Business Law

Ask a Business Lawyer. Get Business Law Questions Answered ASAP.

Ask a Lawyer,
Get an Answer ASAP!

Business Law
This answer was rated:

CA sales tax for my corporation I was screwed by my accountant

CA sales tax for my...
CA sales tax for my corporation:
I was screwed by my accountant that didn't file anything for my corporation for the last year and a half. The CA BOE revoked my license and also sent a inflated estimated bill for the unpaid sales tax that we owe. I don;t have enough to pay it and they are charging a huge penalty in the next 30 days if not paid. Is there a way they will work out a payment plan? or am I just tough out of luck and all my inventory and everything is gone!
is there a legal/ethical way to open a new corp and dump the inventory into it while I work out how to pay back the tax owed on the current corp? please let me know any wisdom you might have in this situation. I want to do whats right but also know how to play the chips. Thanks so much! -Tim :)
Show More
Show Less
Ask Your Own Business Law Question
Answered in 17 hours by:
5/6/2010
Law Educator, Esq.
Category: Business Law
Satisfied Customers: 119,532
Experience: All corporate law, including non-profits and charitable fraternal organizations.
Verified
There are no legal/ethical ways to "dump the inventory" into a new corporation unless you can have the new corporation come up with the money to actually buy the inventory and that money would have to go to pay the taxes owed. Your company is going to need an attorney to represent it, since a corporation cannot be represented in legal matters by the owner/manager/operator because it is considered the unauthorized practice of law. There are many times the attorney can indeed work out a payment plan with the state to repay the back taxes. The other thing your attorney would do is file suit against the accountant for negligence and malpractice and hopefully the accountant had errors and omissions insurance or malpractice insurance to cover this failure and you can seek to recover damages from them or from the accountant in suing the accountant personally. But yes, the attorney can work out some payment plan with the state for the repayment of the taxes and perhaps even get some reduction of the penalty.

I hope you found my answer helpful, please click on the GREEN ACCEPT button above for my answer. This is necessary for me to be paid for my work and so that I can get credit for assisting you. Your question will not close, and you will still have the opportunity to follow-up if needed. Leaving a bonus and positive feedback is not required, but doing so is certainly appreciated!

Please remember this is a dialog if you have follow up questions please use the REPLY button and ask. If you have additional questions, please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.

There can also be a delay of an hour or more in between my answers because I may be helping other customers or taking a break.

PLEASE NOTE WELL: IF YOU CLICK OPT OUT I CANNOT REPLY TO YOUR FOLLOW UP QUESTIONS AND YOU MAY NEVER GET ANY REPLY OR IT WILL DELAY MY ABILITY TO REPLY TO YOU. Also, if you use RELIST, I MAY NOT SEE YOUR RESPONSE AND IT WILL DELAY YOUR REPLY.

You can always request me through my profile at http://www.justanswer.com/profile.aspx?PF=10285032&FID=39 or beginning your question with “For PaulMJD…”

Ask Your Own Business Law Question
Customer reply replied 7 years ago
1)can't a CPA contact the state BOE for me to work out a payment plan, I didn't think it had to be an attorney?

2)my main focus is figuring out how much I owe the state in CA sales tax that I collected. Do I have to have all the corporate tax returns and reports and everything done to file that or is it as easy as just adding up what I collected, I need the quickest and easiest way to figure out what I owe, negociate a break on fees and possible payment plan.

I'm scrambling to do the following to try and get everything resloved, can you let me know if the following seams like a good option or any advice or places you could lead me to help or any good accountant, cpa, tax attorney or anything?

I was thinking I would have someone set up quickbooks for my business (just have a bunch of invoices and records not entered in anything), then have a book keeper enter everything. If I do that, is that mainly all I need for a CPA to figure out everything for what needs to be filed for everything related to the corp for the last year and a half.
Thanks again so much!!! -Tim :)
1) A CPA can do this, but you work out better many times using an attorney that specializes in corporate tax laws and the costs end up about the same. It also can end up being more economical because you should be pursuing the first CPA for the malpractice anyhow and that same attorney can do both which saves on time and makes it more economical. But a CPA can do this if you wish.

2) If it is a sales tax issue, then putting together the proof of all of your sales is going to be the fastest way to try to resolve the matter.

3) You are going to have to set something up to record all of your sales, no matter whether you use a CPA or an attorney. Actually, most attorneys that handle these matters are CPA's or have CPA's working with their firms.

The best place to find a local attorney that handles corporate tax issues is the same place used by other attorneys, http://www.martindale.com or http://www.findlaw.com.
Ask Your Own Business Law Question
Customer reply replied 7 years ago
1)im not going to file a malpractice suit, hes long gone and has hundreds of people after him. I'm confused about your statement that the costs add up to about the same. I need a CPA to file my taxes and everything once I get everything in quickbooks right? or are you saying a tax attorney can file them and negociate fees and it will be around the same cost? I would think an attorney doing it would be much higher? but maybe still worth it?

