IRS & California Tax Blog

Security Clearance in Danger? How Tax Debt Affects Sacramento Government Contractors
Kugelman Law

Sacramento is a hub for the defense and aerospace industries, as well as federal agencies. For thousands of employees at Aerojet, Intel, or nearby Beale AFB, maintaining a security clearance is a strict condition of employment. Unfortunately, financial trouble is the number one cause of security clearance denial and revocation, falling under Guideline F: Financial…

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The Logistics Tax Trap: A Survival Guide for San Bernardino Owner-Operators
Kugelman Law

San Bernardino is the beating heart of the West Coast supply chain. From the mega-warehouses in Redlands to the transport hubs in Fontana, the logistics industry drives our local economy. But for the thousands of owner-operators and independent truck drivers who keep freight moving, the tax code is a minefield. Many drivers transition from company…

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The Deal Killer: How to Remove an IRS Tax Lien from Your Riverside Home
Kugelman Law

The Riverside real estate market has been a rollercoaster of equity growth. For many residents in Corona, Temecula, and Murrieta, their home is not just a place to live – it is their primary financial safety net. However, if you have unpaid back taxes, the IRS can lock down that equity with a Federal Tax…

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Unfiled Tax Returns in Riverside: Why the “Substitute for Return” (SFR) is Your Worst Enemy
Kugelman Law

Life in the Inland Empire moves fast. Between rising mortgage rates in Riverside and the daily grind of commuting, falling behind on administrative tasks is common. However, there is a massive difference between paying your taxes late and not filing a return at all. If you have unfiled tax returns from previous years, you are…

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Living in the Shadow of the FTB: Strategies for Sacramento Taxpayers
Kugelman Law

For most Americans, the IRS is the ultimate bogeyman. But for residents of Sacramento, there is a creditor far closer to home and often far more aggressive: the California Franchise Tax Board (FTB). Headquartered right here in Rancho Cordova, the FTB has unique powers and digital systems that allow them to collect debts faster and…

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IRS Audits in Riverside’s Construction Boom: A Contractor’s Survival Guide
Kugelman Law

Riverside County is currently experiencing one of the most significant construction booms in Southern California. From commercial logistics centers in Jurupa Valley to residential expansions in Menifee and French Valley, the industry is thriving. However, this visibility comes with a hidden cost: heightened scrutiny from the Internal Revenue Service (IRS) and the California Franchise Tax…

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Reasonable Compensation Audits: The Hidden Risk for Roseville S-Corp Owners
Kugelman Law

The S-Corporation is the entity of choice for many small businesses in Roseville, from medical practices on Douglas Blvd to tech consultants in Rocklin. The primary tax advantage is obvious: you don’t pay self-employment tax (Social Security and Medicare) on the profits (distributions) of the business, only on your wages. Naturally, this creates an incentive…

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Pig Butchering Scams: How to Claim a Theft Loss Tax Deduction
Kugelman Law

The rise of “pig butchering” crypto scams has left thousands of investors financially devastated. These sophisticated, long-con frauds build trust over months, convincing victims to invest huge sums into fake platforms before vanishing with the funds. If you have fallen victim to one of these schemes, you know the pain is not just emotional—it is…

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Trust Fund Recovery Penalty Defense
Kugelman Law

Received IRS Letter 3585? Defending Your Personal Assets in Trust Fund Recovery Investigations For a business owner or corporate officer, few pieces of mail are more alarming than an inquiry from the IRS regarding “unpaid Form 941 payroll tax periods.” If you have recently received IRS Letter 3585, or if a Revenue Officer has contacted…

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Setting Financial Resolutions: A Tax-Savvy Guide for 2026
Kugelman Law

As the new year approaches, many of us will set resolutions to improve our finances. We aim to save more, spend less, and invest wisely. But one of the most powerful tools for building wealth is often overlooked in New Year’s resolutions: strategic tax planning. By making tax-savvy financial resolutions, you can ensure that more…

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