A GUIDE TO CALIFORNIA STATE TAX LIENS A GUIDE TO CALIFORNIA STATE TAX LIENS UNDERSTANDING, NAVIGATING, AND RESOLVING STATE TAX LIENS

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1 1 A GUIDE TO CALIFORNIA STATE TAX LIENS UNDERSTANDING, NAVIGATING, AND RESOLVING STATE TAX LIENS

2 2 CONTENTS INTRODUCTION 03 WHAT ARE TAX LIENS 04 TAX COLLECTION AGENCIES OF CALIFORNIA FRANCHISE TAX BOARD 11 EMPLOYMENT DEVELOPMENT DEPARTMENT 14 BOARD OF EQUALIZATION (BOE) 17 HOW A TAX ATTORNEY CAN HELP 20 ABOUT OUR FIRM 21

3 3 INTRODUCTION There is a great debate within the tax community about the efficacy of filing liens against taxpayers. On one hand, there is an expressed need by the government to protect their interests in any tax debts that are owed to them against other creditors and to ensure that they get paid. On the other hand, tax liens are filed against taxpayers with few or no assets for the government to secure an interest against. Although the government justifies these actions by stating that it is possible that tax debtors could obtain property in the future, the fact is that tax liens have destructive and long term consequences against the taxpayer that they are filed against. They can prevent a taxpayer from borrowing to buy a house, obtain a car loan, finance a small business, or gain financial freedom. Liens appear on a taxpayer s credit report and are a matter of public record. They can limit employment in certain sectors or cause you to be terminated. In short, they are a powerful collection tool that can do real damage when utilized by the state. This guide is meant to provide you with the facts about tax liens, their consequences, and what you can do to resolve them. In the author s own experience, there are few resources that are made available to taxpayers particularly with respect to California state tax issues. For many reasons, although state tax liabilities are often less than their federal counterparts, they are often the more difficult to deal with. Particularly in California, where limited taxpayers rights are put into place, state tax collection agencies are very aggressive and often uncompromising when it comes to resolving state tax issues. In California, the Board of Equalization, the Franchise Tax Board, and the Employment Development Department all have the right to place a lien and will do so without consideration to the circumstances of the individual tax debtor.

4 4 WHAT ARE TAX LIENS? A tax lien is a security interest filed by the state of California against any real or personal property to satisfy a tax debt. Once filed, the lien becomes a matter of public record and prevents property from being sold or transferred, as long as the lien exists and is not paid in full. Under Revenue and Taxation Code Section 19221, if a liability is not paid at the time that it becomes due and payable and the government has met all federal and state due process requirements, an enforceable state tax line can be created for the amount of the liability owed. A state tax lien is a general lien, which means that it attaches to all property and rights to property that belongs to the taxpayer, real or personal, that is located in California. One other important thing to note is that the lien also attaches to property acquired in the future by the taxpayer. So anything that the taxpayer acquires in the future will be tarnished by the tax lien and the government will secure its right in your property until the tax lien is removed. Liens have far reaching consequences to taxpayers, individuals, and businesses and have many implications to the taxpayer, both when the lien is filed and ten, twenty, even thirty years down the road. NOTIFICATION OF LIENS The delinquent taxpayer is notified of the placement of a lien, often by letter. The Franchise Tax Board, Employment Development Department and the Board of Equalization send a letter notifying the taxpayer of a liability and requesting payment of the delinquent tax. If no sufficient response is received by the taxpayer or resolution put into place, the agency will place a lien against the taxpayer in order to protect the state s interest in any real or personal property that they may own. Generally, other collection action is not immediate after a lien filing, as it is the preference of the state to give the taxpayer sufficient time for the taxpayer to respond or make payment arrangements before another negative collection action is taken. However, after the state feels that sufficient time has been granted, the lien is often the first step in a series of increasingly more aggressive collection actions. Liens are usually accompanied shortly after with another demand for payment letter from the state. Failure to pay the debt or to institute a resolution will lead to more levies, wage garnishments, asset seizures, and referral to a field agent to pursue the taxpayer locally in some cases. In short, the lien is one of the first steps in the collections process, but by no means is it the only step in the process. A lien filing is usually a signal of more to come and the filing of a lien is usually the first action after the taxpayer has been given sufficient time to respond to the account. However, once that time has been granted,

