Income Tax Archives - Brotman Law

What is an IRS Taxpayer Advocate?

April 23, 2026May 4, 2022 by Brotman Law

Key Takeaways

Secondly, when you have not received a response to your inquiries, you must have contacted the IRS at least two times before.
In terms of IRS notice problems, you must have responded at least two times to an IRS notice “requesting some IRS action.
The Taxpayer Advocate will not take your case if the problem cannot be solved by the IRS, if your case is under criminal investigation or if you are considered a tax protestor.

The IRS Taxpayer Advocate helps taxpayers resolve problems with the IRS and also recommends changes to help prevent problems in the future. The Taxpayer Advocate handles those issues when the tax problem is causing significant financial difficulty, when you or your business are facing immediate, adverse threat and when you have tried to contact the IRS repeatedly to no avail.

Virtual Currency Gains Momentum

April 23, 2026January 7, 2022 by Brotman Law

Virtual currency is a digital version of “value.” This value functions as a medium of exchange and may be used to purchase goods, services, or stored for investment. Essentially, it’s digital money and is quickly gaining popularity.

Key Takeaways

Virtual currency is a digital version of “value.” This value functions as a medium of exchange and may be used to purchase goods, services, or stored for investment.
There are two main forms of virtual currency.
Virtual currency that has no equivalent value in real currency is known as convertible currency.

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.

Get to Know California Income Tax Brackets

April 23, 2026May 28, 2021 by Brotman Law

Key Takeaways

The Franchise Tax Board
Income Tax in California: How is it Calculated and Collected?
Understanding Income Tax Brackets: What Are Your Rates?
Filing Your California Income Tax Return
Underpayment and Penalties

In California, state income taxes are generally among the highest in the country, but the burden is spread among different segments of the population. The rate of California income tax is arranged on something of a sliding scale, separated by income tax brackets.

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.

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.

An Update on California’s Proposals to Tax the Rich

April 23, 2026January 8, 2021 by Brotman Law

During the summer of 2020, California’s political machinery continued to whine and hum. As its populace sheltered in place with COVID-19, two tax bills were introduced on the state’s Assembly floor.

Key Takeaways

Wealth Tax
Assembly Bill No. 2088
Income Tax May Go Up
Relitigating is Likely

Tax Return Demand from the FTB Intensifies

April 23, 2026November 7, 2020 by Brotman Law

{{cta(’09b64408-9310-4451-9a41-0234b45d370e’,’justifyright’)}}Are you a marketplace facilitator or out-of-state business who has received a tax return demand from the California Franchise Tax Board? If so, read this before you respond. We’ve provided the essential background information you need to formulate a plan prior to your response.

Key Takeaways

The most pervasive aspect in our experience is California will be as aggressive as possible in the assessment and collection of taxes.
You may be familiar with the Supreme Court’s decision in Wayfair v.
Economic nexus is the principle that a certain amount of economic activity within a state can trigger enough minimum contacts for that state to be able to assert jurisdiction over a business and su…

What to Do If You Miss the Tax Filing Deadline

April 23, 2026April 26, 2017 by Brotman Law

What To Do If You Missed The Tax Deadline

Key Takeaways

If you are expecting a refund, you don’t sweat it because you do not get penalized for not filing in this case. You won’t get your refund until you do file, but otherwise, the IRS is not going to come after you for your paperwork.
If your income was $58,000 or less, you can use the free version of a brand-name income tax software to prepare your return. If you earned over that amount and feel comfortable preparing your own return, you can use the IRS Free File Forms.
In both cases, you can use IRS Free File to file your return electronically. IRS E-file is available until October 18 for filing your 2016 income taxes.

Uh oh. It is now after April 18^th, and you did not file your taxes. What do you do?

If you are expecting a refund, you don’t sweat it because you do not get penalized for not filing in this case. You won’t get your refund until you do file, but otherwise, the IRS is not going to come after you for your paperwork. (If you wait until after April 18, 2020, though, the IRS keeps your refund, so you better get on it.)