Many tax notices trace back to a few common situations: self-employment income, a rental property or investment sale, or a question about California residency. A tax attorney in Dublin, CA can read your letter, confirm whether the IRS or the Franchise Tax Board sent it, and explain what the agency wants. This page covers those triggers and the first response.
If your notice sets a response deadline, that date is the one to protect. Call (415) 754-0115 to schedule a free consultation, or use the contact page, and the date can be checked before it lapses.
Why Dublin residents receive tax notices
Notices are rarely random; they usually follow from how income was earned and reported. Recognizing the pattern behind yours makes the response far clearer.
Self-employment and Schedule C
Consultants, contractors, and small-business owners report business income on a Schedule C. Unpaid estimated taxes are a common source of balances, and business deductions are a frequent focus when a return is examined. Vehicle and home-office expenses, meals, and business income deposited into personal accounts are typical items an examiner asks about, because each depends on records made at the time. Our guide on an IRS audit when you're self-employed covers how a Schedule C is supported.
Rental and investment income
Rent, a sale of stock, or a home sale can create mismatches when the forms an agency receives from banks, brokers, or escrow do not line up with what was filed. Many of these mismatches produce automated notices proposing additional tax, each with its own response date.
Residency and part-year questions
People who moved into or out of California, or who split time between states, can face FTB questions about which income the state may tax. These inquiries turn heavily on documentation. Where you were registered to vote, where your car was registered, where your family lived, and where you spent your days all feed the analysis, and a remote or multi-state job can muddy the picture further. Year-by-year records of those facts usually carry the most weight. A move does not always end the state's interest, either: income earned while living in California, such as stock compensation that vests after a departure, can remain partly taxable by the state.
Reading the notice before answering it
Two questions come first: who sent the letter, and what kind of letter it is.
Who sent it
A notice from the Internal Revenue Service is a federal matter; one from the Franchise Tax Board concerns California tax. They have separate deadlines, programs, and collection powers, so a Dublin resident holding one of each has two problems to answer, not one.
What it is asking for
Some letters request information, some propose changes to a return, and some bill a balance that is already final. The difference decides what can still be argued.
Proposed change or final bill?
A proposed change is not yet a debt. It typically invites a reply by a stated date, and a timely, well-supported response may resolve it before it becomes an assessment. A final bill is different: the amount is set, and the conversation shifts to payment options and collection. Reading the notice heading and the response date closely is often the most important early task.
How a tax attorney in Dublin, CA responds
The response depends on whether the agency is examining a return or trying to collect a balance.
Audits and document requests
An audit asks the taxpayer to support what a return claimed. Many audits at both agencies are conducted entirely by mail, and the aim is to answer exactly what was asked, with organized records, so the review stays contained. Volunteering unrelated detail tends to widen a review rather than close it. If the result is still unfavorable, both agencies offer appeal routes with their own deadlines.
Collection holds
If a balance is already in collection, the work shifts to pausing liens, levies, or garnishments while a resolution is arranged. A levy on a bank account or a garnishment taking part of a paycheck cannot wait, and the first move is usually to contact the agency and show that a resolution is underway. Our overview of California tax debt relief with the FTB explains the state options.
Resolving the balance
When tax is genuinely owed, several paths can make it manageable: an installment agreement to pay over time, a hardship status when a household cannot pay without going without essentials, or, in narrow cases, a settlement for less than the full amount. An attorney can review your situation and explain which is realistic. For a plain-language starting point, see what to do if you owe back taxes. The Somal Law Firm, led by Bob Somal, Esq. in neighboring Pleasanton, handles IRS disputes, audits, and appeals through its tax law practice, and the firm offers a free consultation.
Frequently asked questions
How can I tell whether a letter is from the IRS or the FTB?
The sender's name and the notice heading show it. The Internal Revenue Service handles federal tax; the Franchise Tax Board handles California income tax. Each uses its own notice numbers and response windows, which an attorney can decode quickly.
What does a self-employment audit letter usually ask for?
Typically, support for specific income or expense items on the Schedule C, such as bank statements, receipts, invoices, and mileage logs. The letter lists the items under review, and responses generally work best when they stay within that scope.
Can a residency question really change my California tax?
Yes. California taxes residents on income from all sources, while nonresidents are generally taxed only on California-source income, so a residency determination can shift what the FTB may assess. Documentation of where you lived and worked is central.
A notice is far less unnerving once you know who sent it and why. Call (415) 754-0115 to schedule your free consultation with a tax attorney in Dublin, CA, or use the contact page if you prefer. We will identify the agency, protect your deadline, and lay out the response and resolution options that fit.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.