5 5 the taxpayer s account will be transferred into an involuntary collections unit or assigned to an individual agent to extract payment from the taxpayer. Ignoring the issue does not mean it will go away and, often, taxpayers can resolve the situation after a lien has been filed with only a minimal of effort. As the taxpayer moves through the collections process though, resolving the account becomes much more difficult and time consuming to resolve. REQUIREMENTS OF A VALID LIEN By law, CA Code Section 7171(c) states that a properly filed tax lien must contain the following information in order to be considered a validly filed lien: The last name, first name, middle initial or entity name. The name of the state tax agency giving notice of the lien (Franchise Tax Board, Employment Development Department, Board of Equalization, etc ). The amount of unpaid tax. A statement that the amount of the unpaid tax is a lien on all real or personal property and rights to such property, including all after-acquired property and rights to property belonging to the taxpayer. A statement that the state tax agency has complied with all of the provisions of the applicable law for determining and assessing the tax. If you have a question regarding the validity of your lien or whether due process was satisfied, we encourage you to reach out to our office for further discussion. HOW LONG ARE LIENS VALID FOR Notice of State Tax Liens are valid ten years from the date of their recording unless the State of California files an Extended Notice of State Tax Lien is filed as an extension of the original lien. Liens are extended on a case by case basis and only if all of the guidelines for extension are met. Although the factors that the state considers are too exhaustive to list individually, underlying the rationale behind extensions is the idea that the lien will be an effective collection tool because of some sort of reasonable expectation that the lien will be satisfied, either because of the taxpayer s current ability to pay or because of the property that the taxpayer owns or perceived likely to acquire in the future.

6 6 HOW LIENS IMPACT YOUR CREDIT REPORT Because liens are a matter of public record, anyone can easily find and have access to them. Usually when a tax lien is filed, a tax debtor will notice a flood of incoming mail from tax resolution companies. The reason these companies can find you so quickly is because they purchase lists of publicly filed tax liens and have access to all your personal information. Many of the tax resolution scams, which are people pretending to be the IRS and trying to extort money out of people, obtain their primary information from lien filings as well. Additionally, all of the major credit reporting agencies do sweeps of the county recording offices for tax lien information and put this information on your credit report. Anyone who has ever had a tax lien knows the significant impact that a lien filing can have against your credit score. This information stays on your credit report for a minimum of seven years and even lien filings that have been released after being paid in full will continue to remain on your record. Because of the implications of a lien, that the tax debtor is unable to pay a major financial obligation, and the priority of the interest (tax liens take priority over many other types of security interests, especially in a bankruptcy setting), I have had clients with difficulty making major financials purchases, leasing automobiles, buying homes, and even applying for credit cards because of lien related issues. THE PUBLIC LIST OF DELINQUENTS California Revenue and Taxation Code Section now requires both the Franchise Tax Board and the Board of Equalization to publish a list of the top 500 owing taxpayers in California. Any taxpayer without a resolution put into place with the state tax agency in question, not a pending resolution, is subject to public disclosure after being served with the appropriate due process notice. The most significant consequence of the list, other than the notoriety of being put on it, is the ability for California to suspend all your active state licenses including your driver s license. If you are placed on the list, the California Department of Motor Vehicles will typically suspend your license within thirty (30) days, which makes it a crime to drive in California or in other states. In order to be included on the list, the total tax delinquencies must total more than $100,000 and be subject to a recorded notice of state tax lien. Public disclosure on the list includes the following information. Taxpayer s name and address Amount owed Earliest date a notice of tax lien was recorded Taxpayer s occupation or professional licenses with type, status, and license number

