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.

JOhn mIlikowsky EDD DOL Final Ruling

Department of Labor Independent Contractor Final Ruling

On January 7th, 2021, the US Department of Labor (DOL) announced the updated ruling to clarify its interpretation of independent contractor status as part of the Fair Labor Standards Act (FLSA).  Overall, the ruling stands largely unchanged…
triggers edd audit
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What Triggers an EDD Audit?

EDD Audit Triggers Independent contractor filed for unemployment A disgruntled worker (1099 or W2) reported your company to EDD EDD “randomly” selects your company based on a computer algorithm – one factor is the larger % of…
how long does an edd audit last
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How Long Does an EDD Audit Last?

How long does an EDD audit last? If EDD selects your company for an audit of your contractors, you can expect the audit to last between 3 months and 9 months.   The purpose of an EDD audit The purpose of an EDD audit is to determine if your…
edd crim investigation
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Can an EDD Audit Turn Into a Criminal Investigation?

In short, yes. If you are paying workers who are not reported on a 1099 or W2 (for instance you are paying workers in cash and have no record of their payroll or payments), EDD may assess a fraud penalty and could open a criminal investigation.…
triggers irs audit
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What Triggers an IRS Audit?

San Diego Tax Attorney, John Milikowsky IRS selects returns for audit based on numerous criteria. Here are some common ways your return can be selected for an audit: You fail to report income that reported on a W2 or 1099 (this can be from…
IRS Penalty Notice, Tax Audit, or Soft Letter: What’s the Difference?
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What Are the Different Types of IRS Notices?

There are a variety of different notices that IRS sends to taxpayers, not all of which are as intimidating as many assume them to be. To most, the initial response upon receiving any notice from IRS is a mild amount of panic and confusion. In…
Can IRS Take Money I Owe from an LLC Partnership?
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Can IRS Take Money I Owe from an LLC Partnership?

Tax season is often a daunting annual recurrence for business owners. For most businesses, this is because there’s a personal side of taxes too. As a business owner, there’s a high level of personal liability entangled in taxes.  Taxes…
Red Flags and Risk Factors
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Six Triggers of an IRS Audit

Risk Factors and Red Flags: Why IRS might audit you! An audit is, in itself, not a bad thing.  we have come to equate audit with accusation or wrongdoing but an IRS audit is simply a review of the records.  Int his spirit, there is no reason…
Why to File 1099s for All of Your Contractors

Why to File 1099s for All of Your Contractors

A 1099 worker, or contractor, is filed differently from a traditional full-time W-2 employee. While employees are eligible for benefits including worker’s compensation and federal unemployment, 1099 contractors are not. Businesses often utilize…
Tax Tips

Tax Tips for the 2020 Filing Season

It’s that time of year again, tax season. Needless to say, 2020 was an unexpected year for most. The COVID pandemic played a role in the lives of most, from corporate businesses to small mom and pop business owners. Government involvement…
IRS Tax Audit
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10 Ways to Avoid an IRS Tax Audit

While there is no official guaranteed way to avoid having your taxes audited by IRS, there are a few tips that you can follow to lower your likelihood of being audited. In 2019, IRS audited 0.45% of submitted tax returns. For reference, that’s…
Innocent Spouse
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IRS Innocent Spouse 

Let us tell you a story. Some 15 years ago, we encountered a case in which a man’s wife passed away.  In the subsequent months, he received credit card bill after credit card bill of which he had no prior knowledge. The bills added up to…