California Franchise Tax Board (FTB), is responsible for the enforcement of the California income tax laws. Some tax lawyers believe the FTB is more difficult to deal with than that of the Internal Revenue Service (IRS). Our California tax attorneys have extensive experience in negotiating tax solutions for both FTB tax audits and FTB tax liabilities. FTB tax audits are often not tax audits. They simply piggyback on IRS tax audit results. It’s almost a guarantee that if you have an IRS tax audit, the IRS will send the results to the California Franchise Tax Board and that you will receive a bill. It is almost impossible to dispute the results in most cases, but it can be useful in certain situations. Let’s say, for instance, that you didn’t receive timely notice of an IRS tax audit and were therefore stuck with an IRS bill. Our California tax lawyers can file a protest to the FTB if you contact them soon enough. This will stop any enforcement actions. Our tax attorneys can also reopen IRS tax audits in most cases to allow you to present all your information to the IRS. To identify tax problems specific to California income tax law, the California Franchise Tax Board might also conduct a tax audit. The FTB might argue that you were a California resident for some time prior to or after you became California residents to tax you on any large bonuses you received. Our California tax litigators will review your records and advise you on tax representation throughout the process.
The rules regarding net operating loss are another area where there is a difference between the IRS and the California Franchise Tax Board. These rules can be complicated and are subject to change on a regular basis. An IRS tax audit may result in no income tax, but a large tax bill to the FTB. Your California income tax debt could be higher than your IRS tax debt. Los Angeles tax lawyers can help you navigate the maze of differences that exist between California tax problems and IRS tax problems. If it is clear that you owe California Franchise Tax Board, we can negotiate an installment agreement or file an offer to compromise.
This article was written by Alla Tenina. Alla is a top tax attorney in Sherman Oaks California and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.