2)so I can just print all my payments recived and get a total amount of tax received (without filing anything else for the corp and have a CPA or attorney figure it all out with the state BOE?
what proof do I need, just print outs of the payments and don;t they just need something filed, the proof would be if they audit right? which at that time im sure I will have everyhting finished if that happened.
1) When you enlist one of these attorneys that specializes in corporate tax, as I said almost every one will handle the entire matter for you including filing the back tax forms and getting everything up to speed. You may pay a small amount more, maybe $50-$100 per hour more than a CPA to clear up the matter, but in the long run the attorney has more leverage to assist in fighting for reductions of fees and penalties and if there are major problems with the state's calculations the attorney can pursue them through the appeals process (which the straight up CPA cannot do and that means spending more money for an attorney to get up to speed on what the CPA did to date). In the long run on these matters it is usually worth the extra expense of using the corporate tax attorney from the beginning.

2) You eventually will have to get all of your corporate tax filings up to date, but for the purposes of the sales tax bill BOE is claiming you can put together your sales receipts to prove you did not make the sales BOE is claiming to prove you do not owe them what they state is owed. At this point, since they have made an assessment you are going to have to submit all of your proof of sales to them to get them to recalculate their assessment.
Ask Your Own Business Law Question
Customer reply replied 7 years ago
once all the data is in quickbooks and ready, I would think it would be more cost effective to have a CPA do the filings, minutes and everything else that a corp needs done (im ignorant about it all and don't know how it works) and once the CPA does there thing with the filings, then the extra expense of the attorney to have them finish it off with the BOE, would this be good or are you saying that an attorney to do the filing is still much better. I just have to be sure I can afford all this. I called some places yesterday and they says aound $4,000 to file everything. What range would you guess? I don;t want to be too cheap and don't know if I can afford much more than that.
All I can tell you is like I tell clients that come into my office daily who have acted on things in a way they thought would be more cost effective and now need an attorney, the old adage "you can pay now or pay more later" applies. You can use the CPA who can put everything together and present it to BOE and begin negotiations to try to reduce your tax liability. If BOE agrees, great you saved a few hundred dollars. If BOE does not agree with the CPA's assessment, then you need an attorney to pursue your appeal and pretty much every attorney I know will charge a higher rate because they were not involved from the beginning and now have to play catch up and possibly have to straighten out things the CPA did to help strengthen your case. This is why there are so many Attorney/CPA's out there, they specialize in these matters and can do both for you.

It is not really going to be cheap to try to get you out of this mess, I would estimate that $3000-$5000 would be a good ballpark figure and that could go up if BOE wants to fight over this. Even a good CPA for something like this (cleaning up another CPA's mess) will charge you in the $3000 range. But you have to evaluate how much BOE claims you owe against how much an attorney/CPA can save you in not just the taxes but penalties and fees against the cost of paying the fees of the attorney/CPA or just a CPA. Again, you are still going to need a upper end CPA to straighten this out, not some regular fill out the tax forms type CPA but one with experience fighting with BOE, and they are going to cost more than a regular CPA, so in all likelihood spending the extra $1000-$2000 for the added experience may likely be worth it in the long run if any problems or issues arise that will require going to court (and many BOE cases end up in court because of the CA corporate tax issues and the fact that several of the circuit appeals courts in CA have stated the corporate tax structure is unconstitutional but the State Supreme Court has yet to rule on it, so more businesses are now suing over their tax bills).
Ask Your Own Business Law Question
Customer reply replied 7 years ago
thanks, XXXXX XXXXX your right and thats what I will do, I just want to be sure to have someone I can trust. Can you tell me what are good and bad things to look for and watch out for in picking an Attorney/CPA and do you have any recomendation?

You need to ask them about their experience with BOE. Ask them about their success with BOE and if they have had to go to trial against them and what the outcomes were. Unfortunately, the terms of this site prohibit us from making referrals, the best we can do is suggest the same site used by other attorneys, http://www.martindale.com
Law Educator, Esq.
Category: Business Law
Satisfied Customers: 119,532
Experience: All corporate law, including non-profits and charitable fraternal organizations.
Verified
Law Educator, Esq. and 87 other Business Law Specialists are ready to help you
Ask your own question now
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 119,532
119,532 Satisfied Customers
Experience: All corporate law, including non-profits and charitable fraternal organizations.

Law Educator, Esq. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Attorney

1,793 satisfied customers

Experienced lawyer

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

1,611 satisfied customers

Run my own successful business/contract law practice.

