Blog Archives - Page 17 of 52

The California Franchise Tax Board & Business Income Taxes

April 23, 2026May 19, 2021 by Brotman Law

California can be an expensive state in which to do business, and it’s not getting any cheaper. Small businesses in the state are particularly hard hit under the state tax laws.

Key Takeaways

California can be an expensive state in which to do business, and it’s not getting any cheaper.
California has a higher than average state income tax imposed on business and personal income, plus it engages in double-taxation when it comes to business entities structured so that the income passes through to the owner.
The federal government does not collect personal income taxes on these business owners, seeing it as double taxation.

California has a higher than average state income tax imposed on business and personal income, plus it engages in double-taxation when it comes to business entities structured so that the income passes through to the owner.

The Franchise Tax Board is the agency responsible for administering personal and business income tax in the State of California. While the state generally follows the lead of the IRS in setting policy, it does not do so in every instance, as we shall see.

Learn How to Beat the IRS with the Tax Master Class

April 23, 2026May 17, 2021 by Brotman Law

The first “Tax Master Class,” masterminded and hosted by Sam Brotman, took place on Thursday, April 29, 2021. Due to the current COVID-19 climate, the event was on Zoom, but for those who missed it, a recording will be made available.

Key Takeaways

The Business of Taxes
And Then Something Clicked
The Tax Gap and the One-Trick Pony
Doing The Math
Make A Tax Action Plan

Brotman’s message was aimed at business owners owing more than $100K in taxes. Although the IRS is systematic he warned that with its new influx of money and pressure from the U.S. Treasury to fill the widening $441 billion tax gap, it is far less likely to let the “big whales,“ slip through their nets .

With his many successful years of defending clients against the IRS and the state of California, Brotman decided to put on a seminar about alleviating tax debt, in a sense, performing a much needed, long-form, free public service announcement.

Using his interest in high-stakes poker as a stage, he conveyed that dealing with the IRS is not a game of luck or chance, it’s a game of skill. In this way, his “Tax Master Class,” offers learning the edge to beating the IRS at their own game.

Can Brotman Law Help Me In My Criminal Tax Case?

April 23, 2026May 10, 2021 by Brotman Law

Criminal tax issues are often woven together with other charges. Having an understanding of the center point of the government’s investigation and whether the tax component is the steak or the side dish can have implications in most criminal tax cases from the beginning.

Key Takeaways

Criminal tax issues are often woven together with other charges.
At Brotman Law we take special precautions in criminal matters and our initial meetings with our prospective clients are usually done in person. The goal of our initial meeting is to put all the facts on the table.
Should I retain Brotman Law to represent me in my criminal tax matter? When you go through a criminal tax case, there will be a lot of different phases. Criminal tax cases can be multi-year investigations. They are a huge commitment and they are a huge threat.

What is Criminal Tax Fraud & False Statement?

April 23, 2026May 7, 2021 by Brotman Law

There have been many stories written and reported about Donald Trump’s confidential tax returns, business expenses and financial records. According to a NY Times article, there exists “a trove” of records showing that Mr. Trump helped his father sequester millions of dollars from the IRS.

Key Takeaways

Understanding Tax Fraud & False Statement
How Does the Government Prove Fraud & False Statement?
“Making” and Signing a False Document
False as to a Material Matter
Belief & Willfulness

What Are IRS Allowable Living Expenses? [Definition & Classifications]

April 23, 2026May 3, 2021 by Brotman Law

Although a favorite saying of IRS revenue officers is that “The IRS is not a bank” and takes collection of taxes owed seriously, the IRS is prevented from collecting assets that a person needs to survive and meet their basic living requirements.

Key Takeaways

Although a favorite saying of IRS revenue officers is that “The IRS is not a bank” and takes collection of taxes owed seriously, the IRS is prevented from collecting assets that a person needs to survive and meet their basic living requirements.
The IRS calls these “Allowable Living Expenses” and they are excluded from the calculation that collection agents use to determine a taxpayer’s reasonable collection potential.
If you are applying for an offer in compromise or other repayment plan with the IRS, they are going to make you justify your living expenses. How do you do that.

Your Rights as a California Taxpayer

April 23, 2026April 30, 2021 by Brotman Law

Key Takeaways

The California Department of Tax and Fee Administration (CDTFA) administers the tax program for both business and property taxes for the State of California.
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 CDTFA 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.

The California Department of Tax and Fee Administration (CDTFA) administers the tax program for both business and property taxes for the State of California. Business taxes include:

How to Prepare for a 1099 Independent Contractor Audit

April 23, 2026April 23, 2021 by Brotman Law

In this article, we are going to dive into the nuts and bolts of how to really prepare for a 1099 Independent Contractor Audit and potential misclassification issues.

Key Takeaways

Gathering the 1099 independent contractor information
Google and Social Media Screening in 1099 Independent Contractor Audit Preparation
Other Key Documents in Preparing Supporting Documentation for the 1099 Independent Contractor Audit

4 Frequently Asked Questions about California State Taxes

April 23, 2026April 9, 2021 by Brotman Law

Key Takeaways

What advice can you give me about setting up a payment plan with the State of California?
Will California grant me innocent spouse relief?
How does financial analysis work for collections cases in California?
How does California locate taxpayers and their assets?
Conclusion

As a tax attorney, I get asked a lot of questions everyday regarding – you guessed it – the rather specialized world of California taxation. To be sure, some questions are asked more frequently than others. In light of this, I’ve given some thought to four frequently asked questions and hope that my answers provide you with the information that you’re interested in.

IRS Prioritizes More Delinquent, High-Income Taxpayers

April 23, 2026March 24, 2021 by Brotman Law

Imagine yourself working as an IRS agent. Your department is in charge of identifying delinquent, high-income taxpayers who gross $200,000 or more per year in your state.

Key Takeaways

Imagine yourself working as an IRS agent. Your department is in charge of identifying delinquent, high-income taxpayers who gross $200,000 or more per year in your state.
Looking at a computer spreadsheet, you verify several names and socials of small business owners whose gross pay tops out at about $300,000 annually. Each taxpayer owes the government between $70,000 to a $150,000 in back taxes from 2016-2019.
On another spreadsheet, five very wealthy taxpayers who work in different fields are listed. Three out of five have c-level titles connected to large corporate subsidiaries, one is a best-selling author, and one owns a sports team.

Taxpayers, the IRS and Cryptocurrency

April 23, 2026March 17, 2021 by Brotman Law

Tesla made waves when it announced in an SEC filing on February 8, 2021 that it purchased $1.5 billion worth of bitcoin. Tesla also announced that it will start accepting bitcoin as payment for its products, which makes it the first major automotive manufacturer to do so.

Key Takeaways

The popularity of bitcoin has risen with its value. This rise in popularity has piqued the interest of the IRS.
If interested in the basics of cryptocurrency, the tax status of virtual currency, and why contacting legal experts in the field is a taxpayer’s best bet moving forward, the following information will help you understand more about this digital economy.
Virtual currency, often called cryptocurrency, or “crypto” for short, has been around since 2009. Bitcoin was created to be a peer-to-peer direct payment system that allowed users to transfer funds to each other without using a bank.