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Audit Controversies & Advocacy

Rex Halverson


Rex Halverson & Associates is a Sacramento-based State and Local Tax Practice founded by former California Deputy State Controller-Taxation, Rex Halverson. With extensive experience in California taxation, the firm represents individuals, businesses and corporations throughout the United States.

We advise and represent clients in all areas of state and local tax matters, including audit controversies, protests, assessment appeals, voluntary disclosures, settlements, offers in compromise, refund claims, ruling requests, drafting proposed regulations, statutes or amendments and lobbying the California Legislature. We specialize in audit controversies and appeals.

Sales & Use Tax Audits & Appeals

The best time to contact our firm is when you’re first notified by an auditor of the State Board of Equalization (BOE) that he or she wants to schedule a sales tax audit. We specialize in controlling the audit from day one. We will assist you with a pre-audit of your business records, setting the boundaries of the audit with the auditor, making sure that the sampling of invoices is fair and restricted in scope to relevant items. We will also research the law, regulations and annotations that pertain to your particular business. As part of our representation, we will file an appeal or refund claim, settlement proposal, or offer in compromise, as necessary and advocate on your behalf throughout the entire audit and the appeals process, including appearing on your behalf before the 5-member Board of Equalization. As the former Deputy State Controller-Taxation, I sat on this Board from 1995-98.

Income Tax Audits & Appeals

When the Franchise Tax Board (FTB) contacts you to schedule an audit most taxpayers are completely unprepared for what lies ahead. We can assist you. First, we will educate you about the audit, protest and appeals process; and, then seek to gain a full understanding of the issues and the law that is applicable. We specialize in voluntary disclosures, residency audits, audit appeals, removal of liens, settlements, offers in compromise, negotiations with the FTB and arguing before the appellate body, the Board of Equalization (BOE).

Payroll Tax Appeals

Generally speaking, most of our clients with payroll tax or employment tax problems are the result of a business going out of business, but we also see our fair share of penalty cases. The Employment Development Department (EDD) and the IRS automatically impose penalties for the slightest of errors in reporting and payment of payroll taxes. Often these penalties can be abated or waived, but the arguments must persuade the IRS or EDD that reasonable cause exists. That is where we can help.

Property Tax Assessment Appeals

For the individual taxpayer, a property tax appeal is a daunting task but it is actually quite simple so long as you are able to gather relevant evidence of your home being over assessed as compared to your neighbors. As for businesses, an assessment appeal can be an arduous process as the assessors do not want to relinquish control of tax dollars and will fight to hold onto every cent. Accordingly, an appeal can take years. To successfully appeal your property tax assessment, you need someone who has done hundreds of appeals. That’s us.