Every three years the California Employment Development Department (EDD) audits our corporations. You need an experienced California EDD business audit attorney to protect you during an EDD audit especially if you have 1099 workers. The EDD is actively seeking employers with 1099 workers in order to establish a determination of misclassification of employees as independent contractors resulting in draconian fines, penalties, back wages and benefits. These events can place your business at risk and you need an experienced EDD business audit attorney to protect your interests and guard your financial well-being. Even if you don’t have 1099 workers, you do not want to enter an EDD audit without the skilled and experienced representation of Allen Barron’s integrated legal, tax and accounting teams.
California tax agencies are looking for revenues. They are aggressively auditing every business searching for ways to develop additional revenue. Many unsuspecting business owners simply give in, thinking they’ll just pay the bill and move on. The next knock on the door is the California FTB or the IRS. It is important to understand the tax agencies communicate with one another. If you are audited by the EDD, the agency will send the results of your audit to the California FTB and the IRS directly. If you have not updated your returns and effectively prepared the results from these audits can be even worse.
Allen Barron’s experienced tax attorneys protect your interests beyond the EDD audit. We understand the findings in the present audit will have an even larger affect on your business down the road. We work to limit the impact of the EDD audit. We anticipate the impact any EDD findings will have upon your FTB or IRS tax returns and whether they need to be proactively modified. You have peace of mind knowing your are receiving valuable integrated representation across multiple disciplines while leveraging economies of scale to reduce the financial impact to your business. We invite you to contact us for a free consultation at 866-631-3470.