Welcome to Faucher & Associates – Legal Solutions to Financial and Tax Problems

We focus on tax and bankruptcy law in Southern California: helping local debtors get discharged from debt, particularly tax debt; helping to lower tax debt via challenges to IRS determinations at audit and litigation stages; helping creditors recover what they are entitled from bankrupt estates; helping settle disputes between debtors, creditors, and bankruptcy trustees.  We know the tax and bankruptcy codes and the people who make these processes work.

  Call 818/889-8080 now to find out how we can help with your financial, tax, and legal problems.

 Se Habla Español

John Faucher consulting a clientJohn Faucher, principal of the firm, practices at the intersection of tax and bankruptcy law because he finds this legal practice offers an invigorating mixture of client counseling, problem solving, court appearances, litigation, and helping people in difficult circumstances.  Before going into private practice in 2009, John worked for almost a decade as an attorney for the U.S. Treasury Department, Internal Revenue Service.  While there, he defended IRS tax audits in tax court and represented the IRS in bankruptcy proceedings.  John has also worked as corporate counsel for Coastal Corporation in Houston, Texas, and for other private partnerships.  In 2014, John earned a Certificate of Specialization in Bankruptcy Law from the State Bar of California.

2014-08 JDF photoIn larger bankruptcy and tax issues, John Faucher often teams up with other attorneys with expertise in these areas.  Please see Our Attorneys for more information on the attorneys with whom we routinely associate.

 Download the  free Tax Audit Trail Pamphlet Here.

 

Tax Season is Phishing & Scam Season

I recently received an email solicitation — purporting to be from the IRS — claiming I was eligible for a refund and asking me to click a link to process my return for the refund. Here’s a copy of it.  It is shamelessly not from the IRS: the return email address has nothing to do […]

Posted in Uncategorized | Comments Off on Tax Season is Phishing & Scam Season

If You Sign Your Tax Return, You’re Responsible For It — Even If You Use A Preparer…

My client called in a panic. He was being audited, and the IRS wanted to know why he claimed $2,500 in mileage expense on his Schedule C. My client doesn’t own a Schedule C business. The IRS also questioned my client’s $10,000 loss on his professional stamp collecting – another fictional activity. His tax preparer […]

Posted in Taxes | Comments Off on If You Sign Your Tax Return, You’re Responsible For It — Even If You Use A Preparer…

The IRS Appeals Officer & Process

When a taxpayer disagrees with the IRS auditor’s determination, the IRS assigns the matter to an appeals officer. This is a second, new IRS employee that the taxpayer can negotiate with. Importantly, as a taxpayer deals with successively-higher-level employees in the IRS, the discretion of each employee increases. Appeals officers almost always have more discretion […]

Posted in Taxes, Tax Litigation, Audits | Comments Off on The IRS Appeals Officer & Process

Account Transcripts: What the IRS Knows About You

Except for what you tell it, the IRS (and for that matter, state tax authorities like the FTB) doesn’t really know very much about you. But it’s worthwhile to find out what it does know about you. The IRS keeps information about taxpayers in transcripts, small files on its central computers. I find it invaluable […]

Posted in Uncategorized | Comments Off on Account Transcripts: What the IRS Knows About You

Alimony Not Tax-Deductible If Spouse Had to Sue to Collect

It’s satisfying when tax law actually does the right thing morally – such as providing a strong financial incentive to pay spousal support on time. Here’s an example. David and Christie Iglicki divorced in Maryland after eight years of marriage. David was ordered to pay Christie $735 per month in child support and $1,000 per […]

Posted in Taxes, Tax Collection Issues | Comments Off on Alimony Not Tax-Deductible If Spouse Had to Sue to Collect

The IRS *Never* Phones You As Its First Contact

My client has several years of unfiled tax returns. Like many people with several years of unfiled tax returns, he’s been putting off working with me. So I hadn’t heard from him for about six months when he called me in a panic. “I just got a call from the IRS,” he said. “The guy […]

Posted in Uncategorized | Comments Off on The IRS *Never* Phones You As Its First Contact

Wells Fargo: Worst Bank Ever? Part IV…

I’m cheered to see that others out there share my opinion of Wells Fargo Bank. For my prior screeds against this bank, see here, here, and here.  My rants against Wells Fargo may soon have as many volumes as the Harry Potter books. Seriously, I worried that my dislike of the bank might be overblown […]

Posted in Abuse, In the News, Loan Modification | Comments Off on Wells Fargo: Worst Bank Ever? Part IV…

US Tax Treatment of Foreign Bank Accounts

The United States has an unusual tax regime: it taxes its citizens and residents on their worldwide income, not just on what is earned in the United States. The only other country that does this is Eritrea. Can you even find Eritrea on a map? What else does it have in common with the United […]

Posted in Taxes, Tax Collection Issues | Comments Off on US Tax Treatment of Foreign Bank Accounts

I Don’t Do Magic

I don’t do magic (despite owning four bunnies that I could pull out of a hat). I say this because I occasionally have a client who has heard of a legal maneuver to solve her problem, yet is too good to be true.  In a particular case, my client faces a foreclosure on her home […]

Posted in Loan Modification, Bankruptcy Aftermath | Comments Off on I Don’t Do Magic

IRS Substitute for Return (SFR) Isn’t Always Nondischargeable

Debtors can discharge their taxes in bankruptcy so long as they meet certain tests: the three-year test, the two-year test, the 240-day test and no fraud. I lay it out in the first paragraphs here  and in the last paragraphs here . One of the tests is that the return has to have been actually […]

Posted in Taxes, Audits, Tax Collection Issues | Comments Off on IRS Substitute for Return (SFR) Isn’t Always Nondischargeable