California Residency and Taxes: What the FTB Looks For When You Leave the State

January 30, 2026 | Mike Habib, EA

California Residency and Taxes: What the FTB Looks For When You Leave the State

A Complete Guide to Establishing Non-Residency and Avoiding FTB Audits

Every year, thousands of Californians relocate to states with lower—or no—income taxes. Nevada, Texas, Florida, Arizona, and Washington have become popular destinations for individuals and business owners seeking relief from California’s top marginal rate of 13.3%, the highest state income tax in the nation.

But here’s what many departing residents don’t realize: simply moving to another state doesn’t automatically end your California tax obligations. The Franchise Tax Board (FTB) aggressively pursues former residents who claim to have left but maintain significant ties to California. These residency audits can result in years of back taxes, substantial penalties, and interest charges that dwarf any savings the move was supposed to provide.

As an Enrolled Agent based in Whittier, Los Angeles County, I work with clients across the country—and around the world—who face FTB residency challenges. Some come to me after receiving audit notices. Others are planning their departure and want to do it right from the start. In both cases, understanding exactly what the FTB looks for is essential to protecting yourself.

This guide explains California’s residency rules, the specific factors the FTB examines, and the steps you can take to establish clean non-residency when you leave.

S-Corp Tax Mistakes That Trigger IRS Audits

January 16, 2026 | Mike Habib, EA

S-Corp Tax Mistakes That Trigger IRS Audits

(And How to Avoid Them)

Electing S-Corporation status for your business can provide significant tax advantages, including avoiding double taxation and potentially reducing self-employment taxes. However, these benefits come with strict compliance requirements that the IRS monitors closely. When S-Corp owners cut corners or misunderstand the rules, they often find themselves facing audits, penalties, and back taxes that far exceed any savings they hoped to achieve.

As an Enrolled Agent based in Whittier, Los Angeles County, California, I work with S-Corp owners across the country who have run into IRS problems—often because of preventable mistakes. Whether your S-Corp is based in California or you’re operating in multiple states, understanding these common pitfalls can help you stay compliant and keep more of what you earn.

This guide covers the most frequent S-Corp tax mistakes that attract IRS attention, explains why the agency targets these issues, and provides practical steps to protect your business.

2026 New Year Tax Resolution

December 31, 2025 | Mike Habib, EA

Making 2026 the Year You Take Control of Your Taxes

As we step into 2026, many taxpayers find themselves carrying the weight of unresolved tax issues from previous years. Whether you have unfiled returns, outstanding tax debt, or looming concerns about potential audits, the new year presents a perfect opportunity to take decisive action and put your tax troubles behind you.

The reality is that tax problems rarely resolve themselves. Interest and penalties continue to accumulate, collection actions can escalate, and the stress of unresolved tax matters can affect every aspect of your life. However, the good news is that there are legitimate pathways to tax relief, and working with an experienced tax professional can help you navigate these options effectively.

This comprehensive guide explores the most common questions taxpayers have about achieving tax resolution in 2026, understanding their options for relief, and learning how to prevent future tax problems. Whether you are dealing with the IRS, California’s Franchise Tax Board (FTB), the Employment Development Department (EDD), or the California Department of Tax and Fee Administration (CDTFA), the information here can help you understand what steps to take next.

Mike Habib, EA: Executive-Level Tax Expertise for Businesses That Deserve It

December 19, 2025 | Mike Habib, EA

There’s a moment that changes everything for someone drowning in tax debt. It usually happens at 2 a.m., staring at an IRS notice that might as well be written in ancient Sanskrit. The numbers blur together—$50,000, $1,000,000, maybe much more—and the weight of it feels like trying to breathe underwater. Most people in this situation make a desperate call to one of those firms advertising on late-night television, only to discover they’ve reached a call center where their “case manager” is really just a salesperson reading from a script.

Mike Habib does things differently.

When you call Mike Habib, EA, you actually speak with Mike Habib. Not a junior associate. Not an intake coordinator. Not someone whose primary qualification is the ability to upsell you on services you don’t need. You get the man himself—an IRS-licensed Enrolled Agent with more than two decades of experience who has made it his life’s work to stand between hardworking Americans and the full might of the Internal Revenue Service.

New Bipartisan Taxpayer Rights Bills: What Los Angeles Taxpayers Need to Know

December 5, 2025 | Mike Habib, EA

If you’ve been following tax news lately, you might have heard about two significant bills that just passed the House of Representatives. But what do they actually mean for you as a taxpayer? And more importantly, how can they help if you’re facing IRS penalties or disputes?

As a Los Angeles-based Enrolled Agent who has represented many taxpayers through IRS audits, penalty disputes, and appeals at all administrative levels, I’m excited to break down these new developments. The FAIR Act and the Tax Court Improvement Act represent some of the most significant taxpayer protections we’ve seen in years, and they could dramatically change how the IRS handles penalty assessments and how taxpayers resolve disputes.

Let me walk you through everything you need to know about these bills, answer your most pressing questions, and explain how my firm can help you navigate these new protections—especially at the IRS administrative level where most tax disputes are actually resolved.

Nonprofit Taxpayers: What to Do If You Haven’t Filed Tax Returns in Years—A Complete Guide to Accounting, Bookkeeping, Compliance, and Avoiding IRS Scrutiny

November 28, 2025 | Mike Habib, EA

Nonprofit Taxpayers: What to Do If You Haven’t Filed Tax Returns in Years—A Complete Guide to Accounting, Bookkeeping, Compliance, and Avoiding IRS Scrutiny

By Mike Habib, EA – Los Angeles, CA

Introduction

If you’re a nonprofit leader, board member, or bookkeeper, you know your mission is to serve the public good. But what happens when your organization falls behind on IRS filings? Maybe you didn’t realize you had to file, or perhaps you were overwhelmed by other priorities. Now, you’re worried about penalties, losing tax-exempt status, or even an IRS audit.

