Los Angeles IRS Tax Attorney: What LA Taxpayers Need to Know About Federal Tax Problems

Los Angeles taxpayers operate in one of the most complex tax environments in the United States. Between the IRS, the California Franchise Tax Board (FTB), and the City of Los Angeles Business Tax, individuals and businesses can face simultaneous audits, liens, and collection actions from multiple agencies at once.

Review the relevant notices, filing history, records, and deadlines before choosing a response. Evaluate professional assistance according to the facts, applicable law, and agreed scope of representation.

Why Los Angeles Creates Unique IRS Exposure

Review the notice, disputed issues, supporting records and applicable procedures for the particular matter. Do not assume a particular selection probability, financial result or completion time.

• Separate California obligations: The California Franchise Tax Board (FTB) administers state income taxes separately from the IRS. Resolving a federal issue does not automatically resolve a state dispute.
• Entertainment industry income: Royalties, residuals, options and participation payments can require careful income reporting, contract analysis and recordkeeping. Their presence alone does not establish an audit risk or an error.
• International financial ties: Los Angeles residents may have foreign accounts, trusts, investments or gifts. U.S. reporting requirements depend on the person’s status, ownership, amounts and transactions; not every foreign asset requires the same forms.
• Self-employment and gig work: Reconcile business receipts, expenses, estimated payments and information returns. Assess the actual records rather than assuming a particular audit probability.

The IRS Presence in Los Angeles

For in-person help, use the IRS’s official Taxpayer Assistance Center locator and confirm appointment arrangements. For an existing matter, follow the contact details on the notice:

IRS notices and examinations may be handled by different offices. A CP2000 notice, notice of deficiency, audit request or collection notice does not necessarily originate from one Los Angeles facility.

Common IRS Problems Facing Los Angeles Taxpayers

IRS Audits in Los Angeles

IRS audit issues depend on the particular return, records and facts. Examples of matters to review include:

• Large Schedule C deductions relative to income (common for self-employed entertainment workers)
• Foreign income and applicable reporting of foreign accounts or gifts, which may involve FBAR, Form 3520 or other forms
• Crypto trading activity misreported or omitted from returns
• Business losses claimed for multiple years in a row
• Home office deductions and unreimbursed business expenses
• Significant Schedule E rental losses inconsistent with reported AGI

An IRS audit may be conducted by correspondence, at an IRS office or as a field examination. These are different formats, not three mandatory successive stages. You may represent yourself or appoint an authorized representative to address document requests, disputed issues and available appeals.

Tax Liens and Levies on LA Properties and Bank Accounts

If taxes remain unpaid after assessment and demand, a federal tax lien can arise against property. The IRS may file a public Notice of Federal Tax Lien. This can affect access to credit and complicate sales or refinancing; available discharge, subordination or withdrawal procedures have specific requirements.

A tax levy takes property to satisfy tax debt. For a bank levy, funds are generally frozen when the bank receives it, followed by a 21-day holding period before remittance. This is not 21 days of advance notice before freezing. Contact the IRS promptly about payment arrangements, errors or applicable release grounds; release is not guaranteed merely by proposing a plan.

International Tax Compliance for Los Angeles Residents

Some Los Angeles residents maintain financial ties abroad, including bank accounts, gifts or inheritances, foreign funds and foreign employment income. Analyze each category separately under the applicable U.S. rules.

Examples of matters requiring review include:

• A U.S. person’s financial interest in or signature authority over foreign financial accounts with aggregate value exceeding $10,000 at any time during the calendar year → generally FBAR (FinCEN Form 114), subject to exceptions
• Gifts or bequests totaling more than $100,000 from a nonresident alien individual or foreign estate, including required aggregation of related donors → generally Form 3520 for a U.S. recipient; foreign corporations and partnerships have a different threshold
• Reportable foreign-trust transfers, distributions or ownership → Form 3520 and/or Form 3520-A, subject to applicable exceptions
• Interests in certain foreign corporations, including some foreign mutual funds or ETFs → possible passive foreign investment company (PFIC) reporting on Form 8621, depending on the facts and exceptions
• Foreign pension or tax-favored accounts → review the applicable income and information-reporting rules, treaty provisions and any specific exemptions

Penalties vary by obligation and conduct. FBAR civil maximums are inflation-adjusted, and international tax forms have separate penalty and relief rules. Before selecting IRS Voluntary Disclosure, streamlined procedures or another correction method, assess willfulness and eligibility. VDP does not guarantee immunity; streamlined procedures require a truthful non-willfulness certification.

The FTB Problem: IRS Resolutions Don’t End California’s Pursuit

One of the most common misunderstandings among Los Angeles taxpayers is believing that resolving an IRS issue automatically fixes the California FTB problem. It doesn’t.

