In our new ABCast Podcast Episode 10 - California Tax Reporting and Controversy Janathan Allen discusses 3 of the primary California tax agencies: Franchise Tax Board (FTB), the Employment Development Department (EDD) and the California Department of Tax and Fee Administration (CDTFA). In this overview of California taxation, Episode 10 -...
Does an Irrevocable Trust Owe California Taxes
Does an irrevocable trust owe California taxes? This is actually a quite complex question. Generally speaking, California taxes trusts based on "California income." If the trustees and/or beneficiaries reside in California, then California will tax the proportionate income within the trust based upon the allocated income portion of the trust...
The Primary Concerns and Considerations of an IRS Audit
What are the primary concerns and considerations of an IRS audit? What exactly is its fundamental and overriding purpose? Is it -- as an Internal Revenue Service communiqué recently stated -- "a deterrent to … potentially noncompliant taxpayers," or is it primarily and foremost a tool to generate much need...
Many Penalties Accrue When You Fail to File Taxes
Did you know that many penalties accrue when you fail to file taxes? Imagine that you are filing your taxes, and during the course of filing these taxes you discover that you will actually owe the Internal Revenue Service some money. No refund for you -- instead, you have yourself...
What is an IRS Office Audit in San Diego
What is an IRS office audit in San Diego and should you be concerned? The standard IRS audit most of us have heard about is known as a “correspondence” audit. This means the audit takes place at a distance (phone, mail, e-mail, etc.) between the taxpayer, their legal representative and...
How Will Marrying a Non-US Citizen Affect Your Taxes?
How will marrying a non-US citizen affect your taxes? What are some of the hidden issues that the IRS and California tax agencies may raise in an audit? The United States is one of the few countries who tax worldwide income. US taxpayers and expatriates must report all foreign bank...
Is Your Home or Business at Risk During a Tax Collection Process?
Is your home or business at risk during a tax collection process? Let's say that the IRS informed you that you owe the agency money for back taxes or tax debt. This isn't exactly rare, but it isn't exactly common either. When you are informed, it will likely take some...
Change Your Business Model to Avoid Independent Contractor Misclassification
Should you consider A new business model to avoid independent contractor misclassification and associated penalties and financial consequences? The rising number of California Employment Development Department or EDD misclassification audits is skyrocketing. The first thing many EDD auditors are asking is simple: "Do you have any 1099 workers?" If the answer...
The Step Doctrine and How it Applies to California Tax
It is important to understand the step doctrine and how it applies to California tax. The "step doctrine" is a concept that is not directly found in federal or California law, but that has been borne out of Court decisions since the great depression, including a recent case in Orange...