We are your full-service tax resolution team Tax Law Professionals + Accounting Expertise

$1.5 million

ERC Claims Refunded

Successfully recovered delayed ERC refunds For our clients, with several businesses receiving More than $1.5 million each in credits.

$30,000

IRS tax liability removed

Successfully eliminated more than $30,000 in IRS tax debt after uncovering that a ‘quick change’ adjustment had double-taxed our client’s stock option income.

$100,000+

ERC Appeals

Many taxpayer clients have come to our firm with IRS denial letters for the taxpayer’s ERC filings. Multiple of these clients had the tax 2021 Quarter 3 denied. We feel the IRS were issuing blanket rejections of this quarter due to certain state and local governments lifting governmental orders previously imposed due to COVID safety. Our appeals have been successful, resulting in the IRS releasing tens to hundreds of thousands in ERC refund to our clients.

ERC Audits

We have successfully represented taxpayers in audit where the IRS is seeking to take back the refund already received by our clients. Our representation resulted in no change and the taxpayer clients did not have to return any monies.

$1.5 Million

ERC Audits

Many business taxpayers came to our firm dealing with the IRS’s lack of processing their ERC credits. We successfully advocated for our clients with the Taxpayer Advocate Service, local congresspeople, and other IRS avenues. We have been successful securing those refunds for our clients including multiple clients receiving credits over $1.5M.

$40 Million +

California Franchise Tax Board (“FTB”) Audits

Our office has successfully advocated for our clients in audits where the result was no change on the tax returns. Additionally, multiple clients came to our firm acknowledging the FTB’s position was proper and sought our assistance in representing them to close the audit and continue with the eventual collections representation. Instead of resigning our client to agree with the FTB, we examined the client’s returns and records and successfully reduced any new potential liability from the audit. Sample cases include: the FTB taxing an out-of-state shareholder taxpayer who did not report on its non-resident California return the proceeds from $40m+ business sale. We reviewed prior tax returns and determined prior business losses from sales of subsidiary businesses were not used. The FTB auditor accepted use of those losses, which reduced any additional FTB tax liability of tens of thousands of dollars. Another case included the taxpayer client reporting a sale of his home, where he reported a high tax cost basis, which reduces taxable income, on the advice of a prior tax professional. The property had gone through multiple sales and 1031 like-kind exchanges prior the client receiving the property as a gift. Instead of accepting the FTB’s reduced tax basis, we determined the property had hundreds of thousands of property improvements that weren’t reported on the return, which if they were, would have increased basis and reduced the taxable income. Additionally, we found the prior tax preparer reported real estate rental income on two separate schedules on the return, thereby reporting the taxable income twice. The FTB auditor again agreed, and that additional income was removed.

Tax Court Victory – Collections Case

The client came to our Office with a tax liability already in collections. The clients timely filed a Collection Due Process request in response to a notice of intent to levy, requesting a suitable installment agreement. The IRS agent denied our clients' request for an installment agreement and issued a Notice of Determination sustaining the IRS's intent to levy. Our office petitioned the U.S. Tax Court in response to a Notice of Determination arguing improper review of our clients' installment agreement requests amongst other deficiencies. After the IRS answered the petition, our office filed a Motion to Remand with the Court requesting the Court send the case back to appeals to review, arguing Appeals abused its discretion in coming to its determination. It is difficult for taxpayers to win on these motions, but after oral argument, the Court, citing IRS appeals agent's improper review, remanded the case back to Appeals so the clients can have its case heard again by the IRS agent. You can see the Court's opinion here: https://www.taxnotes.com/research/federal/court-documents/court-opinions-and-orders/collection-case-remanded-appeals-consider-ability-pay/7l5df 

$190,000

Employer Development Department (“EDD”) Petition for Reassessment (late filing):

Our office has successfully advocated for our clients in audits where the result was no change on the tax returns. Additionally, multiple clients came to our firm acknowledging the FTB’s position was proper and sought our assistance in representing them to close the audit and continue with the eventual collections representation. Instead of resigning our client to agree with the FTB, we examined the client’s returns and records and successfully reduced any new potential liability from the audit. Sample cases include: the FTB taxing an out-of-state shareholder taxpayer who did not report on its non-resident California return the proceeds from $40m+ business sale. We reviewed prior tax returns and determined prior business losses from sales of subsidiary businesses were not used. The FTB auditor accepted use of those losses, which reduced any additional FTB tax liability of tens of thousands of dollars. Another case included the taxpayer client reporting a sale of his home, where he reported a high tax cost basis, which reduces taxable income, on the advice of a prior tax professional. The property had gone through multiple sales and 1031 like-kind exchanges prior the client receiving the property as a gift. Instead of accepting the FTB’s reduced tax basis, we determined the property had hundreds of thousands of property improvements that weren’t reported on the return, which if they were, would have increased basis and reduced the taxable income. Additionally, we found the prior tax preparer reported real estate rental income on two separate schedules on the return, thereby reporting the taxable income twice. The FTB auditor again agreed, and that additional income was removed.

