Hi Pearl. I received a notice from the City of Los Angeles under the "tax
discovery program" that I owe city tax for business activity for the past 5 years. I am exempt
from this tax, as my income
is under the threshold, but in reading onine, I have found that if an exemption is not filed each year, there is substantial tax and penalties that would cost me upwards of $30,000 when all totaled up. This would bankrupt me, as I operated at a loss last year, and currently am a stay at home mom. In further research, I found that the city seemingly purposefully does not make this particular tax widely known so that they can collect the outrageous penalties as they "catch" people like me. There are several news stories about it online. What are my options from a legal / accounting
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: The exemption I refer to is a "creative artist" exemption, in case that's pertinent. Also, this notice was sent in the name of my sole member LLC
... not sure if that matters, though.
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form
, I'll tell the Accountant about your situation and then connect you two.