7 7 LIENS AND BANKRUPTCY Tax liabilities can lead to bankruptcy. However, bankruptcy does not make all tax problems go away; some liens can survive the bankruptcy process. The state tax agencies will allow liabilities to be discharged by bankruptcy, but this is a complex step to take. There are multiple steps to the process that must be taken in the correct order. If it is a business that owes taxes, it must be dissolved during the bankruptcy and, therefore, will be unable to generate any more sales tax liability. It also cannot generate any revenue after the bankruptcy. State tax liens are also something that remain against a taxpayer even after a bankruptcy. Generally, in chapter 7 cases, a taxpayer can discharge liabilities pursuant to the federal rules. However, while the state tax agencies will not have any collection action taken against them to compel payment and will not tax any action against a bankrupt taxpayer. However, any tax liens that were filed pre-petition and would survive the discharge and attach to any property held by the taxpayer from prior to the petition date. As such, any tax liens survive the bankruptcy, even if the underlying liability is discharged, and will continue to attach to any property that the taxpayer owned pre-petition unless the balance is voluntarily paid, the property is sold, refinanced or foreclosed. State tax liens also trump any homestead exemptions in bankruptcy that are claimed by the taxpayer, as defined in California CCP As such, when a property is sold or foreclosed upon, the state lien tax will get paid first, even prior to any homestead exemption that the taxpayer claims. TRANSFERS OF PROPERTY SUBJECT TO LIEN TO NEW OWNERSHIP Taxpayers can also technically transfer property that is encumbered by a state tax lien. Despite title on the property passing, usually through a quit claim deed or another type of reconveyance, the lien will continue to remain in full force against the property until satisfied or otherwise discharged. The lien will not attach to other property that is owned by the new owner, but will continue to affect the property rights with respect to the current property that it is attached to. The new owner may pay or otherwise satisfy the outstanding liability directly with the state tax agency which filed the lien in order to clear the property from further encumbrance.

8 8 ESCROW TRANSACTIONS AND NOMINEE LIENS Usually during the escrow process, tax liens will prevent a transaction from going through without the lien being fully satisfied. However, in situations where escrow closes without full and complete satisfaction of the liability, the State of California can file a nominee lien against the purchaser for the amount of the liability. Alternatively, nominee liens can be filed in cases where the taxpayer has transferred property into the name of another personal or a corporation/other entity, particularly where the taxpayer continues to exercise complete control over the subject property. AUTOMATIC FILING OF LIENS IN THE CASE OF INSTALLMENT AGREEMENT Usually liens are also filed in circumstances where an installment agreement is granted, particularly when the taxpayer has a history of non-compliance or nonpayment. After all, liens are a security interest in order to protect the government s interest. Non-compliance by the taxpayer would cause the government to feel nervous about the taxpayer s intentions to satisfy the liability. Tax lines are usually filed in situations where the taxpayer owes more than ten thousand dollars ($10,000) and in situation where a lien has not been previously filed. Prior to the filing of any liens, the collection agent will notify the taxpayer of the intent to file a lien in order to satisfy due process requirements. RELEASES AND WITHDRAWALS OF LIENS Once a State Tax Lien has been recorded, absent a withdrawal of the lien being filed in error, a release of lien must be filed to establish that a lien is satisfied or no longer valid. Absent a release, the lien will continue to encumber property, even if a liability has been full paid or conditions have otherwise been met for release. In most cases, liens are released by the state of California when they are paid or otherwise fully satisfied. However, there are certain situations where a state tax lien can be released without being satisfied. These are:

9 9 It is determined that the amount due to the state of California is sufficiently secured by a state tax lien on other property and the release of the lien will not jeopardize collection activity. In these circumstances, the taxpayer is granted a partial release of lien, which full removes the state tax lien from a specific piece of property as described in the partial release. Any other property owned by the taxpayer or that comes into the taxpayer s possession at a later date will remain subject to the lien. However, it is important to note that through a subordination of lien (discussed later), a state tax agency can acquiesce to another lien and have it take priority over the state tax lien, even though it would not otherwise take priority of claim. It is determined that the liability underlying the state tax lien has now become unenforceable due to bankruptcy, statute expiration, or some other reason under state/federal law. A lien has been recorded in error by tax agency staff. In those instances, the tax agency must send a copy of the release to the three major credit reporting bureaus. A lien is considered filed in error when: 1. The liability was satisfied, in full, prior to the lien recording date. 2. A fully paid return, zero balance, or refund return was filed. 3. A timely protest was filed prior to a lien. 4. An audit report is in litigation 5. A lien was filed with an incorrect name, social security number, entity name, EIN number, corporation number, or limited liability number. 6. A lien was filed without giving sufficient notice or meeting due process criteria, filed while the taxpayer was in bankruptcy, or filed while the taxpayer was in an active installment agreement and not in violation of the terms of the agreement. 7. Taxpayer provides documentation that there was no additional tax due. PARTIAL RELEASE OF LIEN: A partial release of lien fully removes the lien from the piece of property designated in the partial release of lien. All other property owned by the taxpayer is still subject to the lien and any subsequently acquired property by the taxpayer. A partial release of lien must be approved a collections supervisor and must be approved by the Collections Division Chief. Partial release of liens are authorized when collections make the determination that a liability is sufficiently secured by a taxpayer s other property and/or that the release of lien will not jeopardize the collection of the liability. Partial releases of liens are commonly granted when property is no longer owned by the taxpayer, where the lien is creating a hardship for someone other than