MShore Law

MShore Law

Attorney

1,233 satisfied customers

Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

RGMacEsq

RGMacEsq

Attorney

742 satisfied customers

Licensed Texas General Practice Attorney

Barrister

Barrister

Attorney

640 satisfied customers

17 years practicing attorney, JD, BA, MBA

Ely

Ely

Attorney

564 satisfied customers

Counselor at Law.

J.Hazelbaker

J.Hazelbaker

Attorney

393 satisfied customers

Experienced and trained in the area of business law.

< Previous | Next >

Related Business Law Questions
Thank you again,like I had mentioned owns a corporation and
Thank you again,like I had mentioned owns a corporation and DBA under the business he sold to me, if we agree on him transferring the name and licenses until I am 21, can I work on my business meanwhi… read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
119,532 satisfied customers
I formed an llc as a corporate entity along with two
I formed an llc as a corporate entity along with two partners. One of my partner's was name appears as the filing agent in the articles of organization and we never filed an operating agreement. The p… read more
lwpat
lwpat
Doctoral Degree
256 satisfied customers
I established a corporation with two friends back in June.
I established a corporation with two friends back in June. This is a California corporation. I have filed the articles of organization and the statement of information. What else needs to be done to m… read more
FLACORPLAWYER
FLACORPLAWYER
Doctoral Degree
1,750 satisfied customers
Business/corporate/NPO: do I really need 2 different
For Tina, business/corporate/NPO: do I really need 2 different entities for this? I want to start an NPO that helps handicapped and disadvantaged people travel around the country, sometimes using comm… read more
dkennedy
dkennedy
Attorney
Juris Doctorate
27 satisfied customers
Can a corporation (s-corp) registered in California have a
Can a corporation (s-corp) registered in California have a general business purpose (e.g. something like "to be involved in any lawful activity for which corporations may be organized under the Genera… read more
socrateaser
socrateaser
1,031 satisfied customers
Is it regular practice to name a old debtors as defendants
is it regular practice to name a old debtors as defendants in a new Fraudulent conveyance case??… read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,793 satisfied customers
According to Texas statute, can corporate records (by-laws,
According to Texas statute, can corporate records (by-laws, articles of incorporation, etc.) be kept digitally? … read more
DrakeLAW
DrakeLAW
Juris Doctorate
835 satisfied customers
Converting my llc business to a c corporation and looking
Converting my llc business to a c corporation and looking for a lawyer to sign the paperwork … read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,685 satisfied customers
Is there a benefit to having a corporation own multiple
Is there a benefit to having a corporation own multiple LLCs? Or is one corporation doing multiple businesses a better way?… read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
886 satisfied customers
I need to convert my LLC to a domestick stock corporation or
Hello, I need to convert my LLC to a domestick stock corporation or domestic stock and agricultural cooperative corporation. I need help with the purpose statement. Also, what is the difference betwee… read more
Damien Bosco
Damien Bosco
2,992 satisfied customers
I already formed a not for profit corporation in New York
I already formed a not for profit corporation in New York under the name of Gateway Classical Music Society of New York. I would also like to do business as the New York Grand Opera or New York Grand … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
5,946 satisfied customers
This is a question about compliance for medical practices
This is a question about compliance for medical practices and chiropractors. We have a med spa business concept that involves offering our brand, access to pharmaceutical discounts, and expertise to h… read more
Asad Rahman
Asad Rahman
Attorney
J.D.
2,198 satisfied customers
A CORPORATION CAN I OWN 95% of the corporation and give 5%?
i AM OPENING A CORPORATION CAN I OWN 95% of the corporation and give 5%? … read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
886 satisfied customers
My family and i have a corporation it is a s corporation we
my family and i have a corporation it is a s corporation we had a family issue in which there was a 50 50 split one member from the other side sold her shares to the other side breaking the time so th… read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,793 satisfied customers
I am with a lender who is getting audited by their CPA's.
I am with a lender who is getting audited by their CPA's . They are under federal regulatory oversight Their CPA's are asking me to verify how much I owe the lender , Is it in the best interest for my… read more
socrateaser
socrateaser
1,031 satisfied customers
I have a corporate entity that operates a courier business.
I have a corporate entity that operates a courier business. The only asset of the firm is trucks and contracts with customers. I want to form a separate corporate entity or LLC and transfer all truck … read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
I am currently a small business owner of a corporation in
I am currently a small business owner of a corporation in California. I would like to add another business(bar) to my corporation, but I would need 2 or 3 investors to help inject capital(cash) into t… read more
Jim Williams
Jim Williams
Juris Doctorate
6 satisfied customers
S-Corporation Businesses Can an S-Corporation run two types
S-Corporation BusinessesCan an S-Corporation run two types of businesses? For example can one S-corporation operate as a real estate agent and a salesman for school products.Thanks, JW… read more
Michael Gonzalez
Michael Gonzalez
JD
519 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x