Is VPDI Deductible on Schedule A of a Tax Return?

Categories: California Tax Law

When it comes to California tax returns, there are a lot of questions about what expenses are deductible and what are not. One area that is often asked about is the Voluntary Plan for Disability Insurance (VDPI). Let’s look at what the VDPI is and whether it’s considered deductible on Schedule A for your tax…

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How is Coronavirus (COVID-19) Effecting Your Taxes?

Categories: California Tax Law

Everyone is affected by the Coronavirus (COVID-19) pandemic in this very uncertain time. From social distancing to quarantined living, our daily lives have changed for the foreseeable future. Tax season is also affected with filing and payment deadlines being delayed federally and in many states. Here’s a look at the changes for 2019 tax season….

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I Owe the IRS Money. How Will They Collect It?

Categories: IRS

Not much invokes fear like filing your taxes and realizing you owe the Internal Revenue Services (IRS) money. While the amount you owe can sometimes feel overwhelming, it’s important you at least make an attempt to pay it. If not, the IRS Collections will get involved and attempt to collect what they’re owed. Let’s look…

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What is the Statute of Limitations for an EDD Audit?

Categories: California Tax Law

Many California business owners have been faced with a new challenge over the last year, and that is the EDD audit. This type of audit occurs when the California Employment Development Department (EDD) launches an investigation into a business’ California state payroll tax records to determine if the business has classified a worker as an…

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Independent Contractors vs. Employees: What California’s New Law Means for Your Business

Categories: California Tax Law

California’s new law, Assembly Bill (AB) 5, went into effect on January 1 of this year, and it’s already raised several questions for both companies and independent contractors about what it means for their future business dealings. AB5, also known as the “The Gig Worker Bill,” determines whether California workers are employees or independent contractors,…

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How Do I Handle an IRS Audit?

Categories: IRS

There are few things that provoke such fear in a person than receiving an audit notice from the Internal Revenue Service (IRS). While getting audited can be a scary prospect, it doesn’t mean you necessarily have to face major financial penalties. That being said, if you are facing an IRS audit, it’s important to take…

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What is an EDD Benefit Audit?

Categories: California Tax Law

If you’re a business based in California, you’ve likely had dealings with the Employment Development Department (EDD). It is the responsibility of the EDD to collect payroll taxes, and it conducts payroll tax audits of companies and businesses. In addition, the EDD conducts what’s called Unemployment Insurance (UI) benefit audits. The federal-state unemployment insurance system…

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Can the Voluntary Classification Settlement Program Help Me Avoid an IRS Audit?

Categories: California Tax Law

If you’re a California taxpayer and business owner, chances are you’ve heard of the EDD audit. This occurs when the California Employment Development Department (EDD) launches an investigation into a business’ California state payroll tax records to determine if the business has classified a worker as an independent contractor instead of an employee. The EDD…

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I Got Hit with an IRS Audit. What Should I Do?

Categories: IRS

Have you received a notice from the Internal Revenue Service (IRS) stating that you’re being audited? You’re not alone. Many California taxpayers go through the IRS audit process at some point. The first thing to understand is how the IRS selects individuals or businesses for audits. They are both random and selective. Often times, the…

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Are EDD Audits Random?

Categories: California Tax Law

I receive many questions from taxpayers and businesses facing audits by the California Employment Development Department (EDD). One of the questions I hear a lot is whether these audits are random, and what a business can do to prevent facing this process. Let’s look at what an EDD audit is, and whether this is random or…

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