Being audited by EDD can happen to anyone. It can be challenging to take a step back and see the audit process from an objective point of view, but maintaining your focus is essential to coming out ahead in the end. In this article, we discuss tips to simplify the… [Read more]
Heads up: The SBA will audit any company that receives a loan of more than $2 million
In early May, Treasury Secretary Steven Mnuchin announced that all companies who receive loans of more than $2 million in government relief will be subject to full audits from IRS. The Payroll Protection Program allows companies to have their loans forgiven, provided they spend the funds on payroll, benefits, rent,… [Read more]
What is an EDD Benefit Audit?
If you’re a business based in California, you’ve likely had dealings with the Employment Development Department (EDD). It is the responsibility of the EDD to collect payroll taxes and it conducts payroll tax audits of companies and businesses. In addition, the EDD conducts what’s called Unemployment Insurance (UI) benefit audits…. [Read more]
What is the Difference Between Criminal Tax Evasion and Civil Tax Penalties?
In the eyes of the federal government, there is a vast difference between a criminal tax fraud offense and a civil fraud offense. These differences focus primarily on the different burdens of proofs, penalties, statues of limitations, and defenses available to the taxpayer. For several reasons, often the IRS will… [Read more]
Can I Hire 1099s to Stay in Business During COVID-19?
As many companies work to reorganize their business model in light of COVID-19, hiring a 1099 to replace your full-time employees might be a great solution. However, there are a few things to consider before taking the step in hiring these workers. The passing of the new AB-5 regulations in… [Read more]
IRS is limiting certain enforcement actions
In a surprising turn of events, IRS is limiting certain enforcement actions. To read the entire article visit IRS.gov “The new IRS People First Initiative provides immediate relief to help people facing uncertainty over taxes,” Rettig added “We are temporarily adjusting our processes to help people and businesses during these… [Read more]
Coronavirus: Business Owners Can File for Unemployment
As the greater impact of coronavirus COVID-19 continues to worsen, it is important to stay up-to-date with the potential repercussions as a business owner. This year’s tax filing deadlines have been extended to July 15th which will offer some relief to business owners keeping cash in the business. If your… [Read more]
IRS Extends Deadline to Pay [and File as of 3/18] Taxes to July 15, 2020
This article was edited on 3/18 to reflect the update from IRS that businesses now have an extension not only pay but also to file taxes. IRS Extends deadline to PAY AND FILE taxes to July 15 for most individuals and businesses. The Trump administration has announced that most individuals… [Read more]
How IRS Criminal Investigations Start
IRS Criminal investigations begin with a suspicion of fraud and violations of: Internal Revenue Code Bank Secrecy Act Money laundering statutes …Among others. When IRS determines there is a case against a violator, they refer it to the Department of Justice. Why IRS Special Agents target a business for investigation… [Read more]
New Requirements For IRS Form 5472 (for Foreign Shareholders & Corporations)
Perception of the requirements for IRS Form 5472 for foreign businesses are influenced by the globalization of the economy. In the tech world we currently live in, the internet has almost eliminated country boundaries and has allowed foreign business to sell their products and goods all over the globe. This… [Read more]
