Tax Collection

Tax Representation
Inaccurate tax reporting may result in substantial federal and state taxes, penalties and interest, as well as the seizure of assets. When a business entity or an individual is delinquent in Federal Tax payments or State Tax payments, our attorneys can assist in resolving the debt. Panitz & Kossoff, LLP tax litigation attorneys regularly represent clients before state and federal tax collection authorities to develop a tax payment plan that enables the client to fulfill the obligation. Depending on the type of taxes owed and the age of the liability, the options include installment agreements, offers in compromise, and bankruptcy.

Sales and Use Tax Disputes
If sales tax applies to the sale of an item in California, use tax applies to the purchase of a similar item from an out-of-state purchaser. The use tax has been on the books since 1933. The use tax applies to an out-of-state purchase when you use, store, give away, or otherwise consume the item. This is applicable regardless of the point of purchase –over the Internet, by telephone, fax, purchase order or mail. Resolving the issue with the State Board of Equalization can be difficult, and is best handled with legal representation.

Sales Tax in California is the legal responsibility of the business, not the customer. This is unique and different from most states. Businesses are permitted to pass the sales tax onto their customers, but this doesn't change the ultimate responsibility for paying this type of tax. It is also why many businesses will advertise they will pay your sales tax, they are doing you no favors. It is really their sales tax, which they have chosen at the time of the sale not to pass along to the customer. The State Board of Equalization is one of the most aggressive agencies regarding collection of delinquent sales tax, and guiding a client through their labyrinth of administrative proceedings and hearings is our specialty at Panitz & Kossoff, LLP.

Offers in Compromise
An Offer in Compromise (OIC) may be appropriate when financial options are limited and more is owed to the Internal Revenue Service or a state taxing agency than can ever be repaid. An OIC allows a taxpayer to pay only a portion of what is owed, requiring detailed documentation and often significant negotiating with the IRS. This is best handled with legal representation.