Business Owners Need to Be Vigilant in Order
to Protect Their Rights, Says CA Law Firm Brotman Law
SAN
DIEGO, July 30, 2024 /PRNewswire/ -- California tax agencies, such as the
Employment Development Department (EDD) and the California
Department of Tax and Fee Administration (CDTFA), have raised the
stakes against California
taxpayers. Although tax collection disputes have been resolved
administratively in the past, business owners may now find
themselves embroiled in litigation against the California
Department of Justice.
Administrative tax agencies in California are set up to administer and
collect the taxes owed to the state. Generally, when an individual
or business owes taxes to the state of California, they would work with that agency
to set up a payment plan, submit an Offer in Compromise, or reach
another agreed-upon resolution. This is especially true for smaller
liabilities of less than one million
dollars because it is more efficient in terms of time and
cost for the state to handle these matters without going to court.
Judicial resolutions in tax cases are generally only used in
high-stakes tax cases or where there is some major risk of loss to
the state. However, because of the general backlog in the
California court system and the
formalities involved with court, resolutions take longer to reach
for both parties and go before a judge who may not have a lot of
experience with tax cases.
However, California has
recently shown more willingness to pursue judicial resolution
against taxpayers, even those who owe relatively small amounts. The
tax agencies in California,
represented by the Civil Division of the California Department of
Justice, have begun to file more lawsuits against individual and
business taxpayers. Once served with a copy of a judicial summons
and complaint, taxpayers are left with two options: hire an
attorney to represent them or go it alone in court.
"It is very unfortunate that California has chosen to seek judicial
resolution against taxpayers for something that really should be
resolved administratively. Taking tax collection matters to court,
especially against taxpayers who owe taxes and may be financially
weakened, creates an unfair advantage for the state," says owner
and managing attorney of Brotman Law, Sam
Brotman. "Taxpayers may not have tens of thousands of
dollars to litigate a tax issue to its conclusion, whereas the
California Department of Justice has a seemingly unlimited budget
of time and money to prosecute the matter. Tax collection issues
generally do not have a significant dispute in terms of material
facts and, as such, there is no reason for the courts to get
involved when a simple financial arrangement is generally all that
is needed."
In spite of this, taxpayers should seek the advice of a
qualified tax attorney rather than choosing to go it alone in
Superior Court. Litigation has rules and is complicated for the
average layperson, who may be unfamiliar with how the litigation
process works. However, the worst thing that the taxpayer can do is
not respond to California's
lawsuit in a timely manner. Failing to respond to a lawsuit will
trigger a default and will result in a judgment against the
taxpayer. Once a court has issued a judgement, it is often too late
to contest the merits and/or work out an amicable payment plan with
the state of California. Further,
if California was aggressive in
pursuing a lawsuit against a taxpayer, they will likely be even
more aggressive in pursuing a judgment.
Brotman Law is a national tax law firm headquartered in
San Diego, California. The firm
has been successfully navigating audits with California tax issues for over 10 years,
finding ways to produce the best possible result for clients even
in situations where matters are incredibly nuanced or difficult.
Brotman Law is available to speak with any business owner or
individual who owes taxes to the state of California and can be reached on their
website.
Contact:
Aliyah Yates
Marketing Manager
Brotman Law
(619) 378-3138
ayates@sambrotman.com
About Brotman Law
Brotman Law is an established team of law professionals that
have been helping clients and their businesses navigate the
intricacies of tax law for over 10 years. The firm has represented
hundreds of California taxpayers
against the Franchise Tax Board, Employment Development Department,
and the California Department of Tax and Fee Administration.
Brotman Law is dedicated to providing every client with exceptional
legal services accompanied by a compassionate approach that is
unheard of in the industry. Beyond just successes with the
California tax agencies, the
Brotman Law team is singularly united by genuine empathy for all
clients, a strong desire to help, and never-say-quit tenacity that
propels the firm to the best possible results on their clients'
behalf. For more information or to book a consultation with the
Brotman Law team, visit SamBrotman.com or call (619)
378-3138.
View original
content:https://www.prnewswire.com/news-releases/california-chooses-to-bypass-the-administrative-process-and-sue-taxpayers-in-superior-court-302210464.html
SOURCE Brotman Law