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.

IRS Penalty Notice, Tax Audit, or Soft Letter: What’s the Difference?
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What Are the Different Types of IRS Notices?

There are a variety of different notices that IRS sends to taxpayers, not all of which are as intimidating as many assume them to be. To most, the initial response upon receiving any notice from IRS is a mild amount of panic and confusion. In…
Can IRS Take Money I Owe from an LLC Partnership?
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Can IRS Take Money I Owe from an LLC Partnership?

Tax season is often a daunting annual recurrence for business owners. For most businesses, this is because there’s a personal side of taxes too. As a business owner, there’s a high level of personal liability entangled in taxes.  Taxes…
Red Flags and Risk Factors
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Six Triggers of an IRS Audit

Risk Factors and Red Flags: Why IRS might audit you! An audit is, in itself, not a bad thing.  we have come to equate audit with accusation or wrongdoing but an IRS audit is simply a review of the records.  Int his spirit, there is no reason…
Why to File 1099s for All of Your Contractors

Why to File 1099s for All of Your Contractors

A 1099 worker, or contractor, is filed differently from a traditional full-time W-2 employee. While employees are eligible for benefits including worker’s compensation and federal unemployment, 1099 contractors are not. Businesses often utilize…
Tax Tips

Tax Tips for the 2020 Filing Season

It’s that time of year again, tax season. Needless to say, 2020 was an unexpected year for most. The COVID pandemic played a role in the lives of most, from corporate businesses to small mom and pop business owners. Government involvement…
IRS Tax Audit
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10 Ways to Avoid an IRS Tax Audit

While there is no official guaranteed way to avoid having your taxes audited by IRS, there are a few tips that you can follow to lower your likelihood of being audited. In 2019, IRS audited 0.45% of submitted tax returns. For reference, that’s…
Innocent Spouse
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IRS Innocent Spouse 

Let us tell you a story. Some 15 years ago, we encountered a case in which a man’s wife passed away.  In the subsequent months, he received credit card bill after credit card bill of which he had no prior knowledge. The bills added up to…
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EDD: Full Guide

The Employment Development Department (EDD) is the largest tax collection agency in the state of California. They’re responsible for collecting payroll taxes from over 17 million workers annually, accounting for over $31 billion in tax payments.…
Prop 19
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Additional CA Business Tax Rules

**UPDATE: 2021** Additional CA Business Tax Rules going into effect affecting states outside CA Tax season is upon us and the newest revisions to the California tax codes affect not only residents of the state but those who do business with…
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PPP Audits and SBA Loan Forgiveness: An Overview

Earlier this year the Coronavirus Aid, Relief, and Economic Security (CARES) Act offered businesses the opportunity to apply for loans under the Paycheck Protection Program (PPP). Businesses were eligible to receive up to as much as 2.5 times…
IRS
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What Does an IRS Letter Look Like and How Should I Respond?

Receiving a letter from IRS is often something that most don’t consider until forced to do so. Until taxpayers receive an IRS letter, there is often no reason to concern themselves on the subject. That being said, experiencing such a receipt…
SBA Pre-Audit Review

SBA Requires Borrowers to Submit “Pre-Audit Review” Information

Since its initial launch in April 2020, the Paycheck Protection Program has challenged recipients more than originally expected. What was once thought to be a no strings attached loan has now become a source of stress and worry for many of its…