$490,000

Tax Court Victory

IRS attempted to assess over $408k in additional tax and over $81,000 in penalties for an approximate total of over $490k. This does not include interest that would have started accruing since 2019. The case surrounded whether the client actively participated in real estate activities. If the client was deemed to be a passive actor in the real estate activity, the client would have been limited in real estate losses and other deductions. The result of our tax court representation ended with $0 added liability for the client as we successfully presented our case to IRS counsel and it agreed with our position.

$50,000

ERC Restaurant Success

SITUATION Client is a successful restaurant offering indoor and outdoor sit-down and carry-out service. During the pandemic, the city allows the restaurant to remain open provided that all tables in the indoor dining room must be spaced at least six feet apart. The client mistakenly believes that because the restaurant remains open during the pandemic and its gross receipts are more than 50% of its gross receipts before the pandemic, the restaurant is not eligible for the Employee Retention Tax Credit. STRATEGY Moskowitz LLP analyzes the city’s order and determines that the order restricting the spacing of tables limits the restaurant’s indoor dining service capacity and has more than a nominal effect on its business operations. As a result of the analysis, Moskowitz LLP advises the restaurant that the business operations continue to be partially suspended because the governmental order restricting its indoor dining service has more than a nominal effect on its operations, and the restaurant is therefore eligible for the employee retention tax credit. RESULT As a result of Moskowitz LLP advice, the restaurant files a claim for over $50,000 in employee retention tax credits for three quarters, and the restaurant remains in business and keeps all of its staff.

$264,500

Corporate Dissolution

Client’s restaurant and brewery was losing money in 2017 and 2018, falling behind on bills and payroll taxes. The decision was made to close the business. Shortly after the business shuttered its door, the IRS came knocking. The client consulted with us about what he needed to do in light of the debts still owed by the corporation. We advised him on the proper ways to close the corporation so that the liabilities stayed inside the shell of the closed corporation. We followed the California Corporations Code to inform all shareholders and interested parties of the scheduled board meeting to close the corporation. A minority shareholder, requested a review of information and books, because he did not want to lose the ability to get a free beer when visiting the area, per his shareholder agreement; despite the fact that the restaurant was already shattered. We guided the board meeting to a successful resolution, resolving the concerned minority shareholder’s concerns. We then sent notice to Wells Fargo Bank, which closed the $59,000 line of credit balance as uncollectible being inside the closed corporate shell. We sent notice to the IRS of the dissolution of the corporation prior to the time the case could be assigned for the interview that would allow a Trust Fund Recovery Penalty to be assessed against the owner of the corporation, locking the $195,000 payroll tax liability inside the closed corporate shell. A year later, two staff members filed complaints to the California Department of Labor Relations for unpaid vacation pay at the time the business closed. The original California representative that worked with the claimants requested $12,500 for the pair and claimed that the liability could go out of the corporate shell to the owner of the business. We filed a request for a hearing before the Labor Commissioner regarding the claims and asserting the liability could not break out of the corporate shell. During the days leading up to the hearing, the client agreed to pay $2,000 to one of the claimants to settle the matter because of fond memories of the worker. The other claimant did not settle and went forward with the hearing. At the hearing, the remaining claimant admitted that he took items from the business, that he filed for penalties without understanding what he was clicking the buttons for, and that the owner of the business was not involved in the day-to-day activity. The Labor Commissioner ruled that the remaining claimant was entitled to $1,015 of the $4,186 requested…but that it was only the responsibility of the closed corporation to pay it and that it could not break out of the corporate shell based on the claimant’s testimony. With our strategies of making sure that the corporation was properly closed and that all actions were properly followed; our client was able to successfully lock $264,500 of corporate debt into the shell of the dissolved corporation. While there were challenges to the situation, we guided the client through each bump in the road successfully.