Tax Preparation and Compliance
Whether you are seeking tax preparation guidance for your personal finances or for a business venture, the Tax Law Offices of David W. Klasing can provide trusted, on-point guidance for your tax needs. Individuals and business owners in California, must comply with both state tax obligations and federal tax obligations. As such, there are an array of taxing authorities and agencies that individuals and business owners in California must engage with. For federal income tax filings, offshore account disclosures, and federal employment tax obligations the IRS is the relevant government agency. For California state-tax obligations the taxpayer must work with and satisfy the Employment Development Division (EDD) for payroll and employment tax obligations, the Board of Equalization (BOE) is charged with administering sales and use tax along with other tax obligations. Business owners may also work through the Office of the California Secretary of State to make certain filings affecting the business entity.
A Tax Attorney Provides Confidentiality Should You Face a Tax Audit or Criminal Tax Enforcement Action
Individuals who choose to work with a tax attorney who is also a certified CPA can derive certain important legal benefits through the advisor’s status as an attorney. While both tax lawyers and accountants can provide their clients certain privileges to encourage the client to be forthcoming, the attorney-client privilege is significantly stronger than the accountant-client privilege. The attorney-client privilege will, in most cases, protect anything you tell your attorney from disclosure in future proceedings. This privilege is strong and it is recognized in all 50 states and in the federal courts. By contrast, the accountant-client privilege is less protective. While there is a limited federal privilege, most states do not have accountant-client privilege. Furthermore, the “federally authorized tax practitioner” (FTAP) privilege does not extend to criminal proceedings, such as tax evasion, and there is significant authority in the Eighth and Ninth Circuit Courts holding that communications regarding the preparation of a tax return are not privileged. Thus, if you are at high-risk to face further tax proceedings including a tax audit or a criminal tax enforcement action, working with a tax attorney can allow you to work to mitigate your situation while protecting any disclosures you make from being used against you in the future. As California is located within the 9th Circuit, individuals concerned about a criminal tax violation should act accordingly and contact a tax attorney as soon as possible.
Personal Income Tax Preparation & Offshore Account Disclosure Review
Taxpayers in California must file and pay their taxes each and every year. This obligation is almost universally held because the amount of gross income one can earn prior to being required to file is slight. As such, nearly all individuals have an annual obligation to at least file their taxes. Furthermore, most people will want to file because filing one’s taxes is the only way to receive the tax refund one may be entitled to receive. If you fail to file your return, you will be subject to a failure to file penalty and, potentially, a failure to pay penalty. If you do not file within three years of the original due date, you will lose your right to any tax refund that you otherwise would have received.
In light of FBAR, FATCA, and the U.S. government’s continuing efforts to close offshore tax evasion loopholes, individual taxpayers must also ensure that all required offshore tax disclosures are made. Taxpayers that fail to disclose foreign accounts and assets can face severe penalties under FATCA or FBAR through the Bank Secrecy Act. Penalties for willful FBAR violations routinely exceed the original account balance.
Business Tax Preparation for Corporate Returns, Employment Taxes, and California Sales & Use Tax Obligations
Business owners in Los Angeles and throughout California must also satisfy an array of commercial taxes whether the venture is small, mid-sized, or a large corporation. Two of the most common tax problems for California business to face are issues related to employment taxes and the California state sales tax. In both cases, businesses are charged with accounting for and collecting the proper amounts. Furthermore, when the time comes, the company must dutifully turn-over the funds to either the federal government or the appropriate state taxing authority.
Businesses that fail to account for and satisfy these obligations may not be caught immediately, but they will eventually be audited and identified. In the meanwhile unpaid tax due and owing has accrued along with additional penalties and interest. These unpaid taxes can grow until the point where their imposition is fatal to the company’s continued existence. Engaging in routine bookkeeping and tax preparation can protect a business from these avoidable, but serious consequences.
Rely on Our Experienced Tax Preparation and Compliance Guidance
At the Tax law Offices of David W. Klasing we are proud to provide high-quality, on-point, and strategic tax preparation and compliance guidance for both individual taxpayers and for businesses. To schedule a confidential reduced-rate tax consultation with an experienced tax professional call 800-681-1295 or contact our firm online today.