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]
Federal Net Investment Income Tax
The Net Investment Income Tax of 3.8% (IRC 1411) applies to unearned income – i.e. income from interest, dividends, annuities, royalties, rents (not derived from the ordinary course of trade or business). The tax, however, does not apply to interest from tax-exempt bonds, veteran’s benefits. This tax does applies to… [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]
What is Form SS-8 and When Do I Need to Use It?
Each industry has to follow specific hiring procedures and paperwork, particularly for tax and benefit purposes. When working with independent contractors, you must correctly label them for your business tax purposes. Yet determining who is an independent contractor and who is an employee can be challenging. If you accidentally mislabel… [Read more]
I Missed the Deadline to File Taxes: What Do I Do Now?
If you’ve missed the official deadline to pay your taxes, don’t stress. Getting back on track with your taxes is, in many cases, simpler than most people think. Whether you owe individual taxes or taxes for your small business, the easiest solution is to pay your taxes as soon as… [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]
The IRS is Coming After My Closed Business. What Do I Do?
When businesses close, they sometimes do not file taxes for their last year in operation. These taxes are still owed, and if any business has not closed its doors in accordance with state and federal laws, California’s Franchise Tax Board and the IRS will go after the money they’re owed…. [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]
