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
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 4
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…
Why Your Business Might Be Targeted for a Sales Tax Audit
Most business owners are caught off guard when they receive a letter from the California Department of Tax and Fee Administration (CDTFA) notifying them of a sales tax audit. The first question is always the same: Why me?
The reality…
How to Respond to IRS Letter 6323 | Tax Audit Notice Explained
If you’ve received IRS Letter 6323, you’re officially the subject of an IRS tax audit. This notice is not a scam, not a phone call, and not an email, it comes only through certified mail.
For business owners and individuals…
When the IRS Goes Back 20 Years: Why Business Owners Need an Experienced IRS Audit Attorney
The Reality of Extended IRS Audits
Many business owners believe the IRS can only look back three years. Some prepare more carefully and keep records for seven years. Both assumptions can leave you exposed. When tax attributes like net operating…
Beware of the M&A Trigger for Sales Tax Audits
If you are selling your business in California and you have a sales tax account with the CDTFA, there’s a critical step you need to know about: requesting a tax clearance certificate.
While this step is often seen as routine…
California’s $8.55 Million Boost to Local Wage-and-Hour Enforcement
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California’s $8.55 Million Boost to Local Wage-and-Hour Enforcement
California has injected $8.55 million into 16 local prosecutor offices through its Labor Code Enforcement Grant Program, marking
…
Could Tax Evasion Be Prosecuted as Money Laundering?
The Emerging Legal Threat
Most business owners understand that tax evasion is illegal. But few realize that it could soon carry even steeper consequences, including charges for money laundering.
This isn’t speculation. A growing number of