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 Handle a Misclassification Audit

Any company that utilizes both W-2 employees and 1099 independent contractors must be vigilant in classifying them correctly for tax purposes; as an employer, you are responsible for withholding and remitting employment taxes for the former…
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IRS Strategic Plan: Increased Audits on Wealthy Taxpayers, Corporations, and Partnerships

The Internal Revenue Service (IRS) is making a significant shift in its approach to tax audits, focusing more intensively on high-income earners, large corporations, and complex partnerships. This new direction is outlined in the IRS's updated…
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5 Tips for CPAs to Minimize Audit Risk for Their Clients

If you are a CPA, here are 5 things to help your client reduce the risk of an EDD, IRS, or SBA audit: If you are a CPA, here are 5 things to help your client reduce the risk of an EDD, IRS, or SBA audit: 1: Confirm that your client’s…

For CPAs: Once Tax Season is Over, Audit Season Begins (We’ve Got You)

As a Certified Public Accountant (CPA), you know that the end of tax season doesn’t mean a break from the action. Just as the dust settles from tax filings, audit season kicks off. At this important time, having a robust strategy and support…
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IRS ERC Crackdown: 9 Red Flags Business Owners Must Review

The IRS is intensifying audits of Employer Retention Credit (ERC) claims. With over a million ERC applications received, totaling $86 billion in credits, the IRS is carefully scrutinizing each claim. Here are nine red flags that could trigger…
EDD Employee Misclassification Audit
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How to Prepare for an EDD Misclassification Audit

As a business owner the best way to prepare for, or avoid entirely, an audit from the Employment Development Department (EDD), is to make sure that you’re correctly classifying your employees. Whether your employees W-2 or 1099 employees or…
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Can SBA Audit a PPP Loan That is Already Forgiven?

Recently, businesses have experienced an increase in inquiries from the Small Business Administration (SBA) regarding the forgiveness of Paycheck Protection Program (PPP) loans that were previously forgiven. This raises a critical question:…
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5 Red Flags That Can Trigger an IRS Audit in 2024 [VIDEO]

As we move into 2024, the IRS continues to refine its focus during audits. Following are five areas of scrutiny that could trigger an IRS audit. Addressing these can help business owners safeguard against unwanted IRS attention. 1. Inaccurate…
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Secrets to the EDD Audit

Facing an EDD audit can be a nerve-wracking experience for any business owner. With potential assessments and disputes looming, it's crucial to approach the process with preparation and strategic insight.  John Milikowsky,  CEO…

Safeguarding Your Finances: Why You Need a Criminal Tax Defense Attorney in San Diego

Dealing with criminal tax charges can put your financial well-being at risk, making it crucial to seek the expertise of a skilled criminal tax defense attorney. In San Diego, having a knowledgeable legal advocate by your side can make all the…
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The CPA’s Guide to Helping a Client with an SBA PPP Loan Forgiveness Denial

When the COVID-19 pandemic wreaked havoc on small businesses, the U.S. government stepped in to offer some relief in the form of SBA PPP (Paycheck Protection Program) loans. Those loans were designed to help businesses keep their doors open…
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Don’t Be Duped Into Filing Unfounded ERC Claims (You Could Open Yourself Up to Criminal IRS Investigation)

As part of its annual Dirty Dozen campaign, the Internal Revenue Service (IRS) is warning businesses and individuals to steer clear of aggressive promoters offering questionable claims for the Employee Retention Credit (ERC).  These…