WELCOME TO THE MILIKOWSKY TAX LAW BLOG

Providing actionable insights and valuable information to help you navigate the complexity of tax law for your business.

What Happens When the Franchise Tax Board Disagrees With Your Federal Return

For many California business owners, federal taxes receive the most attention. Returns are prepared, filed with the Internal Revenue Service, and the assumption is that the same numbers flow directly to the state. In reality, California’s…
A woman reading a book

AB 5 Exemptions: What California Businesses Need to Know About Worker Classification

Why Worker Classification Matters Under AB 5 The ABC Test for Independent Contractors AB 5 became effective on January 1, 2020 and significantly reshaped California’s worker classification rules. The law introduced the ABC test as the standard…
, , ,

California FTB Tax Audit Guide: What You Need to Know

An FTB audit starts with a letter, but what follows is a structured process that can expand quickly. From the initial contact to the IDR, Audit Issue List, and potential Notice of Proposed Assessment, each step builds on how clearly your position is presented and supported. This guide walks through what to expect and how to stay organized and responsive at each stage.
,

Construction Business Owners Guide to EDD Audit Defense

Construction businesses operate in one of California’s most heavily scrutinized regulatory environments. EDD audits are common in this industry because subcontractors, short-term projects, and fluctuating labor needs create classification…
,

What IRS Audits Will Look Like in 2026: Key Risks for Real Estate Owners and Business Leaders

Editor’s Note: This article has been updated to reflect IRS enforcement trends and audit considerations for 2026. While the original URL references 2025, the information below reflects the most current guidance and developments. If…
, ,

Who Should Defend a Business in an IRS Audit?

When the IRS contacts a business, the question is not whether the notice is serious. It is who should stand between the business and the government. Many business owners assume an IRS audit is an accounting problem. It is not. An IRS audit…
, , ,

EDD Site Sweeps in California Construction, What Happens Next and How to Prepare in 2026

Consequences of EDD Site Sweeps If you run a construction company in California, it is important to plan for enforcement activity before it shows up on a job site. Many contractors do not realize they are at risk until investigators walk onto…
, ,

California EDD Audit Guide for Construction Businesses

Job Site Sweeps, Independent Contractor Classification Under AB 5, How Far Back EDD Can Look, and How to Prepare California construction companies continue to face a high level of scrutiny around worker classification and payroll compliance.…

For CPAs: Once Tax Season is Over, Audit Season Begins (We’ve Got You)

For CPAs, the calendar does not slow down after filing deadlines. The work simply changes shape. Tax season is about reporting, audit season is about proof. That shift matters because the agencies reviewing your client’s returns, payroll filings,…
, ,

My Business Received an EDD Audit Letter, What Do I Have To Do To Respond?

When a business receives an Employment Development Department (EDD) audit letter, the clock starts immediately. The state is signaling that it believes there may be errors in payroll reporting, worker classification, or tax filings, and failing…
,

How to Prepare for the 2025 1099 Filing Deadline

Editor’s Note: This article has been updated to reflect 2025 filing requirements. While the original version referenced 2024, all information below now reflects the correct deadlines and rules for 2025 filings. Filing 1099s can feel overwhelming,…
, , , ,

IRS Audits in 2026: New Rules, New Technology, and New Triggers Every Business Should Prepare For

IRS audits are changing in 2026. New reporting rules, expanded enforcement funding, and AI-driven audit selection are reshaping how taxpayers are identified, contacted, and reviewed. If you are a business owner or financial professional, staying…