Taxation

General contractors who hire unlicensed workers and unlicensed subcontractors put themselves at risk for potential criminal action by the local District Attorney (DA) and they risk receiving a stop work order from California Contractor State Licensing Board (CSLB) if and when that agency performs a site sweep.   A site sweep occurs when and one of several government agencies, including CSLB, Employment Development Department (EDD), and the California Labor Commissioner, target a specific local area in which construction is being performed and physically show up on the active site to conduct a site inspection.    During a site inspection, workers…
The responsibility of caring for an aging parent often falls on a child or close relative. Often, the sibling that doesn’t work full time or is the most financially stable gets tasked with taking on the role of primary caretaker. While this role can be rewarding, it also comes with a lot of responsibility. That’s why it’s so important to figure out a plan ahead of time, and lay out how other family members can contribute, regardless of where they live. Here are some tips for dividing the responsibilities. Assess Your Skills When dividing the responsibilities of taking care…
The Internal Revenue Services (IRS) works swiftly when taxpayers fail to pay taxes on time, or at all. Failure to pay or late payment of taxes triggers an IRS notification to you or your business of noncompliance, and outlines the necessary steps to rectify that noncompliance. When those warnings are not acted on, further consequences and penalties ensue. Non payment of taxes can have  serious implications for you and your property in the form of a tax lien on your property.  Learn more about what tax liens are and how to avoid them here:  What is a Tax Lien? According…
When determining whether your workers should be classified as employees or independent contractors, it’s critical to ensure that you are closely following the Employment Development Department’s (EDD) strict guidelines.  On the simplest level, proper classification is determined by whether or not the principal, or employer, holds the “right of control.” What is “Right of Control?” Right of control is determined by who holds the “right to control the manner and means” by which work is performed.  A corporate administrative assistant, for example, reports directly to an executive who manages their work. Likely they work a classic Monday through Friday, 9…
Taking care of your aging parents is a big responsibility, and is a subject that deserves a lot of time and consideration. Not only will the lifestyles of your elderly loved ones change, but it will also affect the person who takes them in. There are a lot of factors to discuss before making a decision about which family member will care for your elderly parents. Here are a few things to consider. Do You Have The Time? When choosing whose home might best suit your aging parents, it’s important to ask yourself how much time and assistance you can…
After making the tough decision to move your aging parent or loved one out of their home and into a safer space, the next stage of the process can be just as difficult. Assisted living is usually the first step in a senior’s long-term care plan, and moving them into your home is a good way to save money while keeping them comfortable. But before you pack up their belongings and move them into your home, here are a few things to consider. Think About Placement Ideally, the best place to move your aging loved one is a bedroom…
Paying taxes is required for the workforce and for businesses. No one wants to pay more taxes than required, but purposefully avoiding these payments can open your business up to criminal tax liability. While there are legal loopholes to pay fewer taxes, often framed as tax avoidance, there are also serious offenses when you choose to evade paying your taxes.  There are different forms of tax manipulation, some of which are federal offenses and can land you in a criminal audit by IRS. IRS criminal audits can lead to hefty fines or worse–– prison time. With a 90% conviction rate
Parents spend a large portion of their lives looking out for their kids. Even as they enter adulthood, many parents are still a huge source of support for their children. However, there comes a day when the people that always looked out for their children’s best interest may need some help doing the same for themselves.  At some point, many adult children will face the reality of caring for their aging parents, whether it’s in their own home or moving them to an assisted living facility. But before a major life decision is made, it’s important to consider a few…
Trust accounting is a detailed record that includes information about all income and expenses related to a trust. It includes items like taxes paid, disbursements, gains and  losses, and expenses paid to advisors who helped manage the trust over time. Once the trustor has passed, the trustee will begin the termination process, which includes a final court accounting. A trustee is required by probate law to prepare a final accounting unless the beneficiaries decide to waive it in a signed document. If all the beneficiaries are in agreement, the trustee will not be required to provide the final formal…
Anytime you file taxes, there is a chance that your tax return might be audited by the Internal Revenue Service (IRS). The agency conducts standard procedures to find any errors or discrepancies among taxpayers. The audit process is meticulous and, should you find yourself under the scrutiny of IRS, will require detailed information from you.  In the article below, you’ll learn about the audit process and frequently asked questions surrounding IRS audits. Why was I selected for an Audit? There are different reasons you may be flagged for IRS audits. Some are due to random checks; however, you have a…