The California Franchise Tax Board is an independent state taxing authority with its own audit program, collection tools, and enforcement timeline. The FTB:

• Conducts its own audits independent of the IRS (and can run simultaneously with an IRS examination)
• Issues California tax liens that attach to your real property anywhere in California
• Can intercept California state tax refunds and lottery winnings
• May receive information about federal adjustments; review whether a federal change also creates a California reporting or tax obligation

Review the relevant notices, filing history, records, and deadlines before choosing a response. Evaluate professional assistance according to the facts, applicable law, and agreed scope of representation.

Wage Garnishment in Los Angeles

Federal IRS wage levies follow federal exemption rules, which differ from California’s rules for other creditors. Do not assume that a state-law wage exemption controls an IRS levy.

The exempt amount depends on federal calculations, including filing status and dependents. A wage levy generally continues until payment arrangements, satisfaction of the debt or release. Provide the employer’s requested dependent and filing-status statement promptly. Contact the IRS immediately if the levy prevents payment of basic reasonable living expenses; relief depends on the facts, not a fixed percentage or guaranteed timetable.

Contact Segal, Cohen & Landis to discuss the matter. Verify the proposed representative’s qualifications, meeting arrangements and scope of engagement; do not assume a particular result or completion time. Related resources: See our Los Angeles IRS tax attorney page.

IRS Resolution Options Available to LA Taxpayers

If you owe back taxes, the IRS offers several formal resolution programs. The right option depends on your income, assets, and ability to pay:

• Installment Agreement: Pay over time under an IRS-approved arrangement. Eligibility and payment terms depend on the debt and circumstances; no single 6–72 month range applies to every plan. Interest and applicable penalties continue.
• Offer in Compromise (OIC): An eligible taxpayer may settle for less than the full balance. For an offer based on doubt as to collectibility, the IRS evaluates income, allowable expenses and asset equity. A national acceptance rate does not predict an individual outcome.
• Currently Not Collectible (CNC): If paying would cause financial hardship, the IRS may temporarily suspend most collection after reviewing finances. The debt remains; interest and penalties continue, refunds may be offset and a notice of federal tax lien may be filed.
• Penalty Abatement: Certain penalties may qualify for reasonable-cause or administrative relief. First-time abatement (FTA) and the Automatic Exemption from Penalty (AEP), introduced in summer 2026 for eligible 2025 annual and 2026 quarterly returns and later periods, depend on compliance history and other requirements. A first offense alone does not establish eligibility. Reducing a penalty also reduces related interest, but interest on unpaid tax generally remains.
• Innocent Spouse Relief: Different forms of relief from joint liability have distinct requirements. Knowledge, marital status, the nature of the liability and equitable factors may matter; relief is not limited to a spouse’s fraud.

What to Do If You Receive an IRS Notice in Los Angeles

IRS notices are time-sensitive. Here’s what to do when you receive one:

1. Do not ignore it. Identify every applicable response or petition deadline. A notice of deficiency generally allows 90 days to petition the U.S. Tax Court, or 150 days if addressed to a person outside the United States, subject to applicable exceptions or postponements. Missing the deadline can have serious consequences.
2. Identify the notice type. A CP2000 generally proposes changes based on information mismatches; it is not itself a bill. A CP504 concerns unpaid tax and possible levy, while Letter 1058 generally gives a final levy notice and Collection Due Process rights. Read the actual notice and its specific instructions.
3. Prepare an accurate response. Check the notice against your returns and records. You may respond yourself or seek professional help; consider legal advice when the facts, potential penalties or deadlines are unclear.
4. Preserve all relevant records. Bank statements, receipts, contracts, foreign account records, and tax returns from the affected years should be organized and protected.
5. Contact a tax attorney immediately. Time limits for response, appeal, and Tax Court petitions are strict. Seek prompt advice about the notice-specific petition deadline; statutory exceptions or postponements may apply.

Frequently Asked Questions — Los Angeles IRS Tax Attorney

Does Segal, Cohen & Landis serve clients throughout Los Angeles County?

Contact Segal, Cohen & Landis to discuss the matter. Verify the proposed representative’s qualifications, meeting arrangements and scope of engagement; do not assume a particular result or completion time.

How fast can you release an IRS bank levy or wage garnishment in LA?

No 24–72 hour result can be promised. If the IRS determines that a wage levy causes immediate economic hardship, it must release that levy. A bank levy generally freezes funds when received and has a 21-day holding period before remittance. Contact the IRS promptly about errors or applicable release grounds, and call 310-285-3999 to discuss possible representation.

I have unreported foreign accounts from my home country — what should I do?

Gather account statements, prior returns, ownership records and relevant notices. Assess required forms, willfulness and eligibility before selecting VDP, streamlined procedures or another correction method. Neither background nor a foreign account alone determines the correct path.

Can you help with both IRS and FTB problems?

Federal and California matters require separate analysis. Contact the firm to confirm whether the proposed engagement covers both the IRS and FTB issues, who will handle each matter and which deadlines apply.

What makes SCL different from a CPA or enrolled agent?

Verify the professional’s current credentials and experience relevant to the matter. Confirm who will perform each legal, accounting or filing task and what the engagement includes.