If you are in business in San Diego or conduct business in-state you will eventually face California business tax audits. Allen Barron is uniquely positioned to represent businesses and business owners before all California tax boards including:
- Employment Development Department or EDD
- Franchise Tax Board or FTB
- Board of Equalization or BOE
If you have been contacted regarding California business tax audits it is serious and you should contact Allen Barron immediately for a free consultation at 866-631-3470. The issue isn’t simply the California business tax audits but the IRS audit that is soon to follow. California tax agencies communicate directly with one another and with the IRS. When an audit is completed with one agency, another will soon knock at your door.
The results of your California business tax audits will follow you to each subsequent agency. This is why it is so important to work with Allen Barron’s experienced tax attorneys. We handle all communications with tax auditors and associated hearings on your behalf. This ensures that the audit remains tightly focused, limiting your exposure.
For example, the California EDD is actively seeking California employers with 1099 employees. This is the first question they will ask during any EDD audit: “Do you have any 1099 workers?” If you have 1099 workers you can expect the agency to attempt to reclassify those workers as “employees.” This has severe financial consequences for any California business. It exposes you to substantial civil penalties up to $25,000 per incidence as well as back payroll taxes, wages and even benefits.
Allen Barron works to limit your exposure during California business tax audits and takes proactive steps to prevent the impact of one audit from expanding into another. If you have been contacted by the EDD, FTB or BOE regarding an audit we invite you to contact the experienced domestic and international tax attorneys at Allen Barron for a free consultation at 866-631-3470. Ask about the protections of the attorney-client privilege and how we can help to reduce your exposure and future tax liabilities.