This page is for individuals and businesses in Los Angeles seeking expert legal help with IRS and California tax problems. Serious tax issues—such as audits, back taxes, criminal investigations, wage garnishments, and bank levies—require specialized legal help from an experienced tax lawyer in Los Angeles. Here, we explain how a tax lawyer can help you resolve audits, back taxes, criminal investigations, and more, ensuring you have the right guidance and representation when facing complex tax matters.

If you are searching for a tax lawyer in Los Angeles because an IRS notice, wage garnishment, bank levy, or audit letter just arrived, you are in the right place. Lexington Tax Group helps individuals and businesses resolve serious tax issues in Los Angeles, Los Angeles County, and throughout California.

Call 800-328-8289 or visit www.Lexingtontaxgroup.com for a free, confidential tax consultation. The sooner you act, the more options may be available.

Urgent reasons to call now include:

• Back taxes, unfiled returns, and growing penalties
• IRS and California Franchise Tax Board audits
• Eggshell audits and reverse eggshell audit risk
• Wage garnishments, bank levies, and federal tax liens
• Criminal tax exposure involving unreported income, payroll taxes, or foreign bank accounts

Why Los Angeles Taxpayers Call Lexington Tax Group First

Los Angeles taxpayers often face more complicated tax problems than the average filer. Entertainment income, tech equity, real estate gains, crypto, international investments, and business ownership can all increase audit risk and make tax law harder to navigate.

A tax lawyer is a legal professional who provides tax planning, compliance, and representation in disputes with tax authorities, and experienced Los Angeles tax lawyers help clients address those issues locally before the IRS and California agencies.

Lexington Tax Group is built for serious tax controversy work:

• Decades of combined experience with IRS and California tax agencies
• Focus on Los Angeles tax disputes as Los Angeles tax attorneys handling complex local tax controversy matters for individuals, businesses, entertainers, founders, investors, and professionals
• Extensive knowledge of the Internal Revenue Service, Franchise Tax Board, California Department of Tax and Fee Administration, and California Employment Development Department
• Assistance with litigation matters involving tax court, United States Tax Court, district court, federal court, state courts, and bankruptcy court
• Same-day consultations for garnishments, levies, audits, and criminal tax defense concerns

Tax law is highly specialized, and attorneys should have specific expertise in tax controversy and litigation. A Master of Laws in Taxation, or LL.M., is an advanced legal degree focused on tax law, and fewer than 0.2% of California lawyers hold the Board-Certified Taxation Law Specialist designation from the state bar of California.

Get started at www.Lexingtontaxgroup.com through a secure contact form, or call 800-328-8289 if your matter is urgent.

IRS and California Tax Agencies You May Be Facing

Many Los Angeles taxpayers are not dealing with one agency. They may be facing the IRS, the California Franchise Tax Board, the California Department of Tax and Fee Administration, and the Employment Development Department at the same time.

Here is what each agency may control:

• The Internal Revenue Service handles federal income tax, payroll tax, information reporting, foreign bank and financial accounts, criminal investigations, and eggshell audits, all under the framework of the Internal Revenue Code. The IRS can conduct a tax audit by mail or through an in person interview, and an audit requires a taxpayer to explain expenses and deductions while describing income sources.
• The California Franchise Tax Board handles state income tax assessments, residency audits, non-filer cases, and collection actions against Los Angeles County residents.
• The California Department of Tax and Fee Administration, often called CDTFA, handles sales tax and use tax audits for restaurants, retail, e-commerce, cannabis, and service businesses in the Los Angeles area. California taxes are aggressively policed by agencies such as the California Franchise Tax Board (FTB), the California Department of Tax and Fee Administration (CDTFA), and the Employment Development Department (EDD).
• The California Employment Development Department handles payroll tax audits, worker classification disputes, and personal assessments against owners, managers, and officers.

California has over 60,000 state tax rules, making its tax landscape complex. Lexington Tax Group coordinates strategy across the IRS, FTB, CDTFA, and EDD so one response does not accidentally create exposure with another agency.

Common Los Angeles Tax Problems We Handle

Many clients search “best tax help near me” after they are already in trouble. Notices have arrived. A tax return was never filed. An IRS agent is requesting documents. A bank account has been frozen.

