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.

Men looking at a graph
,

AB-5 ‘Gig Work Bill’ Goes Into Effect Jan 2020. Are you prepared if EDD comes knocking?

California employment law is changing and small business owners must be prepared. When Assembly Bill 5 (AB-5) goes into effect on January 1, 2020, employers will have to meet stricter standards when classifying workers as independent…
A woman working

Want to Start a Business in California? Here’s a Checklist for Your First Year

Are you ready to launch your own business in California? You're in for an exciting journey.  As of 2018, small businesses in California employ 48.8% of the employees in the state. As a business owner, you will be contributing to this…
contractors files

The NEW ABCs of 1099 Contractor Classification (AB-5)

In January 2020 California AB-5 will go into effect and many workers previously classified as contractors will be required to reclassify as W-2 wage earning employees.  The CA EDD has always had criteria by which employers can determine…
Woman talking to a couple
,

How to Prepare a Tax Return and Minimize Your Risk of Audit: A Guide for The Starting CPA 

Preparing and filing accurate business tax returns can be complicated. That's why so many business owners rely on CPAs to help them navigate the complexities of the tax world.  As a CPA, it is your responsibility to help…
Laptop and a calculator
,

Four Year-End Tax Questions to Ask Your CPA

Your CPA isn't just there to ensure that the numbers add up on your tax returns. They can also provide useful advice on how to manage your income for the year and estimate your tax liabilities going forward. A qualified and knowledgeable…
Woman handing paperworks to a man

Understanding Business Tax Rates By Entity Type

Understanding taxes as a new business owner can feel like learning a new language. There are complicated rules, and they apply differently to businesses based on entity type, size, and a number of other variables. The good news is that,…
Man and woman doing high five

Calculating Your Business Tax Liability: Federal and California State Tax Law 

States vary in their tax laws and in their allowable deductions for business owners. Because California’s state tax laws differ from federal tax laws, business owners in California should be attentive to ensure they comply with both…
Paperworks and a calculator

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…
Man using a pen and a calculator

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…
A lot of paper and an eyeglass

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…
Woman doing paperworks

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…
Men on a construction site

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…