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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How to Avoid IRS Red Flags from Cash Transactions

Large or frequent cash transactions may make a business at higher risk of an IRS audit. While cash transactions are completely legal and a convenient industry standard for many businesses, frequently accepting cash payments can pose several…
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How to Effectively Respond to an IRS Notice

The IRS sends out millions of notices every year to correct tax returns, request more information from a business, update taxpayer information, verify a taxpayer’s identity, and more. As a small business owner, you are likely…
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Selling Business Assets That Are Subject to a Tax Lien: What You Need to Know

When you fall significantly behind on a government tax bill, whether that tax bill is attached to  your company or personal taxes, Uncle Sam looks for other ways to collect. One method includes staking a claim in your business interests. Not…
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Three Actions California Can Take to Collect Your Unpaid Taxes

Small businesses are likely to find that they owe the IRS money at the end of the fiscal year. If your focus is on continual business growth, you have likely pushed more of your cash into developing your business than saving for tax season…
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Your Guide to Navigating an EDD Audit

In the face of a perceived increase in the number of independent contractors, the California Employment Development Department (EDD) has begun a campaign of stricter enforcement of employment tax laws. With EDD conducting more audits of…
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The Dynamex Case, EDD and What the New Rules Mean for Your Independent Contractors

The California Supreme Court recently heard a case that is changing the rules on the classification of Independent Contractors in the state of California.  Previously, there were 13 factors that EDD would look at in assessing whether…
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Large Cash Transactions: Your Reporting Responsibilities and Penalties for Failing To File

Businesses who are paid in cash have a responsibility to report payments over $10,000 to IRS using form 8300.  Form 8300 is similar in function to a 1099 in that services paid for from one business to another usually generate a 1099,…
How to manage an EDD Audit - Attorney help
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The Small Business Owner’s Guide to Finding a Qualified CPA

As you search for the right CPA firm consider the following questions.  After all as a Small Business Owner, switching CPAs can be a daunting and time consuming task and you want to ensure that the firm you choose has the right…
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Small Business Owners: Mid-Year Review with Your Bookkeeper and CPA 

Summer is in full swing now and. if you're a business owner with sales that are heating up, this is the perfect time to take stock of your business’ financial situation. Mid-way through the year is the perfect opportunity to reflect and…
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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…