If you are currently being audited by IRS or EDD, be certain that you get a delay or postponement in writing.
IRS and EDD are still auditing. The outbreak is not stopping work at CA EDD or IRS. Despite the chaos caused by the recent outbreak of coronavirus COVID-19, both the IRS and EDD will continue auditing individuals and businesses, as normal tax deadlines are still currently being enforced. If you are in the process of being audited, we recommend that you assume everything will move forward as usual, unless you are notified by an auditor or collection agent.
IRS and EDD Deadlines still hold.
If a request or demand for documents is still pending, it is correct to assume that the original deadline will still be enforced. You will be notified if your deadline has been extended to a later date or if your case has been closed. There are also certain restrictions in regards to when the government can assess you, which is typically a three-year deadline from the date that you file your tax return, whether it is for payroll or income tax purposes. If you have a recent notice, we recommend reaching out to the auditor to clarify the situation and determine whether or not your deadline to respond has changed.
AB-5 is a bill that was put into effect beginning on January 1st, 2020 and classifies workers as independent contractors or employees of the company. Because of this recent change to labor and payroll tax laws, the EDD has numerous on-going audits that it is continuing to pursue remotely. These audits are at the top of the priority list for EDD auditors, so we can assume that the government will continue to move forward with them.
Compliance is still mandatory.
Even as it continues to manage the COVID-19 outbreak, the government will always focus its efforts on maintaining a high level of compliance across all states. This means that if you have a payroll tax balance with the IRS or EDD, it is of the utmost importance to respond and fulfill any requests as quickly as possible.