Common problems include:

• Unpaid back taxes and penalties. Taxpayers who fail to file their tax returns may face significant penalties, including a 5% charge on the outstanding tax bill for each month of delay beyond the original tax filing deadline, up to a maximum of 25%.
• IRS and FTB audits. These include correspondence, office, and field tax audits, plus high-risk eggshell audits where prior noncompliance exists.
• Substitute returns. If a taxpayer fails to file or pay state or federal taxes, the taxpayer may receive notices from the IRS or state tax authorities, and if the taxpayer does not respond, the agency may file a tax return on the taxpayer’s behalf, often resulting in higher liabilities.
• Aggressive collections. Lexington Tax Group handles wage garnishments in Los Angeles County, bank levies, federal tax liens on LA real estate, and passport issues tied to seriously delinquent tax debt.
• Business tax issues. These include payroll tax problems, trust fund recovery penalties, CDTFA sales tax audits, and EDD worker classification disputes.
• International and multi-state issues. Taxpayers with foreign assets or accounts exceeding certain thresholds must file annual offshore tax disclosures under FBAR, the Report of Foreign Bank and Financial Accounts, and FATCA, the Foreign Account Tax Compliance Act.

The IRS has intensified investigations into offshore tax evasion, making it crucial for taxpayers with foreign income or assets to understand and comply with international tax regulations to avoid severe penalties. Failure to comply with offshore disclosure obligations can result in significant penalties, including a $10,000 penalty for inadvertent violations of FBAR, with harsher penalties for intentional violations that can exceed the account balance.

Lexington Tax Group tailors solutions for wage earners, small business owners, entertainers, influencers, tech founders, and real estate investors in Southern California.

IRS & California Tax Audit Defense – Including Eggshell Audits

Los Angeles taxpayers can face heightened audit scrutiny because income streams are often complex. Residuals, royalties, equity compensation, crypto gains, cash receipts, and foreign bank accounts can all complicate taxable income.

A strong tax audit defense strategy may include:

• Standard IRS audit response. Most audits start with a notice requesting records. The audit process may involve bank statements, receipts, mileage logs, contracts, ledgers, and proof of deductions. The IRS explains general audit procedures on its official audit page.
• Eggshell audits. Eggshell audits are civil audits that pose elevated risks, occurring when the taxpayer knows of substantial noncompliance that the IRS does not, potentially leading to civil fraud penalties or criminal tax prosecution.
• Reverse eggshell audits. Reverse eggshell audits are more dangerous than regular audits, as they occur when the IRS investigator knows incriminating information about the taxpayer, who is unaware of the investigation, potentially leading to criminal tax charges.
• Documentation. Tax audit defense involves assembling records and documentation to justify tax filings, and legal representation can help protect taxpayers from unjust accusations and harassment during the audit process.
• Controlled communication. Lexington Tax Group manages contact with every IRS agent, appeals officer, auditor, or state examiner to avoid damaging statements.
• High-risk industries. Entertainment, cannabis, cash-intensive businesses, crypto trading, restaurants, and foreign bank matters require a comprehensive understanding of both federal tax laws and California tax code rules.

Hiring a tax attorney ensures that communications and financial records remain confidential due to attorney-client privilege. That protection can matter when civil fraud, criminal liability, or a referral to IRS counsel is possible.

Criminal Tax Defense and Avoiding Criminal Liability

An audit in Los Angeles can shift from civil to criminal without much warning. Unfiled returns, false deductions, offshore accounts, payroll tax pyramiding, and deliberate underreporting can all raise criminal liability concerns.

Common triggers include:

• Willful failure to file or pay
• False tax return filings
• Offshore evasion and undisclosed foreign bank accounts
• Payroll tax pyramiding
• Fraudulent refund claims
• Altered books, hidden cash, or nominee ownership

The IRS aggressively pursues non-filers, and willful failure to pay taxes can lead to criminal prosecution, with potential penalties including prison time and fines under 26 USC Section 7203. IRS Criminal Investigation and the California Franchise Tax Board’s criminal unit may work together on Los Angeles tax cases, sometimes involving the U.S. Attorney’s Office or a local District Attorney.

