CA Collections Archives

How to Hire a Tax Attorney to Deal with the FTB

April 23, 2026April 27, 2022 by Brotman Law

Key Takeaways

One of the main reasons that I started blogging was to help people.
Because I am focused on the FTB at the moment, I want to state that I do not believe everyone needs a tax attorney to handle their issues with the Franchise Tax Board.
Indeed, if you take the time to read much of what I have written on the blog, you can almost become as knowledgeable as I am on many of these same subjects (although I have an experience edge dealing with this stuff in practice).

One of the main reasons that I started blogging was to help people. I wanted to motivate “self-help” style legal solutions by taking the knowledge that I have as an attorney and making it available on the web.

The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 4

April 23, 2026February 18, 2022 by Brotman Law

Key Takeaways

Keeping Good Records
How To Prepare For A Dealership Audit
How A Tax Attorney Can Help

In “The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 3,” we discussed what happens after a Notice of Determination is issued, California’s special tax districts, DMV registration fees, not-so-secret warranty strategies and the importance of keeping your bill of lading.

In Part 4, we continue with processing transactions such as unwinds and the more complicated rollback. We will also discuss why it is a bad idea to try to avoid paying sales taxes on repossessions.

Finally, if perchance you do get audited, we’ve provided a list of records you should be keeping in your deal jackets and several reasons it would be a good idea to hire an attorney to represent you.

The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 3

April 23, 2026February 16, 2022 by Brotman Law

The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 1 | Brotman Law

In The Car Dealer’s Guide to CA Sales & Use Tax Audits – Part 2, you learned what to expect if you were the recipient of an audit engagement letter, some common techniques the auditor uses as well as how the interview and records examination will be conducted.

In Part 3 of our guide, we will discuss what happens after a Notice of Determination is issued, a little on California’s special tax districts, DMV registration fees, not-so-secret warranty strategies and the importance of keeping your bills of lading.

The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 2

April 23, 2026February 11, 2022 by Brotman Law

In “The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 1,“ we discussed the CDTFA’s history of targeting car dealerships for sales tax audits due to the high abuse and error in the industry, as well as the complexity of these kinds of audits. We also outlined how auto dealers are selected for an audit.

In Part 2, you will learn what to expect if you are the recipient of an audit engagement letter, some common techniques the auditor will use as well as how the interview and records examination will be conducted.

The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 1

April 23, 2026February 9, 2022 by Brotman Law

Key Takeaways

Ask anyone who has ever owned a dealership and they will tell you that the car business is a tough one.
California has a long history of targeting car dealerships for sales tax audits due primarily to high abuse/error in the industry and the complexity of these types of audits (which usually result in more tax being owed to the State).
Additionally, the California Department of Tax and Fee Administration (CDTFA) has become notorious for aggressive tax positions taken toward dealership resulting in liabilities in the hundreds of thousands or even millions of dollars depending on the volume of the dealership.

Ask anyone who has ever owned a dealership and they will tell you that the car business is a tough one. With all the moving pieces that a dealership faces on a day in and day out basis though, one risk that often gets overlooked by owners is the risk that they face in a sales tax audit.

Most of the “mistakes” that we see in the context of audit preparation are benign. Things like not separating shipping charges properly, people not accounting for time and material costs, things being billed individually, or a failure to adjust sales tax rates for the proper district are little and seemingly harmless mistakes in the context of your business operations. But they will trigger an audit.

Employment Development Department Installment Agreement – Part One

April 23, 2026November 10, 2021 by Brotman Law

Under California law, taxpayers have a legal obligation to report and pay contributions and withholdings when due. If a taxpayer becomes delinquent in the payment of amounts due, the Employment Development Department (EDD) will take appropriate action to collect the full amount immediately.

Key Takeaways

Under California law, taxpayers have a legal obligation to report and pay contributions and withholdings when due.
The EDD recognizes that sometimes it is in the best interest of the state and in the interest of a California taxpayer that EDD allows an installment agreement to liquidate over a period of time an amount owed by taxpayer.
A taxpayer can request installment agreement by phone, by letter or by completing and filing an Installment Agreement Request (DE 927B).

The EDD recognizes that sometimes it is in the best interest of the state and in the interest of a California taxpayer that EDD allows an installment agreement to liquidate over a period of time an amount owed by taxpayer.

What Is an Employment Development Department (EDD) Audit?

April 23, 2026October 1, 2021 by Brotman Law

The Employment Development Department, or EDD, is one of the largest California state departments and is responsible for administering the payroll tax regulations for California businesses and individuals

Key Takeaways

Employment Training Tax provides funds for training employees in specifically targeted industries to make California more competitive in business. It is withheld at a rate of 0.1 percent with a taxable wage limit of $7,000 for 2021.
Personal Income Tax is levied on the income of California residents and income derived from the state by non-residents. The tax rate is determined by the employee’s Withholding Allowance Certificate (W-4 or DE 4). There is no taxable wage limit or maximum tax.
The Employment Development Department (EDD) and Franchise Tax Board (FTB) use these taxes to provide resources for state public services such as schools, public parks, roads, and health and human resources.

Can Currently Non-Collectible (CNC) Status Stop the FTB?

April 23, 2026September 8, 2021 by Brotman Law

Key Takeaways

The decision to place a taxpayer’s account on CNC is based on an examination of your Collection Information Statement (CIS) that has been completely updated to the time of the examination.
Currently Not Collectible status is meant for severe economic hardship – it is not easily granted.
Periodically, the IRS and FTB will re-evaluate your situation to see if your financial status has changed enough to begin collections again.

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.

How to Request an EDD Installment Agreement

April 23, 2026September 1, 2021 by Brotman Law

There are many individuals – including famous ones – that don’t pay or haven’t paid their taxes in years. Take for instance the late Anthony Bourdain. Before he became a household name with “Kitchen Confidential,” he hadn’t paid his taxes in ten years. He lived with the unrelenting anxiety of the IRS finding out and taking the little money he had to live on.

Key Takeaways

There are many individuals – including famous ones – that don’t pay or haven’t paid their taxes in years. Take for instance the late Anthony Bourdain. Before he became a household name with “Kitchen Confidential,” he hadn’t paid his taxes in ten years.
Until he was 44 year old, Bourdain worked as a chef, lived paycheck to paycheck, and was in some serious debt.
After “Kitchen Confidential” became a hit and the money started to flow, Bourdain said he called up the IRS and his credit card company, paid what he owed and never racked up debt again.

California Payroll Tax: SUI, ETT, SDI & PIT Employer Guide

April 23, 2026August 13, 2021 by Brotman Law

The California payroll tax structure for an employer in this state is based on four distinct taxes, commonly referred to as the CA SUI, ETT, SDI, and PIT payroll taxes. There are different rates for each of these taxes and the calculation methods are different as well.