San Francisco IRS Attorney

Written by Sam Brotman, J.D., LL.M. (Taxation), CPA — Managing Attorney, Brotman Law  ·  Updated May 2026

What the IRS Does in San Francisco

The IRS San Francisco Field Examination Office is located at 450 Golden Gate Avenue, San Francisco, CA 94102. This office handles field examinations — in-person audits — for individuals and businesses in the Northern California territory. The IRS Large Business and International (LB&I) division also operates from this territory and covers many Bay Area technology corporations and their high-income employees.

There are three distinct types of IRS contact, and knowing which one you are dealing with changes how you respond:

• Examination letter (audit notice): A CP2000, 30-day letter, or Letter 2205 comes from the IRS Examination division. This is an audit. It involves a specific tax year and a specific set of items the IRS is questioning. Do not respond to an audit notice without reviewing the letter with an attorney first.
• Revenue officer visit: A revenue officer is a field collection employee who knocks on doors, calls directly, and issues summonses. They carry a badge and credentials. A revenue officer contact means there is an existing balance the IRS believes cannot be resolved through normal automated channels. This is a collection matter, not an audit.
• Criminal Investigation (CI) special agent badge: IRS Criminal Investigation special agents conduct criminal tax investigations. If a person identifying themselves as an IRS special agent asks to speak with you, do not answer any questions. Contact a criminal tax attorney before saying anything.

The IRS Automated Collection System (ACS) handles the majority of collection cases by phone and mail before a local revenue officer is assigned. Once a field revenue officer is assigned, the matter has escalated beyond ACS and typically requires formal representation.

Common IRS Issues in San Francisco

Tech Stock Compensation — RSUs, Stock Options, and Deferred Comp

Bay Area technology employees and founders have some of the most complicated individual tax returns in the country, and the IRS knows it. Three areas come up in examination consistently:

RSU taxation: Restricted stock units are ordinary income in the year they vest under IRC § 83, at the fair market value on the vest date. The income is reported on Form W-2 as wages. The cost basis for subsequent sale is that same vest-date value. When employees sell at a gain and under-report basis, or fail to account for supplemental withholding gaps, the IRS issues a notice.

Incentive stock options and AMT: Under IRC § 422, the exercise of an ISO does not trigger regular income tax — but the spread between the exercise price and fair market value is an alternative minimum tax preference item under IRC § 56. Bay Area employees who exercised large grants in a high-valuation year have faced six-figure AMT bills on paper gains. If the stock subsequently declined, there may be AMT credit carryforward relief under IRC § 53, but that calculation requires careful reconstruction of prior-year returns.

Deferred compensation arrangements: Executives at Bay Area companies often have nonqualified deferred compensation plans subject to IRC § 409A. A plan that fails § 409A results in immediate income inclusion, a 20% additional tax, and interest — regardless of whether any cash has been distributed. IRS examination of § 409A compliance has increased as deferred compensation balances in tech companies have grown.

Real Estate Investors — Capital Gains and FTB Interaction

Bay Area real estate investors face both IRS capital gains issues and California FTB issues simultaneously, which is a different problem than investors in most other markets.

A 1031 like-kind exchange under IRC § 1031 defers capital gain on the sale of investment real estate if the exchange is properly structured. The identification window is 45 days; the exchange must close within 180 days. The IRS examines 1031 exchanges for basis allocation errors, improper use of exchange proceeds, and boot recognition. The FTB has its own 1031 rules that largely conform to federal law, but California does not recognize out-of-state 1031 exchanges unless the taxpayer files a California Clawback Agreement. Bay Area investors doing 1031 exchanges into out-of-state property need to understand that California retains the right to tax the deferred gain when the replacement property is eventually sold.

International Executives — FBAR, FATCA, and Foreign Subsidiary Reporting

The Bay Area has a large population of U.S. taxpayers with foreign financial accounts, foreign compensation, and international business interests, all of which carry federal reporting obligations.