Badges of fraud include concealment, false documents, repeated underreporting, and misleading statements. Speaking directly to agents without an attorney can increase exposure.

Lexington Tax Group provides criminal tax defense by:

• Taking immediate control of communications
• Asserting constitutional rights
• Evaluating offshore voluntary disclosure options where appropriate
• Negotiating with government counsel
• Working to avoid indictment where possible

If a special agent, FTB investigator, or IRS office representative contacts you, call 800-328-8289 before responding.

Relief Options: Settling or Reducing Your Los Angeles Tax Debt

Many clients assume they must pay the full balance immediately. In reality, the law may provide several relief options.

Options may include:

• Installment agreement. A monthly payment plan can help taxpayers resolve large income tax debts over time.
• Offer in Compromise. Some taxpayers may settle for less than the full balance when strict IRS or FTB financial criteria are met, including debts from recent tax years such as 2019–2024.
• Penalty abatement. Failure-to-file, failure-to-pay, and accuracy-related penalties may be reduced when reasonable cause or first-time abatement applies.
• Currently Not Collectible status. This can pause active collection when a taxpayer cannot afford basic living costs in high-cost Los Angeles housing conditions.
• Bankruptcy coordination. Some older income tax debts may be dischargeable or restructured, but payroll taxes, trust fund taxes, fraud-related debts, and recent liabilities may not qualify.

Tax litigation can involve both civil and criminal tax matters, and cases may be heard in various federal courts, including the U.S. Tax Court, U.S. District Court, and U.S. Bankruptcy Court. Lexington Tax Group prepares financial packages, negotiates with revenue officers, and coordinates with bankruptcy counsel when bankruptcy court issues arise.

Tax planning services provided by tax attorneys can help individuals and businesses minimize their tax liabilities and avoid potential legal issues. Tax services offered by tax lawyers in Los Angeles include tax planning, compliance, and representation in disputes with tax authorities.

California Franchise Tax Board and Los Angeles Residency Audits

The California Franchise Tax Board aggressively audits high-earning Los Angeles residents and former residents for residency and domicile. A move to Nevada, Texas, Florida, or another state does not automatically end California tax exposure.

FTB residency audits often focus on:

• Whether you truly changed domicile or kept your taxpayer’s home in California
• Whether you continued earning Los Angeles-sourced income
• Travel logs, leases, home purchase or sale records, employer agreements, school records, and social media
• Credit card records, cell phone data, business registrations, and professional memberships
• Multiple years, often from 2017–2024, which can compound tax, interest, and penalties

Lexington Tax Group builds a coherent residency narrative, organizes records, and negotiates with FTB auditors to minimize additional assessments.

In California, taxpayers can appeal the outcome of a California Franchise Tax Board assessment by filing a written protest and potentially bringing the case to the State Board of Equalization. Depending on the matter, a California board, state board, or administrative forum may become part of the dispute path.

Early representation can prevent an audit from escalating into liens, tax appeals, or allegations of deliberate residency misrepresentation.

Business Owners: Sales Tax, Payroll Tax, and Employment Audits in Los Angeles

Business owners in Los Angeles County face a wide array of tax risks. Restaurants, salons, contractors, e-commerce sellers, professional practices, and entertainment companies may face multi-agency audits.

Key issues include:

• CDTFA sales tax audits. The tax and fee administration agency may review underreported gross receipts, cash skimming, POS discrepancies, and illegal zapper devices.
• EDD employment tax audits. The employment development department may investigate worker misclassification, cash payroll, and failure to withhold or remit payroll taxes.
• Trust fund liability. Owners, managers, and signatories can face personal liability when payroll or sales taxes were collected but not remitted.
• Record reconstruction. Lexington Tax Group helps rebuild books, bank records, payroll data, and sales reports.
• Asset protection. The goal is to protect personal assets, business licenses, and operating ability wherever possible.

Do not turn over records or agree to an in-person interview at your Los Angeles office before speaking with a tax lawyer. Call 800-328-8289 first.

Appeals, Tax Court, and District Court Litigation

Many adverse IRS or FTB decisions can be challenged through administrative appeals or in court. Missing a deadline can forfeit important rights.

