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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.

Know about Tax Debt before Filing for Bankruptcy

April 23, 2026March 12, 2021 by Brotman Law

Filing for bankruptcy may feel like accidentally stepping off a cliff – it’s not something most people can mentally prepare themselves for in advance.

Key Takeaways

Filing for bankruptcy may feel like accidentally stepping off a cliff – it’s not something most people can mentally prepare themselves for in advance.
When it happens and you find yourself falling, it’s difficult to know if you’ll hit rocks below and suffer permanent damage. Alternately, you could plunge into a lake, bob to the surface and have an easy swim to shore.
Then there are the issues that accompany the decision to file such as tax consequences. The debtor must try to satisfy not just the creditors, but often federal and/or state tax collectors.

Establishing Residency or Domicile in California Can Be Taxing

April 23, 2026March 3, 2021 by Brotman Law

Robert Wood, tax expert and frequent contributor to Forbes.com, wrote that “many would-be former Californians have unrealistic expectations about establishing residency in a new state. They may have a hard time distancing themselves from California, and they may not plan on California tax authorities pursuing them.”

Key Takeaways

Guidance Questions of Facts
Temporary or Transitory Purposes
What About Domicile?

How Does the FTB Handle Business Tax Collections?

April 23, 2026January 8, 2021 by Brotman Law

Tax attorney consultation at Brotman Law

Key Takeaways

Partnership Collections
Field Collections
Conclusion

The people who administer state tax laws generally show up in the news only when a newsworthy case is reported, typically one involving tax evasion, a “big fish” going to jail for not paying taxes.

How to Process Employee Withholding Orders for Taxes

April 23, 2026December 12, 2020 by Brotman Law

In an earlier chapter, we touched on wage garnishment as a means for the FTB to collect unpaid taxes. However, the other side of the fence can be if you are an employer and are called upon by the FTB to garnish wages of any of your employees.

Key Takeaways

Earnings Withholding Order for Taxes (EWOTs)
What to Do if You Receive an EWOT
How to Process an EWOT Payment
Determining the Priority of Various Withholding Orders
Making Payments

What Is EDD Offer In Compromise?

April 23, 2026December 12, 2020 by Brotman Law

Key Takeaways

There are certain types of people that will go to great lengths to save money.
There is a clear line between saving money and breaking the law, and it is not just “the little people,” who are expected to pay their taxes.
It is not just income earned legally that is taxable, either.

There are certain types of people that will go to great lengths to save money. I’m not talking about eating a strict diet of ramen noodles and taking the bus when you could afford to drive – I’m talking about tax avoidance.

Frequently Asked Questions About IRS Collections and Taxes

April 23, 2026October 7, 2020 by Brotman Law

In my years of representing clients before the IRS, I have been asked some common questions about the IRS, filing taxes and collections. The following is a compilation of my responses to some of the questions I hear the most from my clients. I hope that this Q&A section answers some of the questions that you may have. As always, if you have additional questions, please feel free to call me and I will do my best to answer them for you.

Key Takeaways

In my years of representing clients before the IRS, I have been asked some common questions about the IRS, filing taxes and collections. The following is a compilation of my responses to some of the questions I hear the most from my clients.
The first thing to do when you have not filed taxes is to get them filed so you know how much you owe the government and can begin fixing the problem. You need to establish your filing compliance as soon as possible.
In some cases, we have had situations where clients honestly do not remember what years they have and have not filed for.

What Is the FAST Act?

April 23, 2026October 7, 2020 by Brotman Law

Key Takeaways

If you owe the IRS $50,000 or more in back taxes, it is better to be proactive, then try to travel abroad or renew your passport and find out that you cannot.
What the Law Says: FAST Act Provisions Governing Passports
Title XXXII, Subtitle A, Section 32101 of the FAST Act gives the IRS the power to deny or revoke passports for taxpayers who have a “serious tax liability” of $50,000 by issuing notice to the Secretary of State’s office.
At the IRS level, carve-outs exist as well.

The IRS means business when it comes to recouping what is owed to them. Their latest strategy is implementation of the FAST Act. Simply put, if you owe more than $50,000 to the IRS, the IRS can seize your passport, thus prohibiting your ability to travel outside the U.S. This can be particularly problematic if you frequently travel overseas or have a residence in another country.

Innocent Spouse Relief

April 23, 2026October 7, 2020 by Brotman Law

Key Takeaways

This is a concept in the law known as joint and several liability, meaning that the spouses are responsible for any tax liabilities together (jointly) but can be held responsible for them as individuals (severally).
This is why when a married couple signs their tax return, both parties are attesting to the accuracy of the tax that is owed.
The rationale behind this is that it would be unfair to limit the collection rights of the IRS by virtue of an agreement that it was not a party to.

The Theory of Innocent Spouse Relief

Because of certain benefits that filing jointly allows, many married taxpayers elect to file joint returns. However, filing a joint return carries the added burden of both parties being liable for the tax due. In addition, under the IRS code, married taxpayers who file jointly are each liable for any additions to the tax, penalties, or interest associated with the account.[1]