10 10 the taxpayer, or when the taxpayer is selling property that is insufficient to satisfy the liability and the best interest of the state tax agency is to accept less than the full amount of the liability. In order to request a partial release of lien, the following information is needed: An explanation as to why the taxpayer is requesting a partial release of lien A closing statement or other reconciliation prepared by escrow or whomever is in charge of holding funds A preliminary title report A full documentation of the fair market value of property via appraisal or some other reliable third party documentation Documentation that will substantiate the full payoff to lien holders or other third parties. SUBORDINATION OF LIEN: Subordinations of liens allow specific lien holders on specific pieces of property to take priority over the state tax agency, even though the other lien would not ordinary have priority over the state tax lien. A subordination of lien is different from a partial release of lien though. With a partial release of lien, the state s interest is discharged entirely on a particular piece of property. With a subordination, the state s interest still remains, but is just lower in priority. A subordination of line is discretionary, but will generally be approved when the state tax lien is sufficiently secured by other property and when collections is not jeopardized by the subordination. However, subordinations are particularly advantageous when a refinance is needed to save a piece of property or when a lender can potentially save a piece of property from foreclosure. With a subordination, a lender need not jeopardize their position due to state tax lien.

11 11 TAX COLLECTION AGENCIES OF CALIFORNIA California has three major tax authorities, each responsible for a different tax. All three are capable of placing liens and taking other legal action for unpaid tax debt. FRANCHISE TAX BOARD The Franchise Tax Board (FTB) administers and enforces the individual and corporate income tax laws in California. This includes residents and non-residents who have an income from the State of California. The FTB collects state income tax and property tax. It can record a notice of state lien for non-payment of state income tax in the appropriate county recorder s office. DIFFERENCE BETWEEN BOE LIEN AND FTB LIEN The FTB records liens for non-payment of state income tax or property tax, while the BOE records liens for non-payment of sales and use tax. Unlike the Board of Equalization, the Franchise Tax Board can garnish wages. The FTB may also record the lien with the office of the Secretary of State. THE PROCESS If you do not pay your entire state income tax liability by the time it becomes due and payable, the unpaid amount is subject to a state tax lien. Notification is sent to the taxpayer 30 days prior to recording a lien. Lien is recorded in the appropriate county recorder's office and with the California Secretary of State. The FTB records a certificate of release of lien no later than 40 days after payment in full of all taxes, interest, fees, and penalties. The Franchise Tax Board tends to require more disclosures and information than their IRS counterparts.

12 12 CREATE A PLAN Review IRS transcripts to identify any penalties and interest that can be removed and send an Abatement Request. Request an installment payment agreement. File delinquent returns and pay a one-time fee to set up the agreement. Make all payments in full and on time. The FTB will record a lien against your property to secure the debt until it is paid in full. PAYMENT MAY BE MADE BY: Web Pay from checking or saving accounts Credit card Western Union Check or money order by mail or in person at the FTB field office Electronic funds transfer if business is the payer Cash is not accepted. If you think the FTB has filed a notice of state tax lien in error, you can dispute the lien by calling or writing the FTB. If your property has been taken improperly by the FTB, you have a right to a hearing. You may file a reimbursement claim for charges and fees within 90 days of the erroneous action. The FTB will use any and all legal authorized means to collect on an account. It can be more aggressive in its deadlines and collection methods than the IRS. It also requires more information and other disclosures on your financial statement. The FTB is slower to resolve issues because there are more levels of administrative review. WEB PAY FROM CHECKING OR SAVING ACCOUNTS CREDIT CARD WESTERN UNION CHECK OR MONEY ORDER BY MAIL OR IN PERSON AT THE FTB FIELD OFFICE ELECTRONIC FUNDS TRANSFER IF BUSINESS IS THE PAYER