Appeal and litigation options include:

• IRS Appeals. Taxpayers who disagree with the results of an IRS audit can appeal the outcome to the IRS Appeals office, which aims to resolve disputes fairly and avoid litigation. The IRS Appeals division will assess the likelihood of a court agreeing with the IRS’s position and will attempt to settle the case at a conference.
• Federal court. If a settlement is not reached during the IRS Appeals process, taxpayers have the option to bring their case to federal court.
• U.S. Tax Court. The U.S. Tax Court is a federal court that hears disputes between taxpayers and the IRS, allowing taxpayers to challenge IRS determinations before paying the disputed amount. You can learn more from the United States Tax Court.
• Tax court petition. A tax court petition generally must be filed within strict deadlines, often 90 days from the IRS Notice of Deficiency.
• District court. Federal District Court in Los Angeles may hear refund suits after payment, injunction issues, or summons enforcement matters.
• Formal tax litigation. Tax litigation cases can include disputes over tax deficiencies, disallowed deductions, and improper IRS collection activities, which are adjudicated in a formal legal proceeding without a jury.

In most tax litigation cases, the taxpayer bears the burden of proof, meaning the taxpayer must provide credible evidence to dispute the IRS’s claims, although this burden can shift to the IRS in certain circumstances and appeals may continue through the U.S. Court of Appeals to the Supreme Court in rare cases.

Lexington Tax Group handles tax dispute strategy, written protest submissions, petitions, legal memoranda, settlement conferences, and trial preparation.

How to Choose the Best Los Angeles Tax Lawyer Near You

If you searched “best tax attorney near me,” you may be overwhelmed by ads, directories, and tax resolution companies. The right tax attorney should have specific experience with the agencies and risks involved in your case.

Look for:

• Experience with the IRS, Franchise Tax Board, CDTFA, and EDD
• A track record in civil and criminal tax matters
• Familiarity with local procedures, including the IRS office, Los Angeles office contacts, and federal District Court in Los Angeles
• Direct handling by experienced tax attorneys rather than a call-center model
• Clear fees, realistic expectations, and regular updates
• Knowledge of eggshell audits, offshore accounts, payroll tax, and multi-year back tax resolution

It is advisable to verify a prospective lawyer’s qualifications using legal directories like Justia or Super Lawyers. Many local attorneys offer initial consultations to analyze the scope of your problem.

Do not choose a lawyer solely because a website says “best.” Ask about legal specialization, extensive experience, attorney-client privilege, and whether the lawyer regularly handles tax litigation matters. Tax lawyers assist clients in navigating complex tax laws and regulations, ensuring compliance with both federal and state tax obligations.

Lexington Tax Group gives clients direct access to experienced professionals, tailored strategies, and steady communication. Whether you are in downtown Los Angeles, Beverly Hills, the San Fernando Valley, Long Beach, or another part of Southern California, call 800-328-8289 or visit www.Lexingtontaxgroup.com.

What to Expect When You Call Lexington Tax Group

Many people call when they feel embarrassed, angry, or afraid. You do not need to have everything organized before reaching out.

Here is what usually happens:

• Initial consultation. Lexington Tax Group reviews IRS and California notices, discusses income, assets, deadlines, and immediate risk.
• Power of attorney. When appropriate, the firm files authorization so agencies communicate through your representative instead of calling you directly.
• Risk assessment. The team evaluates civil versus criminal exposure, audit risks, collection deadlines, and settlement possibilities.
• Action plan. You receive a customized path forward, which may involve records gathering, tax collection defense, penalty abatement, appeal, or litigation.
• Timelines. Some wage garnishments may be addressed within days where possible; Offers in Compromise may take weeks to prepare; audits may take months depending on complexity.
• Meeting options. Clients can choose phone, video, or in-person consultations to fit busy Los Angeles schedules.

Lexington Tax Group is not a security service or a tax mill. It is a legal team focused on protecting taxpayers through careful strategy, confidentiality, and strong advocacy under federal and California law.

If you are facing an IRS audit, FTB assessment, CDTFA sales tax review, EDD payroll audit, wage garnishment, levy, or criminal investigation, do not wait for the next notice.

Call 800-328-8289 or visit www.Lexingtontaxgroup.com for a free, confidential tax consultation and take the first step toward resolving your tax issues.