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As an actor, live performer, or the owner of an entertainment company, you are affected by unique Federal and California tax requirements. Unlike taxpayers in other industries, you may need to confront issues like the taxation of residual income for actors, whether actors are considered self-employed for tax purposes, how to prepare for a film production audit, and whether you qualify for any actor tax deductions.
Get dependable, strategy-focused advice on these and other entertainment tax issues by working with an experienced San Francisco tax attorney or CPA from the Tax Law Office of David W. Klasing, an award-winning, full-service tax firm serving the San Francisco Bay Area. We provide tax audit representation, audit appeals representation, criminal tax defense representation, business tax services, bookkeeping and accounting services, tax planning and preparation services, and related tax compliance services to individuals and business entities in the entertainment industry.
San Francisco Tax Audit Attorneys for California + Out-of-State Entertainment Companies
If you or your entertainment company has been chosen for a tax audit, talk to the San Francisco tax audit lawyers at the Tax Law Office of David W. Klasing for help taking the next steps. Our founder and lead attorney, David W. Klasing, has more than a decade of public auditing experience, giving our team strategic insights that enable us to negotiate effectively and aggressively on your behalf.
We handle all types of audits at all stages, from the initial preparation and evidence-gathering, to the appeals process after the audit has been completed. Audits that we can assist you with include, but are not limited to, the following:
- Actor and voice actor audits
- California state tax audits
- CDTFA tax audits (California Department of Tax and Fee Administration)
- EDD tax audits (Employment Development Department)
- FTB tax audits (Franchise Tax Board)
- Civil tax audits
- Criminal tax audits
- Eggshell and reverse eggshell audits
- Foreign account tax audits
- IRS tax audits, including federal income tax audits
- Movie theater audits
- Production company audits
- Royalty audits
- Worker classification audits
Here is a link to our YouTube channel: click here!See our Audit Representation Q and A Library See our Sales Tax Q and A librarySee our Employment Tax Law Q and A Library
Criminal Tax Defense Representation in San Francisco, CA
What starts as a civil tax audit can culminate in criminal charges. This may occur if an auditor discovers indicators of tax fraud (“badges of fraud”) during the examination, or if the audit was triggered by badges of fraud. From an IRS perspective, warning signs that a taxpayer may be engaged in fraud include failing to file tax returns, failing to make full and timely tax payments, understating or concealing income, failing to report foreign bank accounts, improperly claiming tax credits or deductions, paying employees “under the table” (in cash), failing to classify workers correctly, and keeping multiple sets of books.
After an auditor discovers badges of fraud, he or she will generally stop the audit and refer the case to the IRS Criminal Investigation (IRS-CI) division, whose special agents will then take over an criminal tax investigation. Special agents also receive information from IRS debt collectors, tax fraud referrals, and public sources of information like websites or newspapers, in addition to using data analytics. If IRS-CI determines that there is enough evidence to potentially justify an indictment (criminal charge), the case will be forwarded to the U.S. Department of Justice (DOJ) with a recommendation for criminal prosecution. Our San Francisco tax fraud defense lawyers can intervene at all stages of this process, potentially preventing prosecution by negotiating strategically with the IRS.See our Criminal Tax Law Q and A Library 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
Audit Appeals Representation for Actors + Performers
When an audit concludes, the appropriate agency will issue a notice to the taxpayer stating what, if any, actions are required of the taxpayer. For example, the auditor may have determined that the taxpayer owes a tax liability, unpaid interest, and/or various civil tax penalties, such as failure-to-pay or accuracy-related penalties.
If the taxpayer agrees with the auditor’s conclusions, he or she can simply make the appropriate payment arrangements, following the instructions provided. However, if the taxpayer feels that the auditor made a mistake, he or she can dispute the findings.
There are several ways to dispute the results of a state or federal tax audit. For example, if the amount in dispute is below $25,000, the taxpayer may be able to file a Small Case Request. Minor disputes can also potentially be resolved through IRS mediation. However, if the dispute is complex or involves large amounts, it may be necessary to request and negotiate an appeal.
To initiate a tax appeal, the taxpayer must send a protest letter to the IRS or California Office of Tax Appeals (OTA) by the date provided on his or her notice. The protest letter must explain, in clear and concise detail, exactly which points the taxpayer disputes and on what basis. This basis must be legal, mathematical, or otherwise factual; it may not be constitutional, which is one of numerous “frivolous” arguments the IRS will not consider. Our San Francisco audit appeals attorneys can guide you through this process, and if necessary, initiate tax litigation.See our IRS Appeals Q and A Library See our Tax Litigation Q and A Library
San Francisco Tax Lawyers + Accountants for Film Production Companies
Whether you have questions about tax preparation issues like cast and crew W2s, need help getting your small business prepared for an audit, or are concerned about being targeted for a criminal tax investigation, the Tax Law Office of David W. Klasing can provide clear and timely answers about your legal options and tax responsibilities.
To arrange a reduced-rate consultation, contact us online today, or call our San Francisco tax office at (415) 287-6568. You can also reach our main office in Irvine by calling (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:
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