Brotman Law — IRS audit defense attorneys in San Diego

Tax Strategy

California Income Tax Audit Strategy

A strategic overview of how Brotman Law approaches california income tax audit cases.

At Brotman Law, we focus on providing as much as we can for our clients. Our strategy pages give you a detailed look at how we approach each type of tax issue – so you can understand what to expect when you work with us.

  • Filter by content type Blog
  • Videos
  • Case Studies
  • Guides
  • Testimonials

Tax Strategy & Optimization

  • Business Tax Optimization
  • Individual Tax Optimization
  • Residency & Multi-State Tax Issues
  • Exit Planning and Other Corporate Transactions
  • Real Estate and Investment Portfolio Optimization

Tax Defense

  • Criminal Tax Defense
  • IRS Audits
  • California Income Tax (FTB)
  • California Sales, Use, and Excise Tax (CDTFA)
  • California Payroll Tax (EDD)
  • IRS Tax Debt Resolution
  • California Tax Debt Resolution
  • Other State Tax Representation

Employee Retention Tax Credit

  • Employee Retention Tax CreditFilings
  • Employee Retention Tax CreditAudits
  • Employee Retention Tax CreditAppeals
  • Employee Retention Tax CreditLitigation

Other Complex Tax Issues

  • International Tax Controversy and Compliance
  • Multi-State Tax Compliance and Voluntary Disclosures
  • Divorce/Legal Separation Tax Issues
  • Cryptocurrency Tax Issues
  • Cannabis Tax Issues
  • Tax Promoter/Tax Shelter Issues
  • Complex Tax Preparation
  • Other Insights

Full IRS Tax Audit Representation Services

If you get an audit notice, a tax attorney can develop strategies to safeguard your interests and reduce penalties. Most taxpayers are far from happy upon receiving a tax audit notice from the IRS. However, you can get relief through retaining IRS tax audit representation services in all states. Whether you’re self-employed, a small business or corporate owner, you have a right to representation in tax-related matters. IRS ... <a title="Full IRS Tax Audit Representation Services" class="read-more" href="https://sambrotman.com/blog/irs-tax-audit-representation/" aria-label="Read more about Full IRS Tax Audit Representation Services">Read more</a>

What Happens if You Get Audited &#038; Don’t Have Receipts for IRS?

The Internal Revenue Service checks thousands of taxpayer returns for accuracy every year.

Tax Evasion Penalties Guide & Tax Fraud Jail Time Sentences Blog

Tax Evasion Penalties Guide &#038; Tax Fraud Jail Time Sentences

Can you serve tax fraud jail time? Learn about tax evasion penalties, possibility of a prison sentence for crimes, fines & other tax return laws & punishment

What Income Sources Are Subject to California State Tax? Blog

What Income Sources Are Subject to California State Tax?

Before you file your California state income taxes, read this. You might be surprised to learn what types of earnings are considered taxable.

What Are IRS Allowable Living Expenses? Blog

What Are IRS Allowable Living Expenses?

Afraid the IRS is going to take your house? We explain what property the IRS will let you keep if you owe back taxes.

IRS Audit Red Flags 2023: 25 Tax Return Audit Risk Factors

25 IRS audit red flags that you can avoid! The most common red flags for IRS audits & how to reduce or eliminate these IRS audit risk factors on your tax return

How to Create an IRS Audit Strategy

While not as frightening as you may imagine, IRS audits are serious matters. Can you strategize to address the issues before your auditor does?

IRS Audit Penalties: What Happens if You Get Audited &#038; Fail?

What happens if you get audited and fail? 3 IRS audit penalties (& common reasons for tax audit penalties & fees when you are found guilty or owe money)

How to Request IRS Audit Reconsideration (Sample Letter Included)

Sending an IRS audit reconsideration request? Here's an audit reconsideration letter sample template, where to send the forms & how long the process takes

IRS Audit Appeal Process: How to Appeal IRS Audit Findings

Need to know how to appeal IRS audit findings? Our IRS audit appeal guide details how to fight the IRS and win a dispute, how long an IRS appeal takes & more

IRS Audit Attorney: Our IRS Audit Lawyer Representation Fees

Need an expert IRS audit attorney? Our best in class IRS audit lawyers can help! See how much average IRS tax audit representation fees are, then decide.

Why does the IRS audit tax returns? (&#038; chances of being audited)

Why does the IRS audit tax returns? Here are 10 IRS audit triggers that increase the chances of you being audited, & what to do if you get audited by IRS!

Types of Tax Audit: 4 Different Types of IRS Audits &#038; Purposes

What you must know about the different types of tax audit including correspondence, office, field, TCMP & the purposes of each of the types of IRS audits

What Happens During the IRS Audit Process?

What are the circumstances in which the IRS examines, or “audits,” to determine if reported income, expenses, and credits have been reported accurately by the taxpayer?

