It is surprising how many business owners under value accounting and the profound financial impact it can have on business operations, taxation and profit. Effective accounting strategies reduce tax exposure and provide the critical data necessary to prevent or defend against an IRS or California tax audit. Well-conceived accounting strategies...
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...
How Can We Help With an IRS Audit in San Diego
How can we help with an IRS audit in San Diego? Most people have heard about a tax audit, and everyone who knows about them is aware that they are quite a challenge. The Internal Revenue Service uses the audit to leverage some financial gain out of you, and worse...
Organizing Documents Could Make an Audit Easier
Organizing documents could make an audit easier. Throughout the nation the digital age has caused many people to reduce the amount of paper used. While this is certainly good for the environment, it may leave some individuals unsure of how to organize important papers. Regardless of how it is done,...
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...
California EDD is Actively Targeting Independent Contractor Misclassification
The California EDD is actively targeting independent contractor misclassification and seeking substantial tax revenue from San Diego and California employers. While the federal agencies may have seemed to relax based upon administration policies, the California agencies are making this a primary focus. If you have 1099 workers or independent contractors...
What information the IRS Requests for an Audit and Why
You need to be wary of what information the IRS requests for an audit and why. If you have received an IRS "Letter of Notification" informing you of an upcoming audit your first action to be to contact us at 866-631-3470. Dealing with the IRS is serious business, and the...
Do I Have to Provide Information Requested by an IRS Auditor?
Do I have to provide information requested by an IRS auditor? No, you do not necessarily have to provide every piece of information requested by an IRS auditor, and you certainly do not have to provide additional unrequested information in an attempt to establish your trustworthiness. There are specific laws,...
Has the IRS Stopped Collecting Taxes From High Income Earners?
Has the IRS stopped collecting taxes from high income earners? Is past performance an indicator of future risk associated with an IRS audit? A recent Newsweek article flatly stated “The government just admitted it doesn’t really try to collect rich people’s taxes.” A recent study by Syracuse University researchers showed...