Collections Archives - Brotman Law

Installment Agreements and the IRS: Settling Your Debt

April 23, 2026April 29, 2022 by Brotman Law

Key Takeaways

Aside from the possible late filing fee, there are penalty fees for late payment. They are charged at ½ of 1% of your unpaid tax balance.
Under the Fresh Start Initiative, if you owe less than $50,000 total in back taxes, penalties, and fees you should qualify for a 72-month Installment agreement without needing to undergo an in-depth financial disclosure.
If you owe more than $50,000 total in back taxes, penalties, and fees, or if you will need more than 72 months to clear your balance, you will need to submit a detailed financial statement with your application.

In an ideal world, everyone would be able to pay their taxes in full and on time, but sometimes it just isn’t possible. If difficult circumstances mean that you are coming up short during a tax season, it is probably the source of a lot of stress and anxiety.

The instinct to avoid the issue may be strong, but it can cause your problems to multiply exponentially. Interest, penalties, and other severe consequences can begin to build up. The most important thing for anyone struggling with their taxes to know is:

the IRS can usually work with you, but only if you work with them, and
calling a tax attorney is often a better idea than seeking out the advice of your CPA.

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.

IRS Offer in Compromise: What to Do When They Are Rejected – Part Two

April 23, 2026January 14, 2022 by Brotman Law

IRS Offer in Compromise: What to Do When They Are Rejected – Part One

April 23, 2026January 12, 2022 by Brotman Law

IRS Offer in Compromise Appeals – Introduction

As a refresher to the reader, an IRS offer in compromise is a tax settlement with the IRS where the taxpayer agrees to pay a specified sum and the IRS agrees to compromise on the remaining liability.

Key Takeaways

IRS Offer in Compromise Appeals – Introduction
IRS Offer in Compromise Appeals – First Steps
IRS Offer in Compromise Appeals – Last Chances at the Offer Specialist Level

Many people have seen the various national tax agencies on daytime television offering to settle your tax debt for pennies on the dollar. However, what is left out of their sales pitch is that nearly eighty percent of IRS offer in compromises are rejected for a variety of reasons. This is not entirely a bad thing, but requires some strategic planning on the part of the taxpayer.

How to Work with Brotman Law on Your IRS Collections Case

April 23, 2026December 3, 2021 by Brotman Law

Key Takeaways

The biblical tale of David and Goliath is certainly inspiring and does much to instill the belief that you can overcome any opponent, no matter how much they out-size, out-weigh or out-spend you.
Unfortunately, this is not a fair comparison to use for someone going nose-to-nose with the IRS.
I am not saying that you should just roll over and play dead if the IRS informs you that you owe taxes with penalties and interest tacked on.

The biblical tale of David and Goliath is certainly inspiring and does much to instill the belief that you can overcome any opponent, no matter how much they out-size, out-weigh or out-spend you.

Unfortunately, this is not a fair comparison to use for someone going nose-to-nose with the IRS.

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.