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Your Rights as a Taxpayer with the Board of Equalization

August 12, 2024March 29, 2017 by Brotman Law

The Board of Equalization (BOE) administers the tax program for both business and property taxes for the State of California. Business taxes include:

Sales and use tax
Fuel tax
Cigarette tax
Alcoholic beverage tax

Business taxpayers may take up their concerns directly with the main office of the BOE while property tax concerns are addressed by the local county office.

When you deal with the tax agencies of California, you may feel like you do not have any rights. These agencies can be aggressive and overwhelming to most individuals unused to dealing with them.

Do I Qualify for Innocent Spouse Relief?

August 12, 2024March 15, 2017 by Brotman Law

When you sign a joint tax return with your spouse, you are signing a legal document that holds both signatories in “joint and several liability” for the information on the return. In other words, each of you can be held liable for the entire tax amount, including penalties and interest if you underpay or do not pay at all.

But what if your spouse underpaid your joint taxes without your knowledge? What if, when your spouse prepared the tax return, he or she did not report one or more items, used the wrong tax basis, or did something else that caused your joint taxes to be underpaid?

Can a Currently Non-Collectible Status Stop the FTB?

August 12, 2024March 9, 2017 by Brotman Law

Sometimes your financial fortunes take a turn for the worse, and you find yourself owing back taxes to the Franchise Tax Board. You don’t even have two coins to rub together, much less make installment payments, yet you are looking for an alternative to filing for bankruptcy. An Offer in Compromise is also off the table; you just don’t have the money.

You Have Options for Paying Your Tax Debts

August 12, 2024February 15, 2017 by Brotman Law

If you have a tax liability, you have several options for paying it. The IRS provides relatively straightforward instructions on the various types of payment methods and other ways to discharge the liability.

In California, you can also deal with the Franchise Tax Board, the Board of Equalization, and the Employment Development Division.

Payment options:

Straight payment or payment in full
Payment or installment plan
Offer in Compromise
Extensions

Let’s take a look at each.

When Tax Investigations Go Criminal

August 12, 2024February 8, 2017 by Brotman Law

When the IRS knocks on your door, it is enough to make you shake in your shoes. A visit from a revenue agent (auditor) or revenue officer (collection) who claims to have detected possible fraud means you are already in hot water.

The steps from suspicion to criminal tax investigation have already taken place, and that IS agent already has enough information to prosecute.

It is also possible that you expected this visit if you or your business have been audited recently by the IRS and you have gleaned from your interaction with the service that they may have found something fishy in the handling of your taxes.

How to File an Appeal with the California Board of Equalization

August 12, 2024February 1, 2017 by Brotman Law

The California Board of Equalization has audited you and found potential underpayment of taxes, fees, or additional amounts the BOE determines you owe.

Your next step is to meet with the BOE supervisor and then the District Principal Auditor. If you do not convince them that the results are in error, you can file an appeal.

What to Do if the EDD Takes Your Money

August 12, 2024January 25, 2017 by Brotman Law

The California Employment Development Department can legally withhold money owed to you by the state for repayment of debt. In other words, either through error or willful action, you owe a monetary debt to the State of California.

The EDD is within its legal rights to withhold money from a variety of programs and tax refunds if you do not pay up. It works with the California Franchise Tax Board, the State Lottery, and the State Controller to collect the outstanding debt.

What is a Sales Tax Nexus and How Does It Affect My Business?

August 12, 2024January 18, 2017 by Brotman Law

A state may create legislation requiring a seller with nexus in that state to pay tax on sales of tangible property within the state.

What is nexus and how does it affect your business?

Preparing for the 2017 Tax Season

August 12, 2024December 28, 2016 by Brotman Law

It is that most un-wonderful time of year: tax time. April 15 may be a bit far away, but as a small business owner, you need to get your documentation for 2016 together as soon as possible. Your tax professional will thank you.

By the way, one of the changes for next year includes moving a filing deadline from April 15 to March 15 if your business structure is a pass-through. More on that later. First, here is a rundown of the documents you need to gather for your accountant.

How a Tax Attorney Can Help with Your Tax Lien

August 12, 2024December 21, 2016 by Brotman Law

Our last few posts have been about how the various California state tax agencies handle tax liens.

A brief review:

The Board of Equalization (BOE) administers the sales and use tax.
The Franchise Tax Board (FTB) administers and enforces the individual and corporate state income tax laws and property taxes.
The Employee Development Department (EDD) administers payroll tax and unemployment and disability insurance for the state.