strategies-init Archives - Page 53 of 75

How a Tax Attorney Can Help with Your Tax Lien

April 23, 2026December 21, 2016 by Brotman Law

Key Takeaways

All three agencies can issue a lien against personal property, real or personal, tangible or intangible.
The tax law is not only more complex in California, but the state tax representatives are generally more difficult to deal with.
A tax attorney helps to level the playing field when dealing with the state of California and their representatives.

Our last few posts have been about how the various California state tax agencies handle tax liens.

A brief review:

The Board of Equalization (BOE) administers the sales and use tax.
The Franchise Tax Board (FTB) administers and enforces the individual and corporate state income tax laws and property taxes.
The Employee Development Department (EDD) administers payroll tax and unemployment and disability insurance for the state.

How the Franchise Tax Board Uses Tax Liens

April 23, 2026December 7, 2016 by Brotman Law

We previously discussed how the Board of Equalization handles tax liens. For this post in our series, we would like to talk about how the California Franchise Tax Board addresses the use of liens. There are differences between the way the various California tax agencies and the IRS use tax liens about which you need to take note to stay out of hot water.

How the Board of Equalization Handles Tax Liens

April 23, 2026November 30, 2016 by Brotman Law

In our continuing series about tax liens, we would like to talk about how the California Board of Equalization handles them. While there are similarities between how the IRS and the various California tax agencies pursue, impose, and release tax liens, there are some important differences that every tax payer should be aware of.

Everything You Need to Know About Tax Liens, Pt. 2

April 23, 2026November 23, 2016 by Brotman Law

Everything You Need To Know About Tax Liens 2

In Part 1, you learned what a lien is, how taxpayers are notified of a lien, and what elements are required for a valid lien. In Part 2, you will read how a lien can impact your credit report, who has access to a list of those with liens, and what happens during bankruptcy and other financial events if a lien is involved.

Everything You Need to Know About Tax Liens, Pt. 1

April 23, 2026November 16, 2016 by Brotman Law

The tax community is a house somewhat divided over the effectiveness of liens. On the one hand, the government needs to protect their interests in regards to taxes owed them. On the other hand, tax liens are filed against taxpayers with few or no assets to file a lien against.

California Tax Guide for Marijuana Businesses and Proposition 64: The Adult Use of Marijuana Act

April 23, 2026November 16, 2016 by Brotman Law

Key Takeaways

1. Marijuana related businesses and dispensaries typically deal with large amounts of cash because of the limitations associated with the federal banking system and marijuana business.
2. We anticipate a heightened risk of audit is because this is a “new” industry for the Board of Equalization and there’s not a lot of statistical data associated with marijuana businesses.

On Tuesday, California voters passed historic legislation by voting to allow the recreational use of marijuana in California. Regardless of your opinion about marijuana use, the legislation will have a huge impact on the state of California and its citizens and will bring a large source of new taxable revenue into the state. Because of the complexity surrounding the tax laws surrounding the new measure, I have put together a rough guide of issues for marijuana businesses and California citizens to be aware of.

What’s the Difference Between a Tax Lien and a Tax Levy?

April 23, 2026November 9, 2016 by Brotman Law

Key Takeaways

Aside from these differences, liens and levies are remarkably similar in most other respects.
Liens and levies are filed by the federal and state tax authorities when you neglect or refuse to pay a tax bill you have received from these agencies.
The IRS usually files liens with the county recorder or the clerk of courts in your county of residence or where your property is located. A lien filed by the FTB is against any property you own in California.

Taxpayers often confuse the terms tax lien and tax levy and do not understand the difference in actions represented by these concepts. While liens and levies can both be filed by the IRS and the California Franchise Tax Board (FTB) and there are many similarities to when they are issued and how they can be removed, liens and levies are terms for very different actions.

What Happens When You Miss Your Tax Extension Deadline?

April 23, 2026October 26, 2016 by Brotman Law

Key Takeaways

As long as you did so by October 17, you will be allowed to file electronically.
The consequences of not filing your state or federal income tax return extension or payment are more interest accrued and additional penalties.
If you owe either of these penalties, pay the failure-to-file penalty first as it is the more substantial or the two. Failure to file is assessed at 5% of the taxes not paid by the due date for each month or partial month the return is late.

October 17, 2016, was the last day you can file California State or Federal income tax returns if you were granted the six-month extension in April. It is not the time to panic, but it is definitely time to move quickly if you have not completed your 2015 tax return and payment.

As long as you did so by October 17, you will be allowed to file electronically. However, if you are planning to file an amended return, you must mail it; neither the state nor the IRS allows electronic filing of amended returns.

Keep in mind that any unpaid taxes from 2015 have been accruing penalties and interest since April 18, 2016. You cannot file for another extension; you must file a return.

What Happens If You Misclassified a Worker?

April 23, 2026October 19, 2016 by Brotman Law

Key Takeaways

What does the employment classification of workers have to do with payroll tax audits.
Previously, we have posted about the difference between employees and independent contractors in the eyes of the IRS and the EDD. Here is a quick reminder.
There is an entire list of factors the EDD (and the IRS) use to determine whether or not someone is an employee. No single factor can be used to make the determination.

What does the employment classification of workers have to do with payroll tax audits?

Everything.

When the Employment Development Department of the State of California decides to audit, the classification of your workers is the auditor’s sole concern. Additionally, the IRS often adopts the results of the EDD audit to use in assessing federal penalties.

For this reason, it is critical to classify your workers properly and supply only the information the auditor asks for, nothing more.

What Are Your Payroll Tax Responsibilities?

April 23, 2026October 12, 2016 by Brotman Law

Key Takeaways

Such employers see this as a cost-saving for their businesses because they not only do not have to pay taxes, they do not have to pay for someone to administer employee taxes.
Social Security and Medicare, otherwise known as FICA, is paid quarterly. FUTA, the federal unemployment tax act, requires an annual return. Employers are required to provide an IRS Form W-2 detailing the wage withholdings.
Very small employers, defined as those with an estimated tax liability of $1,000 or less for a calendar year can file annually.

In a previous post, we talked about the difference between independent contractors and employees. One of the biggest differences, and one that often drives intentional worker misclassification, is that employers must withhold and pay payroll taxes for employees whereas they do not for independent contractors.