The Ultimate Guide to IRS Audits

Have you recently received notification from the IRS or are you in the middle of a critical IRS audit? Here’s what you need to know.

Penalties For Non-Willful Violations Blog

Penalties For Non-Willful Violations

Did you know you are required to file a FBAR form if you have overseas accounts? If not, you could be in trouble with the IRS. Find out how to prove your innocence and avoid steep penalties.

RESULTS PER PAGE

  • 10
  • 25
  • 50

Get Our Strategy Overview

Download our complete strategy overview — free.

Your email is confidential. We respect your privacy and will never share your information.

The Audit Process Step by Step

Here's what happens from the moment you receive an audit notice to resolution:

  1. Notice received — The IRS sends a letter explaining what they're examining and what documentation they need
  2. Power of Attorney filed — We sign Form 2848, which means the IRS talks to us, not you
  3. Document review — We review every document before anything goes to the IRS. We provide exactly what's needed — nothing more
  4. Examination — The IRS reviews your records. For office and field audits, we attend all meetings in your place
  5. Proposed adjustments — If the IRS wants to make changes, they issue a written proposal. We review it line by line
  6. Negotiation or appeal — We challenge anything we disagree with. If we can't resolve it at the exam level, we take it to appeals
  7. Resolution — Case closed. We make sure you understand the outcome and what it means going forward

Why You Need Professional Representation

Here's the reality: anything you say to the IRS can be used against you. Even an innocent statement can be misinterpreted, taken out of context, or used to expand the scope of your audit.

Your CPA probably filed your return. That's great. But filing a return and defending one are two completely different skills. You wouldn't send your dentist to perform heart surgery — the same logic applies.

A qualified tax attorney knows IRS procedures inside and out, understands the legal standards the IRS must meet, and knows exactly how to position your case for the best possible outcome.

Appeals & Next Steps

If you disagree with the audit results, you have the right to appeal. The IRS Office of Appeals is independent from the examination division, and they settle the majority of cases they hear.

We've won over 100 appeals by building cases that are thoroughly documented and legally sound. The key is presenting a clear, well-organized argument that makes it easier for the appeals officer to rule in your favor.

If appeals doesn't resolve it, the next step is Tax Court. We're prepared for that too, but in our experience, most cases settle well before they get to trial.

How to Prevent Future Audits

Once your audit is resolved, the last thing you want is another one. Here's what we recommend to minimize your risk:

  • Keep meticulous records — especially for deductions and business expenses
  • Report all income — even if you didn't receive a 1099
  • File on time, every time
  • Use actual calculated figures rather than round numbers — while not a major audit trigger on its own, it's a best practice that signals accuracy in your records
  • Work with a qualified tax professional who understands your situation
  • Consider a proactive tax strategy engagement to optimize your structure and reduce risk

Want to make sure this doesn't happen again? After resolving your audit, we can help restructure your taxes to minimize future risk. It's the other side of what we do — and it's just as important as the defense. Learn about our tax strategies →

Related Resources

View Our California FTB Defense Services →

Read the FTB Collections Guide →

Frequently Asked Questions

California Income Tax Audit Strategy FAQs

How is a California income tax audit different from an IRS audit?

California's Franchise Tax Board (FTB) conducts its own audits independently from the IRS. The FTB often piggybacks on IRS audit results but can also initiate audits based on California-specific issues like residency disputes, state tax credits, and conformity differences between California and federal tax law. California also has different statutes of limitations and penalty structures than the IRS.

Can the FTB audit me if I moved out of California?

Yes, and this is one of the most common California audit issues. The FTB aggressively audits taxpayers who claim to have left the state, especially high-income earners. They examine factors like where you maintain your closest social and economic ties, where your spouse and children live, where you vote, and where you spend the majority of your time. Simply changing your address is not sufficient to establish a change of domicile.

What happens if I ignore an FTB audit notice?

If you fail to respond, the FTB will issue a Notice of Proposed Assessment (NPA) based solely on the information they have, which almost always results in the maximum possible tax liability plus penalties and interest. You then have only 60 days to protest the NPA before it becomes final. Acting quickly preserves your ability to present your case and negotiate a fair outcome.

Does California conform to all federal tax deductions?

No. California does not conform to several major federal provisions. For example, California does not allow the Section 199A qualified business income deduction, has different rules for depreciation (does not follow bonus depreciation), and does not conform to federal rules on Opportunity Zone deferrals. These conformity gaps often create audit exposure when taxpayers assume their California return should mirror their federal return.

As Featured In & Recognized By
Super Lawyers The Wall Street Journal The New York Times Reuters Inc. 5000 Forbes Business Council

Get Started Today

Book Your Free 15-Minute Call

Schedule a brief call with our team to discuss your situation. We'll assess where things stand and outline your options — confidentially and without obligation.

  • Completely confidential — protected by attorney-client privilege
  • Every situation is different — you'll receive a custom assessment tailored to yours
  • Same-day and next-day appointments available