Author
John Milikowsky, Esq. | Founder | John Milikowsky represents U.S. and foreign businesses and individuals in sophisticated business transactions involving U.S. tax matters. Relentlessly defending each client in federal and state audits and criminal investigations to protect their civil rights and provide financial security.
A business owner gets an audit notice from the EDD, CDTFA, or IRS, opens
Author
John Milikowsky, Esq. | Founder | John Milikowsky represents U.S. and foreign businesses and individuals in sophisticated business transactions involving U.S. tax matters. Relentlessly defending each client in federal and state audits and criminal investigations to protect their civil rights and provide financial security.
A CDTFA audit doesn’t announce itself dramatically. It arrives as a letter, a notice that
Author
John Milikowsky, Esq. | Founder | John Milikowsky represents U.S. and foreign businesses and individuals in sophisticated business transactions involving U.S. tax matters. Relentlessly defending each client in federal and state audits and criminal investigations to protect their civil rights and provide financial security.
A business owner spends eighteen months getting a company ready to sell. Revenue is up.
Author
John Milikowsky, Esq. | Founder | John Milikowsky represents U.S. and foreign businesses and individuals in sophisticated business transactions involving U.S. tax matters. Relentlessly defending each client in federal and state audits and criminal investigations to protect their civil rights and provide financial security.
A business owner pays a worker $80,000 over the course of a year as a
Jason Ramsay has been running California Flooring Service for more than three decades. He knows how to manage projects, coordinate crews, and solve problems that come up in the field. When an audit notice arrived, his first instinct was the same one most business owners have: assess it, figure out what’s needed, and handle it.
That instinct works well on
For many business owners, an audit notice arrives without warning. One day operations are moving as expected, and the next, a letter introduces a formal review process that demands immediate attention.
For Jason Ramsay, a tile and flooring contractor and general contractor with California Flooring Service, that moment came after more than three decades in the industry.
“When you get
The construction industry has been on EDD’s radar for a long time. If you run a construction business in California and you use independent contractors, framers, electricians, laborers, specialty subs, you need to understand exactly why your industry draws this level of scrutiny, and what the consequences look like when EDD decides to take a closer look.
How Long Has
Receiving a CDTFA sales tax audit notice introduces a process that requires organization, clarity, and a strong understanding of your financial records.
The audit is built around one core objective: verifying that your reported sales and taxable sales align across your financial systems. That verification process relies heavily on how your records are presented and how clearly your business operations
For many business owners, hiring independent contractors feels like a practical way to manage costs and maintain flexibility. In California, that decision carries real legal exposure if it is not handled correctly.
Worker classification is no longer just a compliance issue. In certain situations, it can escalate into a criminal investigation, followed by a civil audit and significant financial consequences.
Worker classification is one of the most important operational decisions a business makes. In California, that decision carries ongoing implications for payroll, compliance, and how your business is evaluated by state agencies.
The distinction between W-2 employees and independent contractors is not simply administrative. It directly affects how taxes are handled, how roles are structured, and how risk develops over