Tax Resolution · IRS · FTB · CDTFA · EDD · Los Angeles
Got a letter from theIRS, FTB, or CDTFA?Don't respond alone.
Tax notices from federal and California state agencies are time-sensitive and easy to mishandle. APX helps LA small business owners understand what they owe, what they don't, and how to resolve it — without overpaying or making it worse.
Bilingual — English & Spanish · Serving LA businesses doing $400K–$12M/year
California businesses face four layers of tax authority
The agencies that can disrupt your business —
and how APX helps you navigate each one.
- · Back taxes and unpaid federal income tax
- · Payroll tax (Form 941) delinquencies
- · Audit notices and examination letters
- · Installment agreement negotiations
- · Offer in Compromise eligibility
IRS issues are serious but often resolvable. Many small businesses qualify for payment plans, penalty abatements, or reduced settlements — but you need to know what to ask for.
- · California state income tax for businesses and owners
- · Minimum franchise tax ($800/year for LLCs)
- · Audit notices and proposed assessments
- · Back taxes from prior years
- · Estimated tax underpayment penalties
California's FTB can audit up to 4 years back — or longer if fraud is suspected. Many business owners are surprised to learn they owe California taxes even on income earned partly outside the state.
- · Sales and use tax audits
- · Unreported or under-reported sales
- · Retroactive assessments on prior quarters
- · Penalties for late or missed deposits
- · Industry-specific tax issues (restaurants, retail, auto)
CDTFA audits are common in restaurants, retail, and automotive businesses. They often go back 3–4 years and can result in assessments that include both tax owed and significant penalties.
- · Worker misclassification (employee vs. independent contractor)
- · Payroll tax delinquencies
- · Unemployment insurance audits
- · State disability insurance compliance
- · Wage reporting discrepancies
California's worker classification rules are among the strictest in the country. Misclassifying employees as contractors — even unintentionally — can result in years of back payroll taxes plus penalties.
The second opinion
Your accountant filed your taxes.
That doesn't mean the number is right.
Tax preparers work from the information you give them. If your books have errors, if expenses were miscategorized, or if deductions were missed, the return reflects those problems. A tax bill that feels wrong often is wrong.
APX offers a second-opinion review of your business tax situation — not to replace your CPA, but to make sure the numbers make sense and that you're not leaving deductions on the table or carrying a liability that could be reduced.
What a second opinion covers
- ✓ Review of prior 2–3 years of business tax returns
- ✓ Identification of missed deductions or misclassified expenses
- ✓ Assessment of any open IRS, FTB, CDTFA, or EDD issues
- ✓ Evaluation of entity structure (LLC, S-Corp, sole prop) for tax efficiency
- ✓ Recommendations for corrective action or amended returns
How APX helps
We don't just explain the problem.
We work through it with you.
Situation Assessment
We review all open notices, prior returns, and current books to understand the full picture — what's owed, what's disputed, and what's at risk.
Organize the Books
Most tax problems start with disorganized books. We clean up the records in Xero so any response to an agency is backed by accurate, defensible numbers.
Coordinate with Your CPA
APX works alongside your existing tax professional — not against them. We provide the financial clarity they need to respond accurately and negotiate effectively.
Build a Prevention Plan
Once the immediate issue is resolved, we put systems in place — deposit schedules, quarterly reviews, compliance calendars — so it doesn't happen again.
Important: APX is a business advisory firm, not a tax attorney or enrolled agent. For complex IRS negotiations or formal tax court proceedings, we coordinate with and refer to qualified tax professionals. Our role is to organize your financial position, provide clarity, and ensure you approach any resolution with accurate books and a clear picture of your situation.
Why California is uniquely complex
California has more tax agencies, more rules,
and less forgiveness than most states.
California businesses answer to four separate tax authorities — each with its own audit triggers, deadlines, and penalty structures.
California can audit your business tax returns up to 4 years back. Errors from 2021 can still result in a 2025 assessment.
California's AB 5 created the strictest independent contractor rules in the country. Many LA businesses are unknowingly out of compliance.
Why APX gets involved in this
We're Here To Help.
APX is built around one idea — help small businesses in Los Angeles grow stronger and become more resilient.
A tax problem doesn't have to end a business. In most cases, it's resolvable — but only if you understand what you're dealing with and approach it with organized, accurate financial records. That's where we come in.
Know a business owner dealing with a tax issue?