Sacramento Tax Attorney

No one looks forward to dealing with the Internal Revenue Service (IRS), Franchise Tax Board (FTB), or other tax agencies. This is especially true of California residents who face some of the highest, if not the highest, combined state and federal taxes in the nation. Luckily, The Goralka Law Firm can help you reduce your overall tax liability, or assist you with your tax audit and litigation needs. 

Tax Planning Success Stories

  • We obtained a $2,750,000 estate tax refund upon filing an amended or supplemental estate tax return ( IRS Form 706) that was sustained after an IRS audit. The original estate tax return was prepared by an experienced estate planning firm that represented the family for many years. The Goralka Law Firm was able to identify other reporting methods and additional deductions that provided the family a $2,750,000 estate tax savings, a transformational result.

  • For a client with an $88 million estate holding substantial income producing real property, we were able to provide a plan to transfer real property worth over $50 million out of his estate for estate tax purposes. In addition, only 3% of the value of the real estate was reassessed for property tax purposes, and the client receives approximately 84% of the net income from the property for life. The client retained control over the $50 million in property interests through control of the business entity and the Trust holding the property interests. The property tax on the properties was not reassessed upon the client’s death as would otherwise be required.  This provided a higher return on investment for these income producing properties.

  • Our Client received $2.9 million two weeks after changing his state of residency from California to Colorado. These funds were deferred compensation and retirement payments related to many years of services as a highly compensated employee for a national company while a California resident. The California Franchise Tax Board asserted that the funds were related to the services performed as an employee as a California resident and taxable to California. After an 18 month battle, we were able to establish that Federal Law precluded California from taxing these funds because my client was now a Colorado resident. The California Franchise Tax Board withdrew its notice as a result of the appeal and protest. The tax, penalties and interest saved amounted to approximately $1 million.

  • Family technology/service business operated as an S Corporation to be sold for $7 million. Two (2) specific structures were utilized to minimize tax and build wealth for the Seller and his family (our Clients). First, $2 million of personal goodwill was established for the Client. This was needed because of the ownership restrictions for S Corporation stock. This personal goodwill was contributed to a Split Interest Charitable Trust (the “Trust”) that provided the following two (2) benefits: (1) No capital gain on $2 million for the sale of the goodwill contributed to the Trust. Tax savings: $740,000 and (2) Received an Income Tax deduction of $900,000. This provided an additional tax benefit of $272,000. Total tax savings is $1,012,700. Client and Client’s wife receive income from the Charitable Trust for life providing an ongoing source of retirement income. Second, Client utilized a Structured Installment Sale for stock with a value of $3 million, which defers tax on the capital gain in the amount of $990,000 for 30 years. This provides an ability to invest more funds for retirement income that would otherwise be used to pay federal and state income taxes in the year of sale.

  • Clients own a Distribution and Manufacturing Business operating as an S Corporation. That business is worth $2.7 million. Clients also own a commercial building which is worth approximately $2.7 million in which the business operates. Clients seek to retire and transition business and the building to their son. He has been working in the business for may years.

    The Business: The S Corporation stock was transferred to their son by means of a Qualified Subchapter S Trust (“QSST”) that included upstream basis provisions. When either client dies, son will receive a basis step-up to the fair market value at the date of death in the shares of the S Corporation. Another basis step-up is received when the surviving Client dies. This means that the business could be sold then for no capital gain tax.

    The Building: The building will be transferred to the son utilizing a structure that prevents the reassessment of property tax at transfer or upon the Client’s death. The property tax will not be reassessed for the son’s entire life. This provides a significantly higher return on investment from the building. The
    building will be held in an LLC which is held by the upstream basis trust described above. Client will receive a basis step-up upon the death of each of the Clients. This means that the building could be sold after those deaths with little if any reassessment. If the building is not sold, then the son’s basis will be increased to the fair market value at the date of death. This provides for higher depreciation deduction which also increases the return on investment from the building.

Reducing Your Overall Tax Liability Through Advanced Tax Planning

Paying taxes is rarely a pleasant experience, but you may be surprised to learn that many taxpayers end up paying more than they are legally or ethically required to. With thoughtful planning, it's possible to significantly reduce your tax liability.

While many practitioners rely on generic, off-the-shelf products or strategies, a far more effective approach is to conduct a thorough analysis of each client's unique circumstances. This involves understanding their current situation as well as their long-term goals. Only then can we identify and implement the optimal strategy to minimize taxes in alignment with their objectives.

At The Goralka Law Firm, we are adept in working with lottery winners, business owners, investors, and individuals who experience high-income events, such as lawsuit verdicts, to reduce the associated tax burden. We leverage a wide array of strategies tailored to each client's needs, including but not limited to the following:

  • Charitable Lead Trusts
  • CRATs, CRUTs, & NIMCRUTs
  • Conservation Easements
  • Private Foundations
  • Family Corporations
  • Qualified Plans
  • Private Placement Life Insurance
  • NING/DING
  • Enhanced Installment Sale
  • Installment Sale Trust
  • Delaware Statutory Trust
  • Donor Advised Fund
  • Pooled Income Fund
  • Basis Shifting

The greater your assets, the more likely it is that you'll need to incorporate multiple strategies to reduce your tax liability. In many cases, advanced tax planning overlaps with estate planning as a way to ensure the long-term financial security of your loved ones. Business owners may also find that additional tax planning steps are necessary, such as using S corp status to reduce employment taxes.

tax goralka law firm

Providing Experienced Tax Audit and Litigation Representation

Receiving notice of an impending tax audit or litigation is a stressful experience, but The Goralka Law Firm can ensure your rights are protected throughout the process. We represent clients on substantial matters before the Internal Revenue Service, California Franchise Tax Board (FTB), the Employment Development Department (EDD), and the California State Board of Equalization (BOE).

Skilled legal representation is vital in serious tax matters—don’t put your financial future at risk by attempting to resolve these complex issues on your own.  Attorney John Goralka has passed the uniform certified public accounts (CPA) examination. Before opening his practice, he was an Income Tax Auditor and Hearing Officer with the California Franchise Tax Board. This practical experience makes him uniquely qualified to handle your tax-related legal needs.

We're Here to Help With Your Taxation Concerns

Whether you're worried about high taxes affecting your future financial security or need assistance with issues related to an impending audit or litigation, The Goralka Law Firm is here to help. The sooner you contact us for assistance, the more options you'll have for successfully addressing your concerns. 

Attorney John Goralka is certified by the State Bar of California's Board of Legal Specialization in both Taxation Law and Estate Planning, Trust, and Probate Law. There are only a handful of attorneys within the state who have earned these dual certifications, which means that The Goralka Law Firm is well-equipped to handle any tax-related questions or concerns you might have.

Contact us today to schedule a consultation. The Goralka Law Firm serves clients in the Greater Sacramento area and throughout California.