax audits
- Foreign Bank Account Report audits (FBAR)
- Individual and business tax audits
- IRS federal tax audits, such as U.S. income tax audits
- Worker misclassification audits
See our 2011 OVDI Q and A Library
See our FBAR Compliance and Disclosure Q and A Library
See our Foreign Audit Q and A Library
See our Criminal Tax Law Q and A Library
See our Audit Representation Q and A Library
See our Employment Tax Law Q and A Library
See our Sales Tax Q and A library
San Francisco Audit Appeals Attorneys for Architects + Architectural Firms
If you do not agree with the results of your audit, several options for disputing the outcome may be available to you. If your dispute involves an amount below $25,000, you may qualify to file a Small Case Request, unless you are a partnership or S corporation for tax purposes. If your dispute involves a larger amount, you may be eligible to request an IRS Appeals conference by submitting an IRS protest letter outlining and supporting your argument. The California Office of Tax Appeals (OTA) follows similar procedures, making it possible for California taxpayers to appeal the results of a CDTFA or FTB audit. In order to appeal successfully, it is critical to follow the deadline provided to you by the taxing authority, generally a period of 30 days.
The tax appeals process is intensely rigorous and should not be embarked upon without guidance from a seasoned audit appeals attorney in San Francisco. Depending on the outcome of your appeal, it may be necessary to bring your case to Tax Court, which our tax litigation attorneys can also assist you with.
San Francisco Tax Lawyers, CPAs and EAs for California, Foreign, & International Architects
Architects benefit from nuanced tax guidance, particularly when faced with an audit or indictment. If you are an architect in Northern California, or if you are an out-of-state (foreign) or international architect who works with California-based clients, it is prudent to consult a competent tax attorney or CPA. To schedule a reduced-rate consultation, contact the Tax Law Office of David W. Klasing online, or call our San Francisco office at (415) 287-6568. You can also reach us by calling our main office in Irvine at (800) 681-1295.
Please note meetings at our San Francisco location are by appointment only.
Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship. With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.
Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company? Absolutely not! See our policies that address this issue here