13 13 CONSEQUENCES OF NON-PAYMENT Wage garnishment Liens against real property Asset seizure Levy on bank accounts Interception of funds due you from the federal government, other states, and state agencies Damaged credit rating RELEASE OF LIEN PAYMENT IN FULL: payment of total tax liability plus penalties, accrued interest, and fees for the tax years represented by the lien. PARTIAL RELEASE: a release of state tax from a specific piece of property if the amount due is secured by remaining property under lien. REQUESTING RELIEF: file an Offer in Compromise if you do not have the means, assets, or income to pay your full liability now or in the foreseeable future. You may be required to enter into a collateral agreement for a term of five years.

14 14 EMPLOYMENT DEVELOPMENT DEPARTMENT The Employment Development Department (EDD) is the largest tax agency in California. It administers and collects payroll tax, unemployment, and state disability insurance for about 17 million California workers. The collection offices are often based locally and contact customers, vendors, and other third parties. The EDD can levy bank accounts, redirect incoming accounts receivables, file liens, and seize assets. DIFFERENCE BETWEEN EDD LIENS AND OTHER TAX LIENS Unlike the other two taxing agencies, the EDD will accept payment in cash. It also files a state lien in all instances of an approved installment agreement. Refunds due you from any other state agency will automatically be applied to the unpaid tax. The EDD has the right to place a lien on employers who do not submit required payroll taxes but not for non-payment of income tax or sales tax. The EDD places liens against: all property rights and rights to property whether real or personal, tangible or intangible, including all subsequent acquired property and rights to property belonging to the taxpayer. The EDD can issue a Notice of Levy on credits or personal property of any delinquent account, active or inactive. THE PROCESS EDD sends out Employer Account Statements when employers owe past due payroll tax or do not submit quarterly or annual reports when due. Employers who do not file and pay liabilities are subject to a state tax lien.

15 15 CREATE A PLAN Contact the EDD at once if you cannot pay the liability in full. Obtain a commercial loan or look into other means to pay the tax debt. The California Unemployment Insurance Code does not provide for installment payment agreements, however, if immediate and full payment of payroll taxes would create a financial hardship and no other method of payment is available, an installment agreement may be requested. A hearing officer will determine if any withholding order should be upheld, modified, or released. Payment can be made using cash, Cashier s checks, or money orders. If the employer fails to adhere to all terms of an installment agreement and submit all future returns and payments on time, collection actions will be initiated immediately. There is no waiting period. The agreement may also be canceled if the EDD discovers pertinent information was withheld. If you wish to dispute a lien, you must speak with an EDD representative, a supervisor, and an office manager before you can appeal actions to the California Unemployment Insurance Appeals Board (CUIAB). EDD requests often include years or periods where the workers in question were not employed with the company. The agency can levy significant liabilities that can cripple a business or drive into insolvency. Deadlines are very aggressive, and levies can be made on most financial institutions. CONSEQUENCES OF NON-PAYMENT Liens filed against real or personal property Notice of Levy to financial institutions and/or other parties Warrants to seize and sell business or personal assets, except for the debtor s primary residence Issuance of Earnings Withholding Orders for Taxes Criminal charges Redirection of accounts receivable

16 16 RELEASE OF LIEN PAYMENT IN FULL: demand for release must be requested in writing by mail or fax to the EDD in Sacramento, CA. You must include the name, address, phone number, employer account number lien certificate number, and whether the response should be mailed or faxed. PARTIAL RELEASE: The escrow company will be required to make payment on the lien with certified funds after notifying the EDD in writing or via fax with a demand for a release of lien on the property under consideration. REQUESTING RELIEF: If an account is both inactive and out of business, an Offer in Compromise may be granted.

