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When the IRS contacts a business, the question is not whether the notice is serious. It is who should stand between the business and the government.
Many business owners assume an IRS audit is an accounting problem. It is not. An IRS audit is a legal process governed by complex tax statutes, procedural rules, evidentiary standards, and enforcement priorities. Choosing…

I’m currently through week one of the F45 Challenge! What is the F45 Challenge?

Funny you ask!

F45 is a global fitness training brand best known for its high-intensity, functional group workouts. The name F45 stands for Functional 45—meaning each class is designed around functional movements (the kinds of motions you use in real life) and lasts 45 minutes (sometimes…

Job Site Sweeps, Independent Contractor Classification Under AB 5, How Far Back EDD Can Look, and How to Prepare
California construction companies continue to face a high level of scrutiny around worker classification and payroll compliance. Many audits do not begin with a letter. They begin on a job site, when investigators ask workers questions, document what they observe, and…

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Inside the EDD Audit Playbook
With Special Guest: Karla Stell, EDD Auditor

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The post Inside the EDD Audit Playbook EVENT March 19 2026 appeared first on Milikowsky Tax Law.

When a business receives an Employment Development Department (EDD) audit letter, the clock starts immediately. The state is signaling that it believes there may be errors in payroll reporting, worker classification, or tax filings, and failing to respond correctly can turn a manageable review into a costly assessment.
Understanding why the audit was triggered, what the EDD is looking for,…

IRS audits are changing in 2026. New reporting rules, expanded enforcement funding, and AI-driven audit selection are reshaping how taxpayers are identified, contacted, and reviewed. If you are a business owner or financial professional, staying ahead of these shifts can help you avoid penalties, prepare documentation that aligns with IRS expectations, and respond quickly if your return is flagged.
Below…

California’s tax system can be confusing, especially for business owners navigating sales tax, use tax, and excise tax obligations. The California Department of Tax and Fee Administration (CDTFA) enforces these rules, and when discrepancies arise, they audit.
For many businesses, a CDTFA audit starts with something as simple as an exemption error, a missing resale certificate, or a purchase from…

California restaurants operate under some of the most complex tax and reporting rules in the country. Between sales tax, use tax, cash handling, tip reporting, and new gratuity regulations on the horizon, even well-run businesses can find themselves facing a CDTFA sales tax audit.
In this video, John highlights three of the most common triggers of a California sales tax…

California businesses are seeing a sharp rise in Employment Development Department (EDD) audits, and one of the most significant changes is the expansion of audit lookback periods. While a standard audit typically covers three years, EDD now has the authority to reach back eight years when independent contractor issues are involved. For companies that work with 1099 workers, this shift…