What does each taxpayer want?
A taxpayer wants to be left alone after they report their taxes to the federal or state government.
All taxpayers want freedom from worry or stress about:
- earning enough money to pay their taxes, which are often one of the taxpayer’s largest expenses of the year.
- reporting their taxes on tax returns to the proper government.
- being audited by the taxing authority about these returns, which usually means an increase in the taxpayer’s tax liability.
- collection actions (a lien or a levy) taken by a taxing authority to collect an unpaid tax.
- the time, cost, and hassle of discussing their tax issues with a tax professional to resolve them
- the time, cost, and hassle of resolving tax disputes with taxing authorities.
Who is the Villain?
Any event that reduces a taxpayer’s ability to earn enough money to pay their taxes.
The taxing authority (IRS, FTB, EDD, CDTFA, SBOE, county treasurer) that requires tax returns to be filed and who is responsible to collect these taxes.
The hassle, cost, and time spent by the taxpayer to comply with tax reporting laws and to deal with the taxing authority over disputes about the amount of tax owed by the taxpayer.
How does Madison Law guide the customer?
Madison Law, APC Represents Taxpayers With Tax Issues
Madison Law, APC has the knowledge and experience to advise you on a strategy to resolve your tax disputes: either negotiating with the tax authority to settle or pursuing litigation to resolve the dispute, or both. Regardless of the strategy used, Madison Law, APC is prepared to relieve you from the hassle and burden of dealing with the taxing authorities to resolve your tax problems by representing taxpayers all the way from the administrative level through litigation if the administrative process does not solve the problem.
Madison Law, APC has experience in representing taxpayers before the Internal Revenue Service (“IRS”); California Franchise Tax Board (”FTB”); California Employment Development Department (“EDD”); California Department of Tax and Fee Administration (“CDTFA” formerly known as the Statement Board of Equalization (“SBOE”)) and county treasurers to resolve tax disputes in the following areas:
- Audits for all types of taxes (i.e. income taxes, employment taxes, sales taxes, estate and gift taxes, property taxes, penalties, and interest) for all types of taxpayers (i.e. individuals, shareholders, LLC members, partners, corporations, LLC’s, partnerships, and others).
- Negotiating installment agreements (to pay the tax in full in 5 years), offers in compromise (to pay only a portion of the tax liability because of indigent circumstances); uncollectible status (tax is deemed not collectible because of taxpayer circumstances); and innocent spouse (spouse at issue was not involved in the preparation and filing of the tax returns).
- Collection Due Process cases where the taxpayer seeks to stop a levy from occurring or a tax lien from being recorded against the taxpayer’s assets.
- Litigation against taxing authorities in California courts or federal courts to recover over-charged tax liabilities as a refund for the taxpayer for all types of taxes. Unless a taxpayer files bankruptcy or seeks a decision from the US Tax Court, all federal taxes disputes require the taxpayer to pay the amount demanded by the Federal Government until the Tax Court or the Bankruptcy Court rules against the government. All California tax disputes require payment in full of the amount demanded by the State of California unless the taxpayer files bankruptcy to have the bankruptcy court decide the correct tax amount.
- Litigation above also includes lawsuits over disputes about:
- innocent spouse classification;
- employee verses independent contractor classification,
- prevent tax lien foreclosures,
- responsible party assessments (i.e. personal liability) for unpaid payroll and sales taxes of business entities,
- illegal levies
Madison Law, APC Represents Taxpayers In Bankruptcy Court: A Favorable Tax Resolution Forum
Bankruptcy cases are an opportunity for taxpayers to resolve their tax problems. A bankruptcy case has three advantages over all other forums to resolve tax problems: (1) bankruptcy court is the only forum where a judge will resolve a tax dispute while accounting for the taxpayer’s financial condition; (2) a taxpayer does not pay the tax until the bankruptcy judge determines its correct amount; and (3) taxpayers win more than a majority of their tax disputes in bankruptcy cases. There is no other court proceeding with these benefits for a taxpayer to resolve their federal and state tax disputes, except the U.S. Tax Court where tax claims are not paid until decided. Madison Law, APC has experience in representing taxpayers in matters, such as:
- Providing advice to taxpayers or their attorneys about whether the tax liabilities owed by the taxpayer are dischargeable in bankruptcy proceedings.
- Negotiating and litigating the correct amount and treatment of tax claims in bankruptcy cases.
- Whether a taxpayer should file a bankruptcy case to resolve tax disputes and pay taxes.
- Litigating tax claims in bankruptcy cases.
Madison Law, APC Represents Taxpayers Before The California Department Of Fees And Taxation (“CDFT”; formerly the SBOE)
Madison Law, APC represents taxpayers who are (1) being audited for sales and use taxes; (2) involved in administrative appeals before the CDFT and SBOE for sales and use tax liability or for personal liability against responsible persons; (3) litigating for refunds for overcharged sales and use taxes.
Madison Law, APC Represents Taxpayers In Property Tax Matters
Property tax is assessed and collected in the county where the parcel of real estate is located that is assessed with this tax. Madison Law, APC represents taxpayers involved in property tax issues, such as documentary transfer taxes on real estate transfers, assessment disputes, and change of owner disputes.
Madison Law, APC Helps Taxpayers Plan Their Taxes
Madison Law, APC is experienced in providing tax planning advice. Examples of such advice include California retailers are overcharged sales tax on repossessed merchandise sales; self-directed IRAs, incentive stock options, sales of businesses, debt settlements, foreclosures, asset dispositions, asset sales, ownership sales, and discharged debts in bankruptcy.
A frequent matter often overlooked in business and real estate transactions is the tax incurred by such a transaction. Without tax planning, parties to these transactions often end up paying more taxes than if they obtained tax planning advice. To avoid this outcome, contact Madison Law, APC so it can determine if any tax planning can minimize -- or eliminate -- taxes in the transaction at issue.
Madison Law, APC provides tax planning to taxpayers involved in real estate transactions to defer taxes under a “Section 1031 Like Kind Exchange”. Madison Law, APC can provide you with (1) an analysis of the tax impact your current transaction will have verses a Section 1031 Like Kind Exchange; (2) an explanation of how to defer any capital gains tax under this section on your transaction; (3) assistance in identifying replacement properties with a real estate professional.
If you are contemplating selling your business, please contact Madison Law, APC to plan the tax effect that such a sale will have on its owners before entering into a contract to sell the business.