California employers operate in one of the most closely monitored payroll tax environments in the country. The California Employment Development Department (EDD) oversees payroll tax compliance for unemployment insurance, employment training tax, state disability insurance, and California personal income tax
Milikowsky Tax Law
Milikowsky Tax Law is a California-based tax law firm specializing in representing small businesses and business owners facing government tax audits and disputes. The firm focuses on defense and resolution in audits conducted by the IRS, California Employment Development Department (EDD), California Department of Tax and Fee Administration (CDTFA), California Franchise Tax Board (FTB), and Customs and Border Protection (CBP). Their practice areas include IRS audit defense, EDD worker misclassification audits, sales and use tax audits, excise tax audits, and appeals related to SBA PPP loan forgiveness denials. Milikowsky Tax Law publishes detailed blog posts and resources that explain audit triggers, compliance requirements, and strategies for managing tax-related government investigations and enforcement actions.
Latest from Milikowsky Tax Law - Page 3
What Happens When the Franchise Tax Board Disagrees With Your Federal Return
For many California business owners, federal taxes receive the most attention. Returns are prepared, filed with the Internal Revenue Service, and the assumption is that the same numbers flow directly to the state. In reality, California’s Franchise Tax Board operates…
Construction Business Owners Guide to EDD Audit Defense
Construction businesses operate in one of California’s most heavily scrutinized regulatory environments. EDD audits are common in this industry because subcontractors, short-term projects, and fluctuating labor needs create classification risk at scale. When EDD audits a construction company, it is…
Who Should Defend a Business in an IRS Audit?
When the IRS contacts a business, the question is not whether the notice is serious. It is who should stand between the business and the government.
Many business owners assume an IRS audit is an accounting problem. It is not.…
EDD Site Sweeps in California Construction, What Happens Next and How to Prepare in 2026
Consequences of EDD Site Sweeps
If you run a construction company in California, it is important to plan for enforcement activity before it shows up on a job site. Many contractors do not realize they are at risk until investigators…
California EDD Audit Guide for Construction Businesses
Job Site Sweeps, Independent Contractor Classification Under AB 5, How Far Back EDD Can Look, and How to Prepare
California construction companies continue to face a high level of scrutiny around worker classification and payroll compliance. Many audits do not…
Inside the EDD Audit Playbook EVENT March 19 2026
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My Business Received an EDD Audit Letter, What Do I Have To Do To Respond?
When a business receives an Employment Development Department (EDD) audit letter, the clock starts immediately. The state is signaling that it believes there may be errors in payroll reporting, worker classification, or tax filings, and failing to respond correctly can…
IRS Audits in 2026: New Rules, New Technology, and New Triggers Every Business Should Prepare For
IRS audits are changing in 2026. New reporting rules, expanded enforcement funding, and AI-driven audit selection are reshaping how taxpayers are identified, contacted, and reviewed. If you are a business owner or financial professional, staying ahead of these shifts can…
California Sales Tax vs California Use Tax – A Business Owner’s Guide to CDTFA Audits
California’s tax system can be confusing, especially for business owners navigating sales tax, use tax, and excise tax obligations. The California Department of Tax and Fee Administration (CDTFA) enforces these rules, and when discrepancies arise, they audit.
For many businesses,…