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

Bank Deposits
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How to Respond to an IRS Audit in 2022 Part 2

IRS Letter 6323 and Bank Deposit Analysis In part two of our three-part series “how to respond to an IRS Audit in 2022” we discuss IRS letter 6323 and the bank deposit analysis. For every audit IRS opens, they conduct a bank deposit analysis…
Tax Calculation
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How to Respond to an IRS Audit in 2022 Part 1

IRS Letter 6323 and What to Do Before Contacting IRS Small business owners should be prepared in case the Internal Revenue Service decides to audit your business. Watch part one of our three part series for advice on how to defend your business…
Criminal Tax Investigation

Have You Been the Target of a Criminal Tax Investigation?

Common Types of Federal Tax Crimes  The law enforcement branch of the IRS is the IRS Criminal Investigation Division (CID). If you are under investigation for possible tax crimes, then you could be facing serious penalties, including criminal…
Before responding to an IRS audit letter, first identify the following five things: the taxpayer, revenue agent, tax years audited, triggering issue(s), and the deadline.
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IRS Audits Explained for Small Business Owners

As a small business owner, you may be wondering what the process is for an IRS audit. An IRS audit is when IRS reviews your tax return to ensure that you have reported your income and expenses correctly. The founder of Milikowsky Tax Law,…
edd can audit small businesses back 12 quarters
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How Far Back Can EDD Audit Your Small Business?

Employment Development Department (EDD) performs many services, but their primary role that impacts small businesses is collecting and auditing payroll taxes. Employers pay payroll taxes for W-2 employees, but not for 1099 independent contractors.  The…
Can IRS summons your bank records
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Can IRS Summon Your Bank Records?

The Internal Revenue Service (IRS) has the power to investigate the finances of a taxpayer if they believe the taxpayer is withholding assets. One tool IRS uses to do this is a bank summons, which is a legal document that requires your bank…
follow our five steps to make sure your business is ready for an IRS audit
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Five Signs Your Small Business is Prepared for an IRS Audit

Internal Revenue Service (IRS) will flag businesses for an audit when the agency finds suspicious activity in your business’ tax returns. The suspicious activity may be innocent in nature, but IRS performs an audit to ensure your business…
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IRS Audits and the Impact from the Budget Reconciliation Bill Explained

On Sunday, August 7th of 2022, the Senate passed the Budget Reconciliation Bill, or the Inflation Reduction Act, which includes nearly $80 billion in funding for IRS. More than half of the funding is set for enforcement. IRS aims to collect…
Revenue Agent Report - IRS
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How To Read an IRS Revenue Agent Report

If you've been through an IRS audit, you know that one of the most important documents you receive at the end is the Revenue Agent Report (RAR).  Many taxpayers may not know where to start when it comes to reading their Revenue Agent Report.  John…
use our small business tax guide to help you this season
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Ultimate Guide to Tax Law for Small Business Owners

What Taxes Does My Small Business Have to Pay? Small business owners may have to pay additional taxes on top of income taxes depending on if you have employees, how you classify your business, and your business expenses.  The various taxes…
What to do if IRS Audits your Business
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What to do if IRS Audits Your Business

Business owners may not be sure where to start if IRS audits their company. However, an IRS audit doesn’t have to feel stressful or disorganized. In this article, we’ll discuss a set of steps business owners can take if they find out they…
you have 30 days to appeal an SBA PPP Loan denial
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How to Appeal an SBA PPP Loan Forgiveness Denial

The U.S. Small Business Administration (SBA) is currently going through loan forgiveness applications to approve or deny claims. Businesses that filed for a PPP loan during the COVID-19 pandemic and used the funds correctly can apply for loan…