Categories: California Tax Law
One of the biggest issues facing California business owners and taxpayers this year is whether they will be faced with an EDD audit. These California Employment Development Department (EDD) state payroll audits occur when a business has classified a worker as an independent contractor instead of an employee. This means the EDD can personally assess…
Categories: Federal Tax
Tax season is officially upon us! It’s this time of year that I often receive panicked questions from clients telling me they’re being audited by the Internal Revenue Service (IRS) because they underreported their income. This is never a fun situation for anyone. But there are ways to handle the situation so it’s not too…
Categories: California Tax Law
One of the first things I hear from California business owners and taxpayers who are facing an EDD audit is this: “I just received an EDD audit questionnaire. How do I fill this out?” If you find yourself saying this, you’re not alone. If you’re not familiar with the term, an EDD audit occurs when…
Categories: California Tax Law
This is a common question that taxpayers have, and one I receive frequently if someone is facing a tax audit. Given that most people use a Certified Public Accountant (CPA) for tax preparation, you may assume that individual is the best person to defend you against a tax audit since they are familiar with your…
Categories: California Tax Law
If you’re a business owner and taxpayer in California, you may have heard the term EDD audit recently. Or perhaps you’ve faced this tax audit first-hand. If you’re not familiar with the term, an EDD audit occurs when the California Employment Development Department (EDD) launches an investigation into a business’ California state payroll tax records…
Categories: California Tax Law
Most taxpayers and business owners are unaware they can be held personally liable for payroll taxes of workers they consider to be independent contractors. Because of a recent case ruling – Dynamex Operations West, Inc. v. Superior Court of Los Angeles – the California Employment Development Department (EDD) is getting stricter with conducting these investigations,…
Categories: California Tax Law
Working with the IRS IRS employees are overworked and most of the time underpaid. They have a very difficult job and there are some simple ways that you can have a successful result when dealing with them. Be nice. IRS agents have horrendous jobs and have to listen to grumpy taxpayers all day long. Take…
Categories: California Tax Law
Working with an EDD agent? “I am working with an EDD agent, how was my bank account levied?” This is a very common question taxpayers have when they reach out for advice. California state employees are overworked and most of the time underpaid. EDD audits start when the EDD sends a letter that seems very…
Categories: California Tax Law
Understanding the Two Sides of Taxing Agencies Many successful business owners, attorneys, doctors, accountants have called me and said “money has just been taken from my business account” and I don’t know what’s going on. This is one of the biggest issues business owners and taxpayers have when confronted by a tax agency. Sometimes it…
Categories: Payroll Tax
Facing a California State Payroll Tax Audit? Most taxpayers and business owners do not know that they can be held personally liable for the payroll taxes of their business, even if it is a separate corporation. The EDD handles audits and collection of payroll taxes and maintains employment records for more than 17 million California…