17 17 BOARD OF EQUALIZATION (BOE) The Board of Equalization administers sales and use tax. Sales tax is imposed on individuals and businesses in exchange for the privilege of selling goods in California. It is measured by subtracting non-taxable sales from the business s gross receipts. In general, sales tax is passed along to the consumer. A use tax is paid on an item purchased for use inside the state from an out-of-state retailer. The BOE acts in two phases: Assessment and Collections. The Assessment Phase is when the BOE will try to assess as many people as possible to increase the number of collection targets. In the Collections Phase, the BOE will send collections officers who often demand large payment amounts from businesses by threatening a levy. People involved with a corporation, whether or not they hold ownership in it, can be held personally liable for the amount of sales tax owed. The BOE has the power to revoke the seller s permit as well. THE PROCESS The BOE invokes a lien against your property. The lien encumbers your California property, preventing you from refinancing, selling, or transferring it through escrow. The credit bureaus record the lien on your credit record, where it will remain for seven years. The BOE has the legal right to enforce collections, including bank levies and other asset seizures.

18 18 CREATE A PLAN First, pay as much as possible to minimize interest and penalties. Then create a plan to discharge the debt and pay any additional penalties. Request the consideration of a short-term (less than 12 months) or long-term (12 months or more) payment proposal. File current tax returns and prepayments on time. Present a complete financial statement and formal request for payment plan. Make payments on time and in full each period. An installment agreement can be terminated due to: Late payments Delinquent or partial payments Failure to disclose assets or income on the financial statement Failure to increase payment levels as requested on new assets or income Failure to comply with a review of financial status Payments can be made online, by credit card, and through automatic withdrawal. Interest will continue to accrue until the debt is paid off. To dispute a lien, communicate with the BOE as soon as possible by phoning or writing to the BOE office that sent the bill, or by visiting the nearest BOE office. CONSEQUENCES OF NON-PAYMENT Encumbered California property Bank levies and other asset seizures Interception of state tax refund Civil warrant ( till-tap or keeper warrant) allowing the California Highway Patrol or local sheriff to enter your business and collect the gross receipts or contents of the cash register (till-tap). A keeper warrant allows a representative to remain at the business for one to ten days to continue to collect proceeds.

19 19 RELEASE OF LIEN PAYMENT IN FULL: payment of the full tax plus interest and other charges (or the taxing jurisdiction sets the bill balance to zero). Partial Release: release of state tax from a specific piece of property if the amount due is secured by remaining property under lien. REQUEST RELIEF: Contact the BOE as soon as possible. File all past due returns, even if you cannot pay. Pay as much as possible to avoid additional interest. If you have already paid your tax amount, you may be eligible for relief from the penalty, interest, or fees. OFFER IN COMPROMISE: Request to pay less than the amount due to settle liabilities that cannot be paid in full due to one of a specific set of circumstances.

20 20 HOW A TAX ATTORNEY CAN HELP Although generally the amounts in controversy are less with a state tax problem or with a state tax lien than with the Internal Revenue Service, California does not have the same system of taxpayer s rights in place that the federal system does. The tax law is not only arguably more complex in California, but the state tax representatives are often arguably more difficult to deal with. The state uses more aggressive collection tactics, uses them much more frequently, and demands more stringent payment terms from taxpayers than the federal government. All of this makes it much more difficult to not only deal with the state government, but to work out a resolution that allows people to maintain a reasonable standard of living (especially given the high cost living in California) and to continue to fund their businesses. A TAX ATTORNEY HELPS TO LEVEL THE PLAYING FIELD WHEN DEALING WITH THE STATE OF CALIFORNIA AND THEIR REPRESENTATIVES. A tax attorney helps to level the playing field when dealing with the state of California and their representatives. A qualified tax attorney understands not only the tax law, but understands the procedural framework under which that law is administered. A tax attorney understands the motivations of the state government and proposes solutions to tax problems that the state will be willing to accept while being a steadfast advocate for the needs of their clients. Our office never forgets that our job is to advocate for our client s interests and to protect the livelihood of those we represent. Ultimately a tax attorney should not be focused on finding a solution, but THE solution to a particular situation. That solution is defined by what the client s personal, professional, and financial goals are. If the actions being taken do not advance those goals and do not put the client in a better position than when they started, then those actions should not be taken at all. WE ENCOURAGE YOU TO SPEAK WITH A TAX ATTORNEY TO AT LEAST GET A SECOND OPINION State tax liens present a particular challenge to resolving tax issues because of their far reaching implications and immediate harmful impact of the lien itself. Although we are a big proponent of self-help for tax issues, we understand that state tax liens, as explained above, present unique challenges for those who are unfamiliar with tax controversies. Whether or not you chose to retain a tax attorney to deal with a state tax lien or with some other state tax issue, we encourage you to speak with a tax attorney to at least get a second opinion on the resolution that you are proposing and to potentially give you some input about the potential pitfalls that may arise.

