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.

Hiring Independent Contractors Can Trigger a Criminal Investigation

For many business owners, hiring independent contractors feels like a practical way to manage costs and maintain flexibility. In California, that decision carries real legal exposure if it is not handled correctly. Worker classification is…

What a Tax Audit Actually Feels Like for a Small Business Owner

Running a business requires constant attention to operations, employees, and compliance. Over time, experienced business owners develop systems, processes, and instincts that allow them to manage complexity and keep things moving forward. When…

W-2 vs Independent Contractor in California: How Classification Decisions Impact Risk, Taxes, and Audits

Worker classification is one of the most important operational decisions a business makes. In California, that decision carries ongoing implications for payroll, compliance, and how your business is evaluated by state agencies. The distinction…
Failing to file a tax return may trigger  an unwanted IRS visit to your home or business.
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Failing to File a Tax Return May Trigger IRS to Visit Your Home

Unfiled tax returns are drawing increased attention from the Internal Revenue Service. For many individuals and business owners, the assumption is that if nothing is filed, nothing happens. That is not how the system works. The fact is that…

Received an Audit Notice? How to Respond Without Making It Worse

Receiving an audit notice creates an immediate reaction. Most business owners feel the need to act quickly, gather documents, and respond as soon as possible in an effort to stay ahead of the situation. That instinct is rooted in how businesses…
EDD Audits expand to 8 years 2026 - update
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EDD Audit Risk Is Expanding to Eight Years, What Business Owners Need to Know

For many California business owners, an EDD audit feels contained. There is an assumption that if something goes wrong, the review will be limited to a few recent years and can be dealt with accordingly. That assumption does not always hold. The…

California Use Tax vs. Sales Tax – Mastering CA Sales Tax Audits

Key Differences, Examples, and Audit Considerations for Business Owners If you run a business in California, understanding the difference between sales tax and use tax is essential to accurate reporting and long-term compliance. These two taxes…

Gratuity vs Tip: What Restaurants Need to Know About Sales Tax Audits

Operating a restaurant in California means working inside tight margins while navigating a tax environment that is anything but simple. Labor is variable, often shifting between full-time staff, part-time employees, and supplemental help. Pricing…
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What Triggers a California CDTFA Sales Tax Audit?

If you receive a notice from the California Department of Tax and Fee Administration, the first question that comes to mind is usually the right one: Why me? Sales tax audits in California are not random. They are typically triggered by identifiable…
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What to Expect During an EDD Audit: A Step-by-Step Guide for California Businesses

California EDD Audit Guide What Triggers an EDD Audit, What to Expect, and How to Prepare An audit from the Employment Development Department doesn’t usually arrive with much fanfare. For many businesses, it begins with a form that looks…
Guidance During an EDD Audit
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Do You Need an Attorney to Represent You in an EDD Audit?

For California businesses, few government interactions feel as disruptive as an audit from the Employment Development Department (EDD). Payroll records are requested. Worker classifications are examined. Questions arise about contractors, wages,…

CPAs: How to Help Your Clients Avoid (and Navigate) EDD Audits

California employers operate in one of the most closely monitored payroll tax environments in the country. The California Employment Development Department (EDD) oversees payroll tax compliance for unemployment insurance, employment training…