Tax Lawyers in San Francisco Bay Area

Christopher P. Housh, EA

San Francisco California Enrolled Agent

Sales and Use Tax for Manufacturers in California

by Chris Housh 10. September 2013 17:27

Seminar Event Date:

San Francisco, CA • December 10, 2013

Get crucial tax strategies you need to lessen sales and use tax liabilities for California manufacturers.

Manufacturers may qualify for numerous exemptions and exclusions from sales and use tax, which may greatly reduce overall costs. Increased interest in sales and use tax collections make it more important than ever for California manufacturers to ensure compliance in order to avoid substantial liabilities. Failure to meet all of the documentation requirements may result in the assessment of tax, penalties, and interest.

This seminar will contain an in-depth review of sales and use taxes as they apply to manufacturers doing business in California, along with many of the common opportunities and pitfalls that frequently surprise businesses operating in the manufacturing industry. Register today to sharpen your skills and learn ways to operate within the rules to reduce sales and use tax liabilities.

Benefits for You

  • Discover how to maintain documentation to facilitate audit preparedness
  • Machinery, equipment, inventory and consumed materials – learn what’s
    exempt and what’s not
  • Learn when nexus rules apply to manufacturers
  • Understand where use tax applies to manufacturers

Read more, download the pdf document

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Events & Seminars

Timing is Everything: IRS Audit & Removal of Tax Penalties

by Chris Housh & Steve Moskowitz 15. May 2013 15:36

We were contacted by a couple from Livermore, CA because the IRS had audited their income tax return.   The IRS threatened and disallowed their entire mortgage interest deduction.   This meant that the IRS audit regarding their tax deductions resulted in a tax bill of $33,954 plus a $6,790 tax penalty.

Luckily, this couple contacted our tax law firm based on the IRS notice.   They thought they wanted an Offer in Compromise.   Once we met with them and discussed the facts of their case, we believed that they were entitled to the majority of the tax deductions and that the IRS was wrong.   Because they contacted us in time, we recommended that they fight the IRS audit.  We also recommended that they not pursue an Offer in Compromise, as we believed that they likely did not owe the tax the IRS claimed they did and that an Offer in Compromise would actually be detrimental to their credit and overall financial position.

They hired our tax law firm to defend them against the IRS audit.  Steve and Chris represented them before the IRS audit division, argued that our clients were entitled to their deduction, and WON.   This lowered the tax from $33,954 to $7500.  Additionally we fought the tax penalty and WON that too.   The IRS agreed to remove 100% of the tax penalty.

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Success & Experience

Are you required to File 1099s?

by Chris Housh 29. January 2013 09:56

This winter, I was a panel member for a seminar regarding IRS Form 1099 and What you Need to Know.   In preparing for my lecture, I was able to review some of the recent changes in 1099 requirements.  Now, since 1099s are due by February 28th, many of our clients are wondering if they are required to file 1099’s.  Below is a brief description of compliance requirements.   By no means is this comprehensive and it is not meant to take the place of specific advice regarding your specific tax situation.  Therefore, please do not hesitate to contact me if you have any questions or concerns.    

Who must file form 1099?

Form 1099-MISC is an IRS form to report  payments over $600 for the year for servicers and merchants who are individuals or partnerships.    Payments made to corporations generally do not require a 1099 be issued, however, it may be good practice to do so.  

While onetime payments over $600 may be memorable, it is important to note that the filing threshold is $600 for the year.   For instance, it is not uncommon to have a repairman out early in the year, pay him less than $600, and then use his services again later and have the total for the year exceed the $600 limit. As a result, you overlook getting the information needed to file the 1099s for the year. Therefore, it is good practice to have individuals who are not incorporated complete and sign the IRS Form W-9 the first time you use their services.   Penalties for failing to file 1099s or filing inaccurate forms have increased recently and range between $30 - $250 per form, depending on the situation.  

One way to minimize the risk of compliance problems is to have a properly completed and signed Form W-9s for all independent contractors and service providers.   IRS Form W-9 is an IRS form that allows you to obtain the data required to file the 1099s for your vendors. It also provides you with verification that you complied with the law should the vendor provide you with incorrect information.  To avoid a penalty, copies of the 1099s must to be sent to the IRS by February 28, 2013.

The tax attorneys, CPAs, and Enrolled Agents at Moskowitz LLP, A Tax Law Firm have successfully prepared tens of thousands of current year and delinquent individual income tax returns, corporate tax returns, partnership tax returns, trust tax returns, and estate tax returns. Our goal is to aggressively and legally limit the tax bills of our clients.   Part of this is advising businesses on tax planning techniques and how to comply with all tax laws so that you avoid penalties for non-compliance.      There may be significant advantages in having our law firm prepare your tax returns for any year in which large or complicated transactions occurred. Our office could advise you on the advantages and disadvantages we believe would apply to you in taking certain positions on your tax returns.

I welcome the opportunity to speak with you regarding your 1099 filing obligations, individual and business tax situation, or any other tax matter.

Disclaimer:  Because of the generality of this blog post, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Prior results do not guarantee a similar outcome. Furthermore, in accordance with Treasury Regulation Circular 230, we inform you that any tax advice contained in this communication was not intended or written to be used, and cannot be used, for the purposes of (i) avoiding tax related penalties under the Internal Revenue Code, or (ii.) promoting, marketing, or recommending to another party any tax related matter addressed herein.

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Britney Spears labeled tax delinquent by FTB

by Chris Housh 30. November 2012 14:31

Britney Spears allegedly owes back taxes.

It's no secret that popstar and American Idol judge Britney Spears has experienced a few ups and downs in her career. However, it seems like her troubles aren't behind her just yet. According to reports, the Louisiana native has caught the attention of the California Franchise Tax Board (FTB).

Celebrity news source TMZ recently obtained documents indicating that the FTB has issued a tax lien against the singer - as well has her former husband Kevin Federline - for unpaid back taxes from 2004. The media outlet states that Spears and Federline owe the state $37,712 altogether for the year.

As TMZ notes, 2004 was a profitable one, both for Spears and Federline, who married that same year. Spears embarked on her much-lauded and highly successful Hotel Onyx concert tour, and also released a compilation of her greatest hits, "The Best of Britney Spears." Meanwhile Federline, then a backup dancer, earned a role in the movie "You Got Served," which grossed $48,631,561 at the box office.

Spears and Federline join the ranks of Dionne Warwick, Steven Seagal and O.J. Simpson, other high-profile individuals who have recently come under fire for allegedly failing to comply with California tax laws.

However, in this instance, a representative speaking on behalf of Spears says the tax lien was a mistake, and that the tax delinquency charges against the celebrity are untrue.

Whether Spears and Federline acquiesce and pay off the specified amount, or choose to fight the action in court, they could benefit from the aid of a licensed tax lawyer. At Moskowitz LLP in San Francisco, our knowledgeable tax attorneys can help California residents resolve tax issues with the FTB and IRS.

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Chris Housh is an Enrolled Agent with Moskowitz LLP | Disclaimer | Copyright ©2012 Moskowitz LLP all rights reserved.