21 21 ABOUT OUR FIRM Brotman Law was founded in 2013 after Mr. Brotman spent several years in private practice and completed dual master s degrees in tax law and business. The firm s ethic is rooted in several deep and personal beliefs about lawyers, how we can provide better service for our clients, and about the practice of law itself. Through personal experience, discussions with several colleagues, and through his own education, Mr. Brotman discovered there are several inefficiencies in the way that law firms are run and how client matters are managed. These inefficiencies, over time, tend to lead to a drop off in the ability of a lawyer to serve their clients, produce less than optimal results for the client, and lead to lower client satisfaction with the end result of their matter as well as lower attorney job satisfaction. It is these inefficiencies that are why people tend to have negative perceptions of lawyers and what cause lawyers to stray from what led them to law school in the first place: the desire to help people and advocate for our clients so that they can lead better lives. WE BELIEVE YOU CAN ACHIEVE GREAT THINGS WHEN FREED FROM THE BURDENS OF YOUR TAX PROBLEMS. We believe you can achieve great things when freed from the burdens of your tax problems. Our clients help and heal others, build and design, run businesses and households, and accomplish other incredible things on a daily basis. They excel at being great parents, spouses, sons, daughters, and friends. Part of the benefit of running a boutique tax practice is our ability to devote more resources to fewer people and to get to know those people better in order to help them achieve their goals. Undermining our actions on our clients behalf is our deeply held belief that you deserve to live your life, take care of your family, enjoy the products of your prosperity, and have your privacy free from the interference of the state. We believe that tax problems are best solved on our clients own terms and that tax debts or tax examinations should not hinder the client s ability to tend to what matters most. WE FOCUS ON THE PERSON, RATHER THAN THE PROB- LEM, AND PRO- VIDE SOLUTIONS THAT MAKE SENSE FROM A COST/ BENEFIT PERSPECTIVE. Our approach is to go beyond a simple Band-Aid to a problem and to present legal solutions to tax problems that adequately consider the client s personal, professional, and financial goals. We focus on the person, rather than the problem, and provide solutions that make sense from a cost/benefit perspective. We work efficiently, but completely resolving the issue that is at hand. We approach most situations by being cordial and professional with the state and their representatives while being steadfast advocates on our client s behalf. Understanding what is at stake for our clients and that they retain us for results, we will do what it takes and going to the highest levels possible in order to protect their rights and achieve their objectives. We remain relentless in our pursuit of the right result.

22 22 WE THANK YOU FOR TAKING THE TIME TO READ OUR COMPREHENSIVE GUIDE ON STATE TAX LIENS ALONG WITH AN OVERVIEW OF THE STATE TAX AGENCIES IN CALIFORNIA. IF YOU HAVE ANY QUESTIONS AS TO THE CONTENT OF OUR GUIDE OR ABOUT YOUR SPECIFIC SITUATION, PLEASE FEEL FREE TO REACH OUT TO OUR OFFICE DIRECTLY. BENEFITS OF WORKING WITH BROTMAN LAW: TOUGH, EXPERIENCED LEGAL TAX REPRESENTATION AN ADVOCATE WITH A THOROUGH UNDERSTANDING OF CALIFORNIA TAX LAWS DISCREET HANDLING OF YOUR TAX ISSUES IN-DEPTH KNOWLEDGE OF BOARD OF EQUALIZATION OPERATIONS A GUIDE TO CALIFORNIA STATE TAX LIENS CLICK HERE TO REQUEST A CONSULTATION