Tax Services

TAX AUDITS, APPEALS, AND LITIGATION

• Represent taxpayers in FTB franchise and income tax audits, protests, settlements, appeals to the OTA, and state court litigation. Issues include state tax residency for individuals moving to or from California; allocation and apportionment of income for businesses operating in multiple states; sourcing personal income earned in other states; tax credits for income taxes paid to other states; state tax nexus and Public Law 86-272 protection; whether entities are engaged in a unitary business; business and nonbusiness classification of income; taxation of trusts and estates; IRC section 1031 like-kind exchanges; penalty abatement/waiver; and more.
• Represent taxpayers in IRS Large Business and International (LB&I) and Small Business/Self-Employed (SB/SE) audits and appeals, as well as litigation in the U.S. Tax Court and federal courts. Issues include whether a taxpayer is materially participating in an activity; employee retention tax credits (ERC); research and development (R&D) tax credits; substantiating cost of goods sold, business aircraft, and other business expenses; Bipartisan Budget Act (BBA) centralized partnership audits; distributions in excess of basis; the at-risk rules; Forms 1042/1042-S compliance for tax withholding on payments to foreign persons; foreign earned income exclusion; expatriation of individuals; high income non-filers; and more.
• Represent taxpayers in CDTFA sales tax, use tax, excise tax, and other special tax and fee audits, appeals conferences, settlements, appeals to the OTA, and state court litigation.
• Represent taxpayers in property tax audits, appeals, and litigation involving change in ownership and valuation issues.
• Represent taxpayers in audits, appeals, and litigation with local business license/tax agencies, such as the City of Los Angeles Office of Finance and San Francisco Office of the Treasurer and Tax Collector. Issues include determining the correct methodology for apportioning gross receipts to the City of Los Angeles under the Los Angeles Municipal Code and City Clerk’s Ruling number 15.
• Review tax returns to determine if a taxpayer has been overpaying tax (by, for example, reporting non-taxable income as taxable, or sourcing receipts to the wrong jurisdiction), and pursue claims for refund of the overpayments.
• Review tax returns during tax audits and appeals to determine if there is a basis to offset any assessment of additional tax, interest, and penalties (if, for example, the returns originally filed and under examination contain reporting errors favorable to the taxpayer).
• Represent taxpayers in audits intended to reclassify workers as employees or independent contractors, and other employment tax matters such as trust fund penalty investigations.
• Represent taxpayers in litigation at the United States Tax Court, the California Office of Tax Appeals, and all levels of California state courts and U.S. federal courts.

TAX ADVICE AND FORMAL TAX OPINIONS

• Provide well-researched tax advice with supporting analysis to taxpayers and their accounting professionals regarding complex and novel tax issues, including determining whether one-off income and expense items are taxable or deductible.
• Provide detailed and actionable advice regarding state tax residency planning to individuals moving to or from California; property tax planning related to change in ownership transactions; and other tax planning matters.
• Draft Circular 230 tax opinions regarding complex and novel tax issues, which may support taking a certain position on a tax return. Certain written opinions can avoid tax-related penalties if a tax agency later successfully challenges the position.

UNFILED TAX RETURNS AND VOLUNTARY DISCLOSURES

• Assist taxpayers who have not filed U.S. or California state and local tax returns get into compliance.
• Assist taxpayers in making voluntary domestic and offshore disclosures to the IRS and California state and local tax agencies regarding unreported foreign bank accounts, unreported business activities in a state or city, and other noncompliance.

TAX ISSUES IN BANKRUPTCY CASES AND CRIMINAL LAW CASES

• Advise clients and bankruptcy attorneys and professionals on whether a tax debt is dischargeable in bankruptcy.
• Represent various parties as tax counsel in bankruptcy and insolvency proceedings. Issues include litigating the correct amount of tax liabilities and the dischargeability of tax debt in U.S. Bankruptcy Court.
• Advise and represent parties involved in criminal cases in determining the correct amount of tax for criminal restitution payments, and other tax issues arising in criminal law cases.

TAX DEBT COLLECTION MATTERS

• Assist taxpayers in negotiating installment agreements for unpaid tax debt with the IRS and California state and local tax agencies.
• Assist taxpayers in reducing their tax debt through offers in compromise based on doubt as to liability and other grounds.
• Represent taxpayers requesting innocent spouse relief from joint and several liability of tax based on spouse’s wrongful conduct and other grounds.
• Assist taxpayers in avoiding and removing tax liens and getting a refund of wrongful levies. Cases include removing tax liens to close a real estate purchase or sale transaction.