It may surprise many Californians to learn your risk of a California tax audit may be higher than an IRS audit. You may have heard in the news the rate of IRS audits is down. While this is true for lower income Americans, the cost of living in California naturally...
Amazon Faces a South Carolina Use Tax Battle With Huge Implications
Amazon faces a South Carolina use tax battle with huge implications for the multinational corporation and all firms and individuals who conduct business on the internet. The key question in the dispute is the collection of sales tax or "use tax" on sales made by third party merchants on Amazon's...
While US Administration Walks Back Independent Contractor Rules California and the EDD Increase Misclassification Audits
In recent months the current US administration has signaled a change in the position of the previous administration regarding the classification of independent contractors. This comes at a time when California and the EDD increase misclassification audits based upon a recent decision in the California Court of Appeal, Sixth District....
Avoid the DOL and IRS Audit Focus on Independent Contractors
How can you avoid the US Department of Labor or DOL and IRS audit focus on independent contractors and 1099 workers? What do you need to know about the new definitions of an independent contractor based upon the so-called "Darden Factors" and the "Economic Realities" standards? Why should you be concerned...
IRS Audit Campaigns
The LB&I IRS audit campaigns are a targeted combination of resources and expertise focused upon 13 separate areas. The IRS Large Business & International Group (LB&I) has established the following teams: IRC 48C Energy Credit Campaign - This campaign ensures that only those taxpayers whose advanced energy projects were approved...
More Trouble for the California Board of Equalization
There is more trouble for the California Board of Equalization or BOE on the immediate horizon. The California state agency is responsible for the collection of one-third of all California taxes including sales and use taxes, while carrying responsibility for many property tax issues as well as over 30 other...
Don’t Provide the IRS any more Information than Absolutely Necessary
If we could give one piece of advice to all US taxpayers it would be this: don't provide the IRS any more information than absolutely necessary to complete your tax return and any associated forms or worksheets. If they don't ask for it, don't provide it. If the IRS asks...
IRS Audit Rules for Partnerships Changing
The IRS audit rules for partnerships continues to evolve and change. In the fall of 2015 Congress passed the "Bipartisan Budget Act" that contained changes to the audit process for partnerships that goes into effect January 1, 2017. The old IRS audit rules for partnerships was based primarily upon the...
California FTB Audits on the Rise
The California Franchise Tax Board or FTB is increasing the number of tax audits it conducts due to increased information available through new systems, as well as information sharing with the IRS, Employment Development Department or EDD and other federal and state agencies. Annually, the FTB is up to more...