A FinCEN Form 114 (FBAR) must be filed annually by U.S. persons with foreign financial accounts that exceeded $10,000 in aggregate value at any point during the year. Willful failure to file carries civil penalties up to the greater of $100,000 or 50% of the account value per violation. The IRS LB&I division coordinates with FinCEN on FBAR enforcement, and Bay Area executives at multinational companies are a consistent enforcement target. FATCA reporting obligations under IRC § 6038D (Form 8938) overlap with FBAR requirements but are not identical — both may apply.

IRS LB&I and Bay Area Technology Companies

The IRS Large Business and International division covers many Bay Area technology corporations and their affiliated high-income employees. LB&I audits tend to be comprehensive and resource-intensive. They often involve transfer pricing issues under IRC § 482, research credit claims under IRC § 41, and executive compensation arrangements. If your company has received an LB&I audit notice, the timeline and scope are different from a standard field examination — and the representation requirements are as well.

Federal Tax Court for San Francisco Taxpayers

The U.S. Tax Court holds regular sessions in San Francisco, typically at the federal courthouse at 450 Golden Gate Avenue. Tax Court is the primary forum for contesting an IRS deficiency determination without first paying the disputed tax.

When the IRS issues a Notice of Deficiency (sometimes called a "90-day letter"), the taxpayer has 90 days from the date of mailing to file a petition with the Tax Court under IRC § 6213. If the 90-day window passes without a petition, the IRS can immediately assess and collect the deficiency. There is no extension of the 90-day deadline and no equitable exception for missing it — the Tax Court loses jurisdiction and the only remaining option is to pay the tax and file a refund claim in federal district court or the Court of Federal Claims.

Most Tax Court cases settle at the IRS Appeals level before they reach a trial session. Filing a Tax Court petition is not a commitment to go to trial — it is the legal step that preserves your rights and opens the door to a settlement conference with an IRS Appeals Officer. For Bay Area taxpayers, Tax Court sessions in San Francisco mean that if a case does proceed to trial, there is no need to travel to another city.

IRS Collections in San Francisco

The IRS collects unpaid tax balances through two channels: the Automated Collection System (ACS) and field revenue officers. How a Bay Area taxpayer's case is handled depends on the balance owed, the age of the debt, and whether prior resolution attempts have failed.

ACS is the IRS call center that manages most collection cases. ACS issues balance-due notices, establishes installment agreements for smaller balances, and handles routine collection correspondence. ACS employees cannot visit you at home or your business — they work by phone and mail.

Field revenue officers are different. A Northern California revenue officer assigned to your case works out of one of the IRS field offices in the region and can appear in person, issue a summons for financial records, file a Notice of Federal Tax Lien, and recommend a levy on wages or bank accounts. Revenue officer assignment typically means ACS has been unable to resolve the balance, the balance is substantial, or there is a history of non-compliance. When a revenue officer contacts you, the appropriate response is to get an attorney involved before the first meeting.

Resolution options in a collection matter include: an installment agreement under IRC § 6159, an Offer in Compromise under IRC § 7122 (settling for less than the full balance), Currently Not Collectible status under IRM 5.16, or — in cases where the Collection Statute Expiration Date is approaching — a strategy around the 10-year collection window under IRC § 6502. The right option depends on the taxpayer's financial situation and the specifics of what the IRS has assessed. See our full guide on IRS collections defense for more detail.

About Sam Brotman

I am the managing attorney of Brotman Law, a California tax law firm I founded in San Diego in 2013. I hold a J.D., LL.M. in Taxation, and CPA license. The LL.M. in taxation is a postgraduate law degree specific to federal tax practice — it is the credential that distinguishes tax attorneys from general practitioners who also handle tax matters.

I am admitted to practice before the U.S. Tax Court, the U.S. District Court for the Southern District of California, and all IRS divisions under Form 2848. Since 2013, Brotman Law has represented over 400 clients in audits and recovered or saved $1B+ in taxes and penalties. San Francisco and Bay Area clients are a regular part of that practice — not an exception to it.

Most Bay Area clients work with me by phone and video. I travel for Tax Court sessions and IRS proceedings that require in-person attendance. You can reach our office at (619) 378-3138. For an initial conversation about your IRS matter, book a free 15-minute call.