The job of IRS investigators is to validate their assumptions about your tax liability. When IRS investigators ask for an on-site visit, postponing that visit until after your Tax Attorney has had the opportunity to share the facts of the way your business runs with those investigators ensures that irreversible… [Read more]
EDD: 1099s vs Employees, Don’t Risk Misclassification
What To Do When EDD Investigates Your Contractors The California Employment Development Department (EDD) 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 EDD audit there are steps you should take immediately to protect… [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]
Response to Article: “Are You Ready to Be Audited”
Laura Saunders wrote a wonderful article published in The Wall Street Journal titled “Are You Ready to Be Audited?” The article provides great insight into factors that influence why the IRS selects certain taxpayers to be audited based on income and errors reported on a return. This blog dissects the… [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]
