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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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…
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Removing a Federal Tax Lien

You’ve owed the IRS back taxes for some time and now a lien has been placed against your assets and property. What does this mean? If you’ve been hit with a federal tax lien, it’s important to know what you’re dealing with, so you…
Taxpayer reviewing types of IRS audits with their tax professional
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The 4 Types of IRS Audits, and How to Navigate Them

There are 4 types of IRS audits that taxpayers should be prepared to navigate. Each type has different requirements and effective strategies to correctly respond to the audit and resolve the issue.   Read on to learn about the procedures…
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The IRS Audit Process: What to Expect

You’ve just found out you’re being audited by the IRS, and you’re probably feeling overwhelmed. Fortunately, at Milikowsky Tax Law, we know that having a clear idea of how an audit works greatly improves your chances of it going smoothly. We’ve…
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When Can the IRS Come After a Business Personally?

Tax season can be an impersonal, bureaucratic nightmare for many business owners. But there’s a personal side to taxes, too. That’s because when you're a business owner, there can be a high level of personal risk involved. Your time,…
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5 Tax Tips for New Entrepreneurs

  It’s never too early to get a head start on planning your taxes — especially if you’re an entrepreneur starting a business of your own. Taxes for entrepreneurs work differently than those for full-time employees receiving annual W-2…