What To Do When EDD Investigates Your Contractors The California Employment Development Department has a Joint Enforcement Strike Force (JESF) with local and federal agencies dedicated to uncovering cases of worker misclassification. If you’ve been targeted for an audit there are steps you should take immediately to protect yourself and… [Read more]
5 Mistakes Businesses Can Make When Hiring and Working With Independent Contractors
You hire independent contractors to help you with specialized or contract work. But if you find yourself engaging in what may be considered an employer-employee relationship with your independent contractor hires, you may be contacted by the EDD and the IRS for a potential mislabeling claim. Mislabeling is one of… [Read more]
Ways to Mitigate Your Risk of an EDD Audit
If you utilize contractors in your business, you are responsible for all of their financial, legal, and administrative paperwork. One of the most important responsibilities you are in charge of is withholding employment taxes and remitting them to the appropriate agencies. Failing to do so (or improperly filing) can result… [Read more]
How to Handle a Misclassification Audit
Any company that utilizes both W-2 employees and 1099 independent contractors must be vigilant in classifying them correctly for tax purposes; as an employer, you are responsible for withholding and remitting employment taxes for the former group, but not the latter. Failure to properly classify your workers into their correct… [Read more]
The 4 Types of IRS Audits, and How to Navigate Them
The audit process begins when the IRS requires more information about your tax return, but what happens after that all comes down to the type of audit you’re getting. There are four varieties of audit, depending on the seriousness of your case, and they range from a mailed request for… [Read more]
The IRS Audit Process: What to Expect
You’ve just found out you’re being audited by the IRS, and you’re probably feeling overwhelmed. Fortunately, at Milikowsky Tax Law, we know that having a clear idea of how an audit works greatly improves your chances of it going smoothly. We’ve answered your top three questions about what to expect… [Read more]
Five Common Reasons the IRS May Audit Your Business
Every business owner fears the dreaded tax audit. It can be a headache, requiring a lot of precious time to retrace your steps the previous year and provide documentation to support the information on your tax forms. No one can predict an audit, but there are some common factors that… [Read more]
Sales Tax Audits: What to Know and How to Prepare
When businesses fail to pay taxes in California, the state does not hesitate to aggressively pursue what it’s owed. Most California businesses will have to endure an audit at some point. Even if your business has kept meticulous records and accurate ledgers for years, the audit process can be grueling…. [Read more]
IRS Appeals: What Are Your Options?
Audits from the IRS are not only stressful, but they can also disrupt your business and force you to change your operating practices. Some companies can afford to absorb the new additional taxes. For others, appealing an audit decision may be the best option to reduce taxes on issues they… [Read more]
