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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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…
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Where Do IRS Investigations Take Place?

What To Do When IRS Calls on Your Business The job of IRS investigators is to validate their assumptions about your tax liability. When IRS investigators ask for an on-site visit, postponing that visit until after your Tax Attorney has…
Contractors misclassification is a blunder you don't want to make

EDD: 1099s vs Employees, Don’t Risk Misclassification

California Assembly Bill 5 (AB-5) is the new standard by which employers must classify employees. AB-5 took effect on January 1, 2020. Small business owners (SBOs) should familiarize themselves with AB-5 and the ABC test to avoid employee…
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The Tax Attorney: A CPA’s Secret Weapon

It’s relatively common to witness clients trying to decide whether they want to hire a Certified Public Accountant (CPA) or a tax attorney. Oftentimes, people are considering the two as if the two professionals are interchangeable. The truth…
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CPAs: How to Protect Yourself If You Suspect Your Client is Under Criminal Investigation

  When it comes to financial matters, certified public accountants (CPAs) cannot use ignorance as a defense if their clients’ tax returns are later investigated. This is especially true if those financial matters involve legal issues —…
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What to Know When Your Client is Facing a Criminal Investigation by the IRS

  There are few calls less welcome than a call from the IRS. It could come directly to your accounting office or you might hear from a client after they have been contacted. Either way, you need to take the issue seriously and act carefully…