You’re not alone. Many nonprofits—especially smaller ones—struggle with tax compliance. The good news? With the right knowledge and support, you can get back on track, protect your organization, and focus on your mission.

As an Enrolled Agent (EA) and founder of Mike Habib, EA, a Los Angeles, CA-based tax firm serving clients nationwide (including Americans abroad), I specialize in helping nonprofits resolve tax problems, represent them before the IRS and state agencies, and set up robust accounting and compliance systems.

This comprehensive FAQ will answer your most pressing questions about nonprofit tax compliance, accounting, bookkeeping, and how to avoid IRS scrutiny—even if you haven’t filed in years.

Tax Expert Los Angeles: How Mike Habib, EA Can Help You Resolve IRS and State Tax Issues

November 14, 2025 | Mike Habib, EA

If you’re searching for a tax expert in Los Angeles who can help you navigate the maze of IRS and state tax issues, look no further than Mike Habib, EA. Whether you’re dealing with an audit, back taxes, or just want to optimize your tax planning, Mike brings over two decades of experience, a national reach, and a personal touch that sets him apart.

In this comprehensive FAQ-style guide, we’ll explore how Mike Habib’s Los Angeles-based tax firm helps individuals, businesses, and even Americans living abroad resolve their tax problems and plan for a financially sound future.

Who Is Mike Habib, EA?

Mike Habib is a federally licensed Enrolled Agent (EA)—a designation granted by the IRS to tax professionals who demonstrate expertise in taxation and are authorized to represent taxpayers before the IRS. With over 20 years of experience, Mike has helped thousands of clients resolve complex tax issues, defend audits, and stay compliant with federal and state tax laws.

He’s not just a tax preparer—he’s a tax advocate, a negotiator, and a trusted advisor who works directly with the IRS, California Franchise Tax Board (FTB), Employment Development Department (EDD), and California Department of Tax and Fee Administration (CDTFA).

International Tax Controversy

November 7, 2025 | Mike Habib, EA

Transfer Pricing International Tax Controversy: An In-Depth FAQ

Transfer pricing is the method by which multinational enterprises (MNEs) set prices for transactions between related entities across borders, directly impacting how profits are allocated and taxed in different countries.
Controversies arise due to differing national rules, the risk of profit shifting, double taxation, and disputes over the “arm’s length” standard.
Recent developments (including OBBB, effective July 4, 2025) and ongoing OECD initiatives are reshaping the landscape, with increased scrutiny, new compliance requirements, and evolving dispute resolution mechanisms.

Los Angeles CDTFA Audit & Collection Representation: How Mike Habib, EA Can Help You Navigate the Process

November 1, 2025 | Mike Habib, EA

Los Angeles CDTFA Audit & Collection Representation: How Mike Habib, EA Can Help You Navigate the Process

Navigating a California Department of Tax and Fee Administration (CDTFA) sales & use tax audit or collection process can be daunting, especially for businesses and individuals unfamiliar with the complexities of California’s tax laws. Whether you’re facing a sales tax audit, use tax audit, or collection action, having an experienced tax professional by your side can make all the difference. At Mike Habib, EA, we specialize in CDTFA audit and collection representation, offering tailored solutions to protect your rights and minimize your tax liabilities.

In this article, we’ll explore the ins and outs of CDTFA audits and collections, answer frequently asked questions, and explain how our Los Angeles-based tax firm can help you achieve the best possible outcome.

Navigating IRS Payroll Tax Issues for Small Businesses: 941 Forgiveness Options

October 24, 2025 | Mike Habib, EA

Running a small business in Southern California is a rewarding yet challenging endeavor. Among the many responsibilities that small business owners face, payroll employment tax compliance is one of the most critical—and often one of the most stressful. Payroll tax issues, particularly those related to Form 941, can lead to significant financial and operational challenges if not addressed promptly. However, the IRS provides several options for relief, including installment plans, penalty abatement, and other programs designed to help small businesses resolve their tax debt.

In this comprehensive guide, we’ll explore the most common payroll tax issues SoCal small businesses face, the options available for resolving employment Form 941-related problems, and strategies for navigating IRS processes effectively. Whether you’re a small business owner or a tax professional, this article will provide actionable insights to help you address payroll tax challenges with confidence.

Understanding Payroll Taxes and Form 941

What Are Payroll Taxes?

Payroll employment taxes are federal taxes that employers are required to withhold from their employees’ wages and remit to the IRS. These taxes include:

Federal Income Tax Withholding: Based on the employee’s W-4 form.
Social Security and Medicare Taxes (FICA): Both the employer and employee contribute to these taxes.
Federal Unemployment Tax (FUTA): Paid solely by the employer to fund unemployment benefits.

Payroll taxes are considered “trust fund taxes,” meaning the employer is holding these funds in trust for the government. Failure to remit these taxes can result in severe penalties, including personal liability for business owners under the Trust Fund Recovery Penalty (TFRP).

Tax Relief Blog

California Residency and Taxes: What the FTB Looks For When You Leave the State

S-Corp Tax Mistakes That Trigger IRS Audits

Making 2026 the Year You Take Control of Your Taxes

Transfer Pricing International Tax Controversy: An In-Depth FAQ