Are you prepared for a California EDD employer audit? Did you know the California Employment Development Department (EDD) regularly audits most California employers to monitor compliance with worker classification, wage reporting, and California payroll tax? If you are a California employer, you should always be prepared for and expect a...
California’s Unitary Method of Taxation Around the World
What is California's unitary method of taxation around the world, and how does it affect individuals with offshore investments, U.S. expatriates, and multistate and multinational corporations? Central Points about California's Unitary Method of Taxation: The State of California taxes its citizens on worldwide income, not just income earned here in...
The Risk of California FTB Audits is Increasing
Did you know that the risk of California FTB audits is increasing when compared to the trend of IRS audits in 2025? The California Franchise Tax Board, or FTB, has recently invested in advanced data processing systems and AI applications. This, combined with streamlined information sharing with the IRS, Employment...
The Step Doctrine and How it Applies to IRS, State, and California Tax
It is important to understand the step doctrine and how it applies to IRS audits and state tax investigations, including California tax audits. The "step doctrine" is a concept not directly found in federal or California law, but that has been borne out of Court decisions since the great depression,...
ABCast Episode 10 – California Tax Reporting and Controversy
In our new ABCast Podcast Episode 10 - California Tax Reporting and Controversy Janathan Allen discusses 3 of the primary California tax agencies: Franchise Tax Board (FTB), the Employment Development Department (EDD) and the California Department of Tax and Fee Administration (CDTFA). In this overview of California taxation, Episode 10 -...
Proven Representation in a California Sales and Use Tax Audit
Are you searching for proven representation in a California sales and use tax audit? Have you received notification of a California sales and use tax audit by the Board of Equalization? The California BOE is responsible for the collection of all sales and use taxes in California. If you sell...
Beware of California EDD Attempts to Reclassify 1099 Workers
You need to beware of California EDD attempts to reclassify 1099 workers as “employees” in San Diego. The EDD recently announced a new strategy to pursue audits to re-classify independent contractors as employees, thereby creating a payroll tax obligation for California businesses. Your exposure also extends to bast benefits and...
The IRS FTB and EDD are Targeting 1099 Worker Misclassification
If you are a San Diego employer with any 1099 workers take heed. The federal government including the US Department of Labor (DOL) and the IRS, as well as California's Employment Development Department (EDD) and Franchise Tax Board (FTB) are targeting 1099 worker misclassification for audit. There are many roads...
Change Your Business Model to Avoid Independent Contractor Misclassification
Should you consider A new business model to avoid independent contractor misclassification and associated penalties and financial consequences? The rising number of California Employment Development Department or EDD misclassification audits is skyrocketing. The first thing many EDD auditors are asking is simple: "Do you have any 1099 workers?" If the answer...