What Happens if I Receive an Inquiry of Record Notice?

Categories: California Tax Law

One of the most common audit calls I receive is from businesses who get an inquiry of record notice, or a pre-audit questionnaire. The EDD is going to audit you for three years. What they want to do is they’re looking for the independent contractors that you have paid, and they are looking to reclassify...

Read More

The Two Sides of the Taxing Agencies

Categories: General Information

There are two different sides to every taxing agency. There’s the assessment side and the collection side. On the assessment side, when you file a tax return, you’re self assessing yourself. You’re saying, hey, government, I owe you $10. You can also be assessed by going through an audit, you review the documentation with the...

Read More

What is a California Residency Audit?

Categories: California Tax Law

Recently, I’ve gotten a lot of phone calls from people wanting to leave California. They don’t want to deal with the taxes or the regulation. And people call and want to know about residency audits. The State of California has three classifications for an individual: you’re a resident, you’re a non-resident, or you’re a partial-year...

Read More

Understanding IRS International Compliance: The Streamline Program

Categories: IRS

Understanding the IRS international compliance problems can be daunting. Some people are born in another country, have family members in another country, somebody passes away. Now they have a bank account or a piece of property that’s in their name. There are certain requirements when you file your tax return, you need to disclose these...

Read More

Help! My Dental Office Received an EDD Audit

Categories: California Tax Law

Dental office receiving an EDD audit.

I’ve received a lot of calls from California dental practices that are facing an EDD audit. If you’re a dentist or dental office, and if you’ve ever hired an independent contractor, you may want to familiarize your practice with the EDD audit. These California Employment Development Department (EDD) state payroll audits occur when a business has...

Read More

Do I Have to Pay California Income Tax If I’m Moving?

Categories: California Tax Law

Most people don’t want to pay California taxes. They end up contacting me because they are going to move to Florid, Texas or Nevada. I warn them to make sure they actually decided to relocate, move their family, move their house, move their driver’s license, move their car registration. If they’re actually moving and intend...

Read More

Will the Government Think I’m Guilty if I Hire a Tax Attorney?

Categories: IRS

One of the most common questions I get when someone reaches out to me for help is will the government agent, or agency, think I’m guilty because I hired a tax attorney? Will they think I’m hiding something or trying to run away from the government? I always answer the same way. Most government agencies...

Read More

What Happens if You Receive an EDD Audit Notice?

Categories: California Tax Law

Receiving an EDD audit notice can be a scary thing. The reason why you need to take it so seriously is because there’s a potential personal liability. When you go through an EDD audit, the EDD is generally looking to reclassify workers. You have paid somebody as an independent contractor. You believe they’re an independent...

Read More

How Do I Avoid an IRS Audit in 2021?

Categories: IRS

Loading bar 2021

No business owner or individual wants to deal with an IRS tax audit. As the year comes to a close, it’s a good time to review your financial records as you prepare to close out 2020 and file taxes early next year. Here are five things you can do to protect your business and possibly...

Read More