strategies-init Archives - Page 14 of 75

How to Get Free Taxpayer Assistance

April 23, 2026November 3, 2021 by Brotman Law

It is my firmly held belief that everyone should have access to good, top quality legal representation. However, even by charging the absolute minimum that I can for legal services, there are some taxpayers for whom even my services are too costly.

Although I take on and handle a significant amount of pro bono projects during the course of the year, I wanted to provide more information for those looking to get free taxpayer assistance and the ways to go about getting assistance. You can get help through a number of avenues, either through the Internal Revenue Service or other third parties.

Why Do I Owe State Taxes This Year? (& Why so Much?) 2022 Guide

April 23, 2026October 22, 2021 by Brotman Law

If you haven’t had to pay any state taxes for the past few years but now face a liability, you might be wondering, why do I owe state taxes this year? It’s a pretty common question that many taxpayers struggle to find the answer to.

You may not even be aware that you owe state taxes this year. It all depends on how your income has changed over the previous year and whether you still have any credits or deductions available to you that were used previously to reduce your taxes.

IRS Criminal Investigations Division

April 23, 2026October 20, 2021 by Brotman Law

Introduction to the IRS Criminal Investigations Division

The IRS Criminal Investigation Division is responsible for handling tax cases that are the subject of fraud and misinterpretation of the law. According to the IRS, “Criminal Investigation (CI) serves the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.”

Key Takeaways

The IRS Criminal Investigation Division is responsible for handling tax cases that are the subject of fraud and misinterpretation of the law.
The IRS Criminal Investigations Divisions examines potential criminal activity that is specifically related to tax crimes and makes recommendations for prosecution to the United States Department of Justice – Tax Division.
When the IRS criminal investigation starts an investigation, there is a little chance that the taxpayer will know about it right away.

The IRS Criminal Investigations Divisions examines potential criminal activity that is specifically related to tax crimes and makes recommendations for prosecution to the United States Department of Justice – Tax Division. As an example, tax fraud cases are typically referred to the IRS Criminal Investigation Division.

Divorce and Taxes Owed: Who is Responsible for Tax Debt in a Divorce?

April 23, 2026October 15, 2021 by Brotman Law

Joint and Separate Liability for Taxes Between Divorced Spouses

When a taxpayer files separately, it is clear who will bear the burden of any tax liability assessed by the IRS. However, it may not be as intuitive when a tax return is filed on behalf of two taxpayers.

Key Takeaways

When a taxpayer files separately, it is clear who will bear the burden of any tax liability assessed by the IRS. However, it may not be as intuitive when a tax return is filed on behalf of two taxpayers.
For a clearer understanding of joint and several liability, consider the analogy of an egg toss; where each losing two-man team pays the winning team $10 dollars in total. In an egg toss, both teammates are individually responsible for keeping the egg intact.
Regardless of whether player A makes a wobbly pass or player B fumbled the catch, if the egg is dropped the $10 must be paid up.

If a joint return is filed, the liabilities linked to this return are held joint and several between both taxpayers. (Internal Revenue Code, IRC 6013(d)(3)). This means you are both on the hook for the entire tax liability, until it is paid or released.

Ultimate Guide to Franchise Tax Board Collections

April 23, 2026October 13, 2021 by Brotman Law

Guide to Franchise Tax Board Debt Collection

Key Takeaways

Guide to Franchise Tax Board Debt Collection
FTB Liens––When California Comes for Your Money
The Consequences of Ignoring Payment Obligations
How to Stop Collections
Franchise Tax Board Liens–– Part Two

Franchise Tax Board–– An Overview

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.

How Long Does the IRS Have to Collect on an IRS Balance Due?

April 23, 2026September 24, 2021 by Brotman Law

The IRS cannot chase you forever and, due to the 1998 IRS Reform and Restructuring act, taxpayers have a little relief from the IRS collections division’s pursuit of an IRS balance due.

Key Takeaways

The IRS cannot chase you forever and, due to the 1998 IRS Reform and Restructuring act, taxpayers have a little relief from the IRS collections division’s pursuit of an IRS balance due.
Generally, under IRC § 6502, the IRS will have ten years to collect a liability from the date of assessment. After this ten-year period or statute of limitations has expired, the IRS can no longer try and collect on an IRS balance due.
However, there are several things to note about this ten-year rule.

Generally, under IRC § 6502, the IRS will have ten years to collect a liability from the date of assessment. After this ten-year period or statute of limitations has expired, the IRS can no longer try and collect on an IRS balance due.

However, there are several things to note about this ten-year rule. First and foremost, the statute is carefully crafted to read: ten years from the date of assessment. The assessment date is April 15th of the year that the taxes were due or the date the return was actually filed, whichever occurs later.

This means several things. First, there’s no way to reduce the IRS’s statute of limitations by filing your return before April 15th. Second, there’s a pretty severe penalty for late filing in that the ten-year period does not kick in until you actually file your return. Failing to file a return or attempting to hide from the IRS does not relieve you from liability.

Finally, the assessment date can change if you file an amended return or if the IRS has filed a substitute return on your behalf and you file a return to correct it. In addition, if you tried to conceal income or have filed a fraudulent income tax return, the statute of limitations does not apply on trying to collect on an IRS balance due.

How Do I File my Taxes if I am Getting Divorced?

April 23, 2026September 17, 2021 by Brotman Law

So you have passed the brink of no return in your relationship and decided to file for divorce. Before you do, it’s wise to make some financial preparations ahead of your court date. Getting pictures of assets, copies of bank statements and any retirement accounts is a good start.

Key Takeaways

How Should I File My Taxes During a Divorce?
Pros of Filing Jointly
Cons of Filing Jointly
Who is Responsible for Tax Debt in a Divorce?
Resolving Tax Liability with a Former Spouse

Common Tax Issues for Small Businesses

April 23, 2026September 10, 2021 by Brotman Law

Key Takeaways

Business Ownership and Tax Considerations
Underpayment of Taxes and Poor Record Keeping
Misclassification of the Business and Related Issues
An Ounce of Prevention

Small businesses, of which there are thousands in California, spend the highest percentage of time of any business entity preparing and submitting taxes. Federal, state, and local tax requirements are extremely complex and change every year.

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.