Welcome to Faucher & Associates

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.

 

Set up your free phone consultation now! Call 818/889-8080.

 

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.

In 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.

 

So you want to buy something from a bankruptcy estate

More than 99 percent of all bankruptcy estates are “no-asset” cases, meaning that the trustee opens the case, talks to the debtor, looks at the schedules, and determines that the debtor truly has nothing.  (Or almost nothing: California law allows debtors to come out of bankruptcy with relatively small amounts of exempt property – see […]

Posted in Bankruptcy Procedure | Comments Off

Investment Activity and Your Tax Return

Have your Investment Expenses Been Disallowed on Your Tax Return? Most people know that they can’t claim losses incurred by a hobby – say, for instance, their side hobby of breeding and raising Great Pyrenees dogs.  No profit motive, no deduction of losses. Despite the profit motive in investing, the same rule goes for investment […]

Posted in Audits, Business, Taxes | Comments Off

If your Social Security Number is on it, it’s your money

A client recently had the FTB, Franchise Tax Board, garnish his son’s bank account.  His son didn’t owe the tax money; my adult client did.  But the FTB didn’t care; it took the kid’s money – $14,000 – and paid it to the father’s tax liability. The child had just turned 21.  His parents set […]

Posted in Asset Protection, Policy, Procedure | Comments Off

Why You Cannot Trust or Rely on What an IRS Agent Tells You

A client talked to the IRS about his back payroll tax issue.  The revenue officer said not to worry about it, that the account was not a high priority for the revenue officer and that they had time to work things out.  Two weeks later, the IRS levied on his payroll account, and his business […]

Posted in Asset Protection, Life Lessons | Comments Off

Can you be penalized for failing to file a fraudulent return?

When a Tax Court case opens with “petitioner is a fugitive from justice, living abroad, perhaps in Khartoum, Sudan,” I wonder whether the taxpayer can win against the government. When I further read about a state sales-tax audit leading to a law enforcement sting netting nine people in custody, but that the “petitioner avoided arrest […]

Posted in Crime | Comments Off

A Tax Protestor by any other Name Can Never Sail Sweetly

Is it true that there is no law requiring payment of income tax? My tenure as an IRS attorney caused me to think deeply about taxes, courts, and government. And it helped me see how I can help individuals who face the tax system. There are people – common in the San Fernando Valley – […]

Posted in Lawyering, Life Lessons, Seen in the Courtroom, Taxes | Comments Off

Declaratory Judgments for Dischargeability

When discharging taxes, I have always thought that it was the best practice to seek a judgment from the bankruptcy judge that the taxes are discharged. That’s because unlike many other nondischargeable debts (fraud, malicious tort, etc.), the debt may remain in force with no further word from the court. The IRS or the FTB could […]

Posted in Nondischargeable, Procedure | Comments Off

IRS and the Tea Party

A few months ago, the United States saw the political theater of Congress outraged at the IRS’s targeting of Tea Party organizations for special scrutiny on determinations of whether they qualified for tax-exempt status. It looked like the IRS was politically biased against conservative causes. The IRS, however, had a great defense that it didn’t […]

Posted in In the News, Taxes | Comments Off

It happens to the best of us

My mother-in-law, Margret, is in a nursing home. She knows who she is, but not much more than that. My wife does her taxes every year. And it’s usually pretty simple to do, because Margret’s income is fixed: some social security, some pension money from Mercedes-Benz, where her husband had worked for 40 years. I […]

Posted in Lawyering, Life Lessons | Comments Off

The audit that isn’t an audit

IRS has sent out tens of thousands of letters to small businesses asking them to explain the difference between the businesses’ receipts reported on the tax returns and reported by third parties, as well as the difference between the cash receipts reported on the tax returns and the average cash receipts for similar businesses (see […]

Posted in Audits | Comments Off