Unfiled tax returns are drawing increased attention from the Internal Revenue Service. For many individuals and business owners, the assumption is that if nothing is filed, nothing happens. That is not how the system works. The fact is that failing to file a tax return may trigger an unwanted IRS visit to your home or business.
When tax returns remain
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Received an Audit Notice? How to Respond Without Making It Worse
Receiving an audit notice creates an immediate reaction. Most business owners feel the need to act quickly, gather documents, and respond as soon as possible in an effort to stay ahead of the situation.
That instinct is rooted in how businesses operate. Speed, responsiveness, and decisiveness are often what keep projects moving and problems contained.
For Jason Ramsay, a tile…
California Use Tax vs. Sales Tax – Mastering CA Sales Tax Audits
Key Differences, Examples, and Audit Considerations for Business Owners
If you run a business in California, understanding the difference between sales tax and use tax is essential to accurate reporting and long-term compliance. These two taxes are closely connected, and how they are handled shows up clearly in your filings and during a review by the California Department of Tax…
Gratuity vs Tip: What Restaurants Need to Know About Sales Tax Audits
Operating a restaurant in California means working inside tight margins while navigating a tax environment that is anything but simple. Labor is variable, often shifting between full-time staff, part-time employees, and supplemental help. Pricing decisions are constant. Since the pandemic, many operators have rebuilt their businesses while adjusting to changing customer behavior, rising costs, and new operational models.
Against that…
What Triggers a California CDTFA Sales Tax Audit?
If you receive a notice from the California Department of Tax and Fee Administration, the first question that comes to mind is usually the right one: Why me?
Sales tax audits in California are not random. They are typically triggered by identifiable events, patterns, or third-party activity that signals potential underreporting or exposure.
Understanding those triggers, and how they show…
What to Expect During an EDD Audit: A Step-by-Step Guide for California Businesses
California EDD Audit Guide What Triggers an EDD Audit, What to Expect, and How to Prepare
An audit from the Employment Development Department doesn’t usually arrive with much fanfare. For many businesses, it begins with a form that looks routine, something easy to set aside until there’s more time to deal with it.
“If you receive an EDD periodic questionnaire …
Do You Need an Attorney to Represent You in an EDD Audit?
For California businesses, few government interactions feel as disruptive as an audit from the Employment Development Department (EDD). Payroll records are requested. Worker classifications are examined. Questions arise about contractors, wages, and tax filings that may go back several years.
Many business owners initially assume an EDD audit is simply an accounting review. In reality, it is a…
EDD Audits Are Expanding to Eight Years
For many California business owners, an EDD audit feels contained. There is an assumption that if something goes wrong, the review will be limited to a few recent years and can be dealt with accordingly. That assumption does not always hold.
The Employment Development Department has the authority to expand a typical three-year audit window out to eight years under…
CPAs: How to Help Your Clients Avoid (and Navigate) EDD Audits
California employers operate in one of the most closely monitored payroll tax environments in the country. The California Employment Development Department (EDD) oversees payroll tax compliance for unemployment insurance, employment training tax, state disability insurance, and California personal income tax withholding. For many businesses, an EDD audit begins through routine compliance reviews, industry enforcement initiatives, or information sharing between agencies.…
What Happens When the Franchise Tax Board Disagrees With Your Federal Return
For many California business owners, federal taxes receive the most attention. Returns are prepared, filed with the Internal Revenue Service, and the assumption is that the same numbers flow directly to the state. In reality, California’s Franchise Tax Board operates under its own authority and may review federal filings independently.
When the Franchise Tax Board reviews a federal return and…