When dealing with the upper echelon of IRS and California tax collections, you must be proactive or risk the government coming in and taking action against you or your business.
At Brotman Law, all we do is tax and high stakes tax defense. Our tax action planning process is designed to discuss your goals, analyze your risk, and to build a plan to address the government while still creating space to grow your business and to live the quality of life that you and your family deserve.
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The federal government has given away more than three trillion dollars in COVID relief funds. California has been decimated economically by COVID and is facing a massive budget shortfall. The government's plan for resolving this is devastating simple and straight forward: go after those who owe money in taxes using whatever means available.
Let's face facts: raising taxes in a pandemic is not something that is politically popular. The short term fix for the government is either to 1) broaden the tax base or 2) increase the scope and aggressiveness of collection action. That's it.
Recently, Charles Rossotti (former commissioner of the IRS) and Lawrence Summers (former Treasury Secretary) put forward a plan to spend an additional $100 billion dollars toward IRS enforcement. They estimate that doing that will generate more than $1.2 trillion dollars from taxpayers to fill the government's coffers.
The state of California might be in even worse shape. With a pandemic that has devastated the state's economy and experiencing major drops in sales tax, hotel, and tourism taxes, California is doing everything it can to raise tax revenue.
The biggest problem is that California's administrative tax agencies, due to high barriers to getting into and resolving issues in California state courts, virtually operate with never before seen levels of impunity. Unchecked aggression is never a good thing, but especially because California's tax collection system is designed to facilitate state revenue collection, the threat to taxpayers (particularly businesses) has not ever been this high.
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The critical flaw of thinking for alot of taxpayers is that they have to understand what is going on/will be reasonable/you can negotiate with the IRS/California just like a private party. Rather, government tax collections is a system that is set up to work for the whole rather than the needs of the individual. As harsh as it is to say, the tax man does not care about you as an individual. You are nothing more than a file to them and one of millions of people that owe money to the IRS.
Make no mistake that you are dealing with two of the most powerful collection agencies in the United States. There is a reason people are afraid of the IRS. However, as powerful as they are, like all large organizations, they are constrained by certain limitations. The government cannot simply take unilateral action and the IRS is governed by systems, policies, and procedures. Understanding the system, the procedural hurdles that the government faces, and the humans that work within the tax collection system (and the functions of their job), is the way to achieve a path to resolve your tax issues once and for all.
You know that in business that uncertainty equals risk. We don't like taking risks either when our clients have their business and their ability to take care of their families at stake. If you understand how the playing field works, what the government can and cannot do, and the differences between the ways are written and the way they are enforced, then you can move across the playing field to accomplish your objectives. You may desire to pay them off as quickly as possible or you may be facing cash flow challenges and are looking for some temporary relief. Whatever your goals are, you can build a plan to accomplish your objectives while keeping the government from doing any serious harm.
The biggest problem that we see with cases that involve the IRS or California state tax collections is that the client often delays action and makes the situation that much worse. When dealing with the large dollar collections units, being proactive and going on offense is crucial. The longer you sit out in the open unprotected or try and play defense, the more you are going to expose yourself to potentially devastating collection action even your business effectively shut down by the government.
These issues are technical and difficult to address and are a speciality within a speciality within the area of tax law. Very few firms have the experience being on the front lines of this issue and in dealing with the genesis in this area of law. In order to deal with these issues effectively, you need a legal team who understands not just how the law is written, but how it is enforced.
At the end of the day, legal decisions must be analyzed within a business framework or they are of little value to an organization. Yes, the laws are harsh and the cost of compliance can seem daunting, but this is where our firm excels. You need a team that can think outside the box and who is similarly focused on cost/benefit, risk/exposure, and can help you weigh the best path moving forward.
What do you get with us? A team small enough to provide individualized and personal service for our clients with the ability to really get to know their business. But little hinges can swing some pretty big doors. Our firm is nationally recognized for excellence in tax law and are often quoted by major media publications. We have a wide range of experience guiding organizations across industries and those who range in size from start-up to hundreds of millions in annual revenue. That lead us in 2018 to be recognized as the 14th fastest growing law firm in the United States.
As I like to say, our tax experience is an inch wide and a mile deep. We only focus on a few select areas in tax, but we have a depth of experience in our chosen areas of practice and in helping navigate the deep and complex waters that exist in this area of law.
I look forward to meeting you, discussing your company's situation, and, at the very least getting you pointed in the right direction.
When dealing with the upper echelon of IRS and California tax collections, you must be proactive or risk the government coming in and taking action against you or your business.
At Brotman Law, all we do is tax and high stakes tax defense. Our tax action planning process is designed to discuss your goals, analyze your risk, and to build a plan to address the government while still creating space to grow your business and to live the quality of life that you and your family deserve.
What to expect:
Brotman Law
402 W Broadway, Suite 2900
San Diego, CA 92101
Phone: 619-378-3138
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IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, I must inform you that any U.S. federal tax advice contained in this website is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter contained in this website.