Sacramento Tax Attorney
IRS & California Tax Defense

Yes. Sacramento's large state employee population faces several distinct tax issues. CalPERS retirement benefits have specific California and federal tax treatment that varies depending on when contributions were made and whether the employee has moved out of state. State employees who receive deferred compensation through the Savings Plus Program (457(b) plans) must carefully manage distributions to avoid unnecessary tax exposure. Additionally, state employees who work remotely from other states — which became common after 2020 — may face multi-state tax obligations that California does not automatically resolve. If you're a current or retired state employee dealing with a tax dispute related to your pension, deferred compensation, or multi-state work arrangements, our team can help you navigate the specific rules that apply to your tax situation.

The advantage is not about physical proximity — it's about experience working with headquarters-level staff. CDTFA and EDD headquarters offices in Sacramento handle the most complex cases, set statewide policy, and employ the most experienced auditors and hearing officers. An attorney who regularly works with these offices understands their internal processes, their audit methodologies, and their settlement authority in ways that attorneys who only deal with regional offices may not. Brotman Law has represented hundreds of clients before these agencies' headquarters offices. We know how cases flow through the system, where the decision points are, and how to position your case for the best outcome — regardless of whether we're physically in Sacramento. All interaction with these agencies happens by correspondence, phone, and virtual meetings, which is standard for all California tax representation.

Government contractors in Sacramento face tax risks on multiple fronts. The IRS scrutinizes government contractors for proper income reporting, especially when contract structures involve cost-plus arrangements, time-and-materials billing, or subcontractor relationships. Worker classification is a major risk — if you use subcontractors to perform government work, the EDD may challenge those relationships and assert that your subcontractors are actually employees, triggering back payroll taxes, penalties, and interest. The CDTFA may also audit contractors for sales and use tax on materials purchased for government projects, since government contracts can have complex exemption rules. And the FTB examines whether out-of-state contractors performing work in California have properly sourced their income to the state. If you're a Sacramento-area government contractor facing any of these issues, our audit defense team and payroll tax practice can protect your interests.

If you've received a notice from the Franchise Tax Board at their Rancho Cordova headquarters, the first step is to read it carefully and note any deadlines. FTB notices can range from simple information requests to formal audit notices to collection demands — and the appropriate response depends on the type of notice. Do not ignore it. California tax agencies assess penalties and interest rapidly, and missing a response deadline can limit your options. Do not call the FTB and provide information without first consulting an attorney — anything you say can be used to increase your assessment. Contact a California tax attorney who can review the notice, advise you on the best response strategy, and handle all communication with the FTB on your behalf. Most FTB matters can be resolved without ever visiting the agency's office in person.

When the CDTFA audits a Sacramento business, the process typically begins with an audit notification letter identifying the audit period (usually three years) and requesting initial records. A CDTFA auditor — often from the headquarters office for Sacramento businesses — will review your sales records, purchase records, bank statements, and point-of-sale data. They may use statistical sampling, markup analysis, or other methodologies to estimate unreported sales tax. The auditor will issue a preliminary assessment, and you have an opportunity to respond before a final assessment is issued. If you disagree with the final assessment, you can file a petition for redetermination (an administrative appeal). Having a CDTFA defense attorney involved early in the process — ideally before you respond to the initial audit request — gives you the best chance of limiting the assessment and preserving your appeal rights.

No. For IRS matters, your attorney can represent you from anywhere in the United States. For California state tax matters — including cases before the CDTFA, EDD, and FTB headquarters offices in Sacramento — any California-licensed attorney can represent you regardless of office location. All tax representation is conducted by correspondence, phone, and video conference. Physical proximity to the agency offices is not an advantage; experience with those agencies is. Brotman Law is headquartered in San Diego and has represented hundreds of clients in cases originating from Sacramento-based agency offices. We handle these matters the same way every tax attorney in California does — remotely, efficiently, and with the full weight of attorney-client privilege protecting every communication.