Bay Tax Services

A will takes effect only after death and must go through California's probate process, which is public, time-consuming, and can be costly. A revocable living trust allows assets to pass directly to beneficiaries without probate, maintaining privacy and often saving time and money.

Yes. The IRS Offer in Compromise program allows eligible taxpayers to settle their debt for less than the full amount owed. Installment agreements allow payment over time. Currently Not Collectible status suspends collection for those in financial hardship. Eligibility depends on your specific financial situation.

For routine tax preparation, a CPA or enrolled agent is often sufficient. However, when tax matters involve legal disputes — IRS audits, tax court, liens and levies, estate administration — an attorney provides legal privilege and advocacy that a CPA alone cannot offer. Bay Legal PC combines legal and tax expertise for complex California tax situations.

No. California does not have a state estate tax or inheritance tax. Only the federal estate tax applies to California residents, and only to estates exceeding the federal exemption ($13.61 million per individual in 2024).

Under Prop 19 (effective February 2021), most inherited California real property is reassessed to current market value at transfer, which can dramatically increase annual property taxes. The only exception is a primary residence transferred to a child who also uses it as their primary residence within one year, where a limited exclusion may apply.

Bay Legal PC offers free initial consultations. You can call (650) 668-8000, email through the website, or use the contact form. Bay Legal PC serves all 58 California counties with phone, video, and in-person consultations at their Palo Alto office.

Common triggers include statistically unusual deductions or income relative to similar taxpayers, unreported income identified through third-party information returns, multiple years of business losses, large charitable deductions, home office deductions, high cash business income, cryptocurrency transactions, foreign accounts, and simple math errors.

California LLCs pay an annual minimum franchise tax of $800 regardless of income, plus a gross receipts-based LLC fee for businesses with California gross receipts above $250,000. New LLCs are exempt from the $800 minimum in their first taxable year.