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.

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Risks of Misclassifying Independent Contractors and Employees

Risks of Misclassifying Independent Contractors and Employees Is the person you just hired a 1099 contractor or an employee? Making a false assumption could be costly. In California, there is a fine line separating these two categories…
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Uber Is Being Investigated for Tax Fraud

Al Capone | Leona Helmsley (AKA the Queen of Mean) | Spiro Agnew | Wesley Snipes (He thought he was Blade) The list of deplorable characters brought down for tax fraud may get another famous name… Uber.  The notoriously culture-challenged…
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Outlandish Tax Cheats

Many taxpayers hedge their bets when filing their tax returns but most of us are careful to pay our fair share and stay on the sunny side of the IRS.  Not so for these eight Americans who thought they could get away with cheating…
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Where Do IRS Investigations Take Place?

What To Do When IRS Calls on Your Business The job of IRS investigators is to validate their assumptions about your tax liability. When IRS investigators ask for an on-site visit, postponing that visit until after your Tax Attorney has…
Contractors misclassification is a blunder you don't want to make

EDD: 1099s vs Employees, Don’t Risk Misclassification

California Assembly Bill 5 (AB-5) is the new standard by which employers must classify employees. AB-5 took effect on January 1, 2020. Small business owners (SBOs) should familiarize themselves with AB-5 and the ABC test to avoid employee…
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The Tax Attorney: A CPA’s Secret Weapon

It’s relatively common to witness clients trying to decide whether they want to hire a Certified Public Accountant (CPA) or a tax attorney. Oftentimes, people are considering the two as if the two professionals are interchangeable. The truth…
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CPAs: How to Protect Yourself If You Suspect Your Client is Under Criminal Investigation

  When it comes to financial matters, certified public accountants (CPAs) cannot use ignorance as a defense if their clients’ tax returns are later investigated. This is especially true if those financial matters involve legal issues —…
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What to Know When Your Client is Facing a Criminal Investigation by the IRS

  There are few calls less welcome than a call from the IRS. It could come directly to your accounting office or you might hear from a client after they have been contacted. Either way, you need to take the issue seriously and act carefully…
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An IRS Special Agent Contacted Me (or My Accountant): What Now?

  Just the thought of being contacted by the IRS can be enough to make you sweat. Receiving a letter, phone call, or surprise visit from IRS Special Agents can be extremely stressful and frightening. Whether they’ve reached out to you or…
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Which Form Should I Use to Amend My Business Tax Return?

If you’ve made an error on your business’ or organization’s tax return, the federal government requires you to send in an amendment to correct and update your filing. It’s important to make these corrections as soon as you can, in case…
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What To Do If You Couldn’t Pay Your Business Tax On Time

Even if you pay your estimated quarterly taxes every three months, you may still owe more taxes than expected for the full year. In some cases, this happens because your business earned more than you initially estimated it would. While unexpectedly…
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What Are Back Taxes and How Do They Affect My Business?

  Back taxes occur when business or personal taxes are not filed and paid in full by their due date each year. They continue to accrue interest for as long as they remain unpaid, and many can incur a number of additional penalties as well.…