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
Milikowsky Tax Law Blog
The Milikowsky Tax Law Blog, published by Milikowsky Tax Law, focuses on tax law issues affecting small businesses and business owners, particularly in California. It covers topics such as IRS audits, California Employment Development Department (EDD) audits, California Department of Tax and Fee Administration (CDTFA) sales and use tax audits, California Franchise Tax Board (FTB) audits, and Customs and Border Protection (CBP) tariff disputes. The blog provides guidance on audit triggers, defense strategies, and compliance requirements, including worker classification under AB-5, PPP loan forgiveness appeals, and tax reporting for industries like restaurants and manufacturing. It aims to help businesses navigate complex tax regulations and government enforcement actions.
Latest from Milikowsky Tax Law Blog - Page 3
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,…
Restaurants: The Top Three Triggers of Sales Tax Audits
California restaurants operate under some of the most complex tax and reporting rules in the country. Between sales tax, use tax, cash handling, tip reporting, and new gratuity regulations on the horizon, even well-run businesses can find themselves facing a…
EDD Audits Are Expanding. Here’s What California Businesses Need to Know
California businesses are seeing a sharp rise in Employment Development Department (EDD) audits, and one of the most significant changes is the expansion of audit lookback periods. While a standard audit typically covers three years, EDD now has the authority…