Taxation

California Assembly Bill 5 (AB-5) took effect on January 1, 2020, and is the new standard by which employers must classify employees. Small business owners (SBOs) should familiarize themselves with AB-5 and the ABC test to avoid employee misclassification and potential penalties from the Internal Revenue Service (IRS).
What is Assembly Bill 5 (AB-5)?
Assembly Bill 5, commonly

When it comes to court accounting, there are two types: informal and formal. People typically experience informal court accounting, which is an accounting performed by an executor appointed by the deceased. However, there are occasions where formal court accounting is required. 
Formal court accounting is an accounting performed by a court-appointed administrator or trustee.

Related Article: California Court Accounting:

When a loved one passes away, they may leave behind valuable assets that they intended to distribute to beneficiaries. With a will, the creator is able to instruct an appointed executor about the distribution of those assets. However, before anything is given away, the will or estate assets must still go through probate.
Here are a few pieces of information

Now that the April filing deadline has passed, small business owners may be asking: what’s next?
As tempting as it may be to put off thinking of taxes until next year, some small business owners may be required to respond to an EDD audit.
Read on how to learn how what triggers an EDD audit and how to respond.
What is

The Small Business Administration (SBA) has forgiven over 98% of the total Paycheck Protection Program (PPP) loan value that borrowers requested them to forgive; recently, however, SBA has begun to issue more forgiveness PPP loan forgiveness denials.
Many of these recent denials issued by the SBA are not consistent with their own guidelines. Borrowers have received denial letters based on:

New classification guidelines between W-2 employees and 1099 independent contractors place stricter rules for businesses looking to hire. Common misconceptions about independent contractors can lead to businesses misclassifying workers and paying high penalties and fines. Avoid these consequences by understanding the regulations your business must follow when hiring independent contractors.
Let’s discuss the common misconceptions small businesses have about independent contractors. 

In the final part of our three-part series “how to respond to an IRS audit in 2022,” we’re focusing on the actual response to Internal Revenue Service (IRS).
Watch the video below to learn more from Milikowsky Tax Law’s Founder and Managing Attorney, John Milikowsky, as he explains how to craft the right response.
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