Tax audits are a closer examination of your tax return by a taxing authority to verify if your income and deductions are accurate. If during an audit, the taxing authority catches an error, it will make you pay the tax plus interest and penalties. If you don’t pay or cant pay, they have the ability to garnish wages, put liens on assets, and seize bank accounts in order to satisfy the tax owed.
Tax audits can be very stressful and last for years. When the taxing authority garnishes your wages, your employer is notified which can cause reputational problems with your employer. When they put liens on your assets such as your house, you will not be able to refinance at lower rates or pull cash out in an emergency.
To resole these issues in a timely and least stressful manner, you will need the help of a skilled tax professional. We have represented individuals, corporations, partnerships, estates and trusts, during their audits, and have fought for a positive resolution at the highest levels of appeals. With our firm representing you during your audit, you can rest assured we will do everything possible to resolve your matter in a speedy and stress-free manner.
Tax agencies we have represented clients during audit are:
Internal Revenue Service (IRS)
Franchise Tax Board (FTB)
Board of Equalization (BOE)
Employment Development Department (EDD)
Los Angeles Office of Finance
Filing a tax return is a requirement for individuals who had income. Entities may have a filing requirement even if they did not have any income. Most people believe that taxes are done once a year with information provided to the tax preparer at the time of preparation and filing. We take a more proactive approach and advise clients throughout the year. Some of the areas we advise on are the following:
- Business ownership is difficult on the best day. Your focus as a business owner should be, not worrying about tax compliance. We will do a detailed analysis of your books, records, previous tax returns, and conduct interviews with your staff to better understand your operations. This will allow us to provide you with recommendations on tax efficient cash flow planning and improved financial statement design which will all you to manage your business affairs with more precision. We have extensive experience with multi state Nexus ensuring your tax compliance and planning is covered nationwide.
- International tax planning can be very challenging. We draw on our worldwide resources of partner firms that have expertise in local jurisdictions to provide expert analysis and tax savings. Compliance with reporting requirements such as the Foreign Account Tax Compliance Act (FATCA) can be complicated and cumbersome. Penalties for noncompliance can be very severe and even lead to criminal charges. We have in depth knowledge of these requirements and will ensure your in compliance.
- Individual tax compliance may seem simple, however there are many hidden complexities. For example, if you invested in a foreign company or have assets overseas, you may have to disclose those assets and include the income in your tax return. Even if you invested in a domestic mutual fund which paid a foreign tax, you would have to claim that on your tax return. Once you get into estate planning or business transition planning, the tax issues become exponentially complicated. We are well versed in individual tax issues and will guide you through the complexities.
- Nonprofit entities are focused on public charitable activities and should not be concerned with day-to-day accounting and tax compliance issues. All Nonprofit entities tax returns are made public. Potential donors can access them and review the finances of the entity making it even more important to have accurate information. One area of compliance difficulty is Unrelated Business Income (UBI). Even though the entity is a nonprofit, it still must pay tax on any income it earns unrelated to the purpose of the charity. We have experience with these issues and many others associated with nonprofit entities and will make sure you are in compliance with regulations and not putting your nonprofit status in jeopardy.
When you are working with trusted and experienced tax advisors, you have the confidence in knowing your affairs will be handled timely and efficiently. Please contact us today for a free consultation.