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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5 Common Mistakes Businesses Make When Filing Taxes

We all make mistakes. But in the tax world, even the smallest mistake could cause a huge problem for your business. An error or problem with your tax return could mean late processing — which could result in a delayed refund — an IRS audit,…
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Real Estate Investors: New Yearly Reporting Requirements

California law obligates owners of real estate investment property in California who later acquired non-California property in a 1031 exchange to file an annual informational tax return. [1] California requires this yearly filing to track…
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What is Corporate Tax Compliance?

For any business to succeed, it must follow the laws and regulations associated with it. Your business stays compliant when all employees — from the CEO down — are aware of what laws the company needs to adhere by. It’s essential to…
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What to Expect from Your Upcoming EDD Audit

The State of California’s Employment Development Department (EDD) is responsible for collecting employment payroll taxes to fund and administer unemployment and disability insurance, paid family leave, and other state programs. Beyond tax…

What Is an Offer in Compromise?

When you owe the Internal Revenue Service more than you can reasonably afford to pay, they may be willing to negotiate with you. That’s where an Offer in Compromise (OIC) can help mitigate your financial burden in this situation. An OIC…
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When Do I Need a Tax Attorney and When Do I Need a CPA?

It can be complicated to know when to contact a tax attorney versus when to reach out to a CPA, especially when you need help with your taxes. Both professionals can help you with tax-related issues, but despite their similarities, a tax attorney…
Business owners should be aware of the common mistakes when hiring and working with 1099 independent contractors
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6 Mistakes Businesses Can Make When Hiring and Working With Independent Contractors

Business owners hire independent contractors to help with specialized or contracted work. But, as a business owner, if you find yourself engaging in what may be considered an ‘employer-employee relationship’ with your independent contractor…
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Federal Net Investment Income Tax

The Net Investment Income Tax of 3.8% (IRC 1411) applies to unearned income – i.e. income from interest, dividends, annuities, royalties, rents (not derived from the ordinary course of trade or business). The tax, however, does not apply to…
How to manage an EDD Audit - Attorney help

Ways to Mitigate Your Risk of an EDD Audit

If you utilize contractors in your business, you are responsible for all of their financial, legal, and administrative paperwork. One of the most important responsibilities you are in charge of is withholding employment taxes and remitting them…
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What Is Form SS-8 and When Do I Need to Use It?

  Each industry has to follow specific hiring procedures and paperwork, particularly for tax and benefit purposes. When working with independent contractors, you must correctly label them for your business tax purposes. Yet determining who…
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Response to Article: “Are You Ready to Be Audited”

Laura Saunders wrote a wonderful article published in The Wall Street Journal  titled "Are You Ready to Be Audited?" The article provides great insight into factors that influence why the IRS selects certain taxpayers to be audited based…
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Hiring Your First Independent Contractor: What You Should Know

As a small business owner, you have a dependable team of employees to handle the bulk of your work, but occasionally you need to reach out to a third party for assistance with special projects or insights. These third parties, known as independent…