Law Offices of Connie Yi, PC
Tell Us About Your Case

For the safety of our community, clients and staff, we have suspended all in-person meeting effective March 17, 2020. All consultation meetings will be via Phone or Zoom Video Conferencing. Please contact us at (925) 484-0888 or email us directly at [email protected] to schedule the consultation.

View Our Practice Areas

IRS, California target small-business owners using new technology

The Internal Revenue Service is not particularly friendly toward small businesses. Year after year, the IRS accuses small business of cheating their way out of millions of dollars in taxes. Small business owners in California, however, know how complicated it is to file a tax return, and the IRS is unforgiving when mistakes are made. Now, tax collectors are utilizing new resources to make things even more difficult for business owners.

In an effort to increase Tax Code compliance, states are getting creative with their collection techniques. For example, California has partnered up with New York to cross-check those who might owe taxes in the other state. If someone gets a refund in New York but owes money in California, the refund will be applied to the California debt.

Some states are starting to take advantage of data from places like the Department of Highway Safety and LexisNexis to make sure taxpayers are reporting accurate information. Other states are refusing to renew licenses or issue permits for businesses that have not paid their taxes in full. Finally, in some states, jail time is a real possibility for business owners who are delinquent on their tax payments.

No California business owner wants to end up in jail because of unpaid taxes. As the state begins to crack down on delinquent business owners, it is becoming increasingly important to ensure that all of your tax-related documents are filled out correctly and in full. One slip-up could mean devastating penalties. California has announced that it is investing $670 million in new technology related to tax collection. To ensure that your business does not get targeted, it may be worthwhile to talk to an attorney about your taxes.

Source: Bloomberg Businessweek, “How States Are Cracking Down on Small Business Tax Cheats,” Patrick Clark, March 11, 2014

No Comments

Leave a comment
Comment Information

Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Email Us For A Response

Office Locations

Law Offices of Connie Yi, PC
323 Ray Street
Pleasanton, CA 94566

Phone: 925-484-0888
Pleasanton Law Office Map

19925 Stevens Creek Blvd
Suite 100
Cupertino, CA 95014

Toll Free: 888-312-6978
Map & Directions

San Francisco
490 Post Street, Suite 508
San Francisco, CA 94102

Toll Free: 888-312-6978
Phone: 415-433-3350
Map & Directions