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State Audit Representation

State Audit Representation

The IRS isn’t the only governmental agency that can send you a notice about your taxes. Agencies such as the California State Tax Audit and the Board of Equalization can also inquire about the taxes you filed.

IRS Audit Group is a team of Tax Attorneys CPA’s and Enrolled Agents who specialized Exclusively in Tax Audit Representation with over 15 years of experience.

We know how difficult it can be dealing with State level tax issues, so we have the most experienced professionals to be your advocate. Our tax attorneys deal with more agencies then just the IRS. They have experience dealing with California businesses such the Board of Equalization, the Employment Development Department (EDD) that deal with payroll tax audits and the Franchise Tax Board that deal with State Tax audits.

 

How we can help you

Our experienced attorneys have the knowledge to properly represent you in your audit. They understand tax law far better then any other licensed professional and they have dealt with numerous cases that may be similar to yours. Even if your case is extremely rare, our licensed professionals will have the skill and the diligence to assess your case and proceed appropriately to give you the best outcome.

 

Three different State Tax Audits

  1. State Sales Tax Audit

The Board of Equalization (BOE) collects sales taxes in California usually on businesses. When they conduct an audit it is because they suspect that the taxpayer has not accurately disclosed all the tax information. They go through different methods depending on the type of business that is under audit. Regardless of the what type of business you’re in the preliminary check that the sales tax auditor conducts include comparing and contrasting the taxpayers books to what they reported as their total sales on their sales tax returns. They will also compare the taxpayer’s books to how much income tax they reported on their income tax returns and they will also compare and contrast how much the taxpayer collected from the California sales tax reimbursement as opposed to what they reported getting reimbursed on the books. Additionally, they will check how much the business owner claimed sales for resale compared to how much they claimed on their resale certificates. Is your head spinning yet? Well the list goes on because this is just a tiny glimpse of what you will have to go through without the right tax attorney representing you. Understanding these methods is time consuming and full of tax jargon. We can help you save time and avoid a massive headache by helping you understand all the steps before going through a sales tax audit.

 

  1. State Income Tax Audit 

The State income tax audit is similar to how the IRS conducts their audits, but instead the Franchise Tax Board is the one overlooking your case. Both the IRS and Franchise Tax Board collect income revenue that is indebted to the government. If your case is selected to be audited, you should contact a tax attorney immediately. Undergoing this process alone is extremely difficult because you must know all your rights as a taxpayer. A tax attorney does indeed know all your rights and they will protect those rights, so you can have a fair examination of your audit. The tax attorney can also request from the Franchise Tax Board written descriptions of the changes they make to your tax return because of the audit. This agency is strict and follows the guidelines meticulously, but it is also their duty to treat you as considerately as possible through the process. With a tax attorney to represent you, your audit will sail smoothly. Your tax attorney will make sure that you don’t overpay by providing installment agreements, tax defense services and settling your tax debt at the state level.

 

  1. State Payroll Tax Audit

The Employment Development Department (EDD) conducts the state payroll tax audits, when they suspect that your business has not accurately reported payroll taxes. The typical process of this type of tax audit starts with an Inquiry Regarding Records notice that informs the taxpayer that their business has been picked for an audit. The taxpayer then has 2 weeks to contact EDD and request an interview with a payroll tax auditor. The notice will also have a Pre-Audit Questionnaire and a list of requested documents that need to be completed the day of the interview. The first interview is called the entrance interview, where the payroll tax auditor will explain to the taxpayer and the tax attorney why their business was selected for an audit and give a run down of how the process works. With a tax attorney representing you, you will already be one step ahead of the whole process since our attorneys have the experience and the familiarity in dealing with state payroll tax audits. The payroll tax auditor will attempt to overreach and claim additional expenses that you are liable for, but you should not get worked up or nervous. Let your tax attorney take the matter into his hands and eloquently handle whatever the auditor attempts to make an obligation for you. Most of the time our lawyers will settle the matter with requesting certain paperwork from you for evidence. Always remember that your attorney has your best interest and they can’t stand in defense against you, so it is wise to do as they say. Allow us to assess your case and recommend the best way to handle it when it comes to your payroll tax audit.

 

Whether you are a taxpayer with a business or not it is wise to hire an attorney to be your advocate. The goal of your attorney is to limit the access the state has to attaining your information. The more they have access to, the longer they can keep the investigation going. They also protect your rights and stop the state from seizing your assets and/or property. A tax attorney will keep your best interest in mind and fight for you to close your case without compensating the state, but when your case is at odds they help you reach the best possible outcome by making the penalty fees as minimal as possible. State audits differ slightly from IRS audits in that there are multiple different types of state audits that usually go hand in hand. It is a difficult job teaching yourself everything and defending yourself in front of this high level agency. It can get quite intimidating and it would take a strong, assertive and confident individual to defend himself or herself at the state level. Why even go through the stress when we can provide you with all of that and the security in knowing that you are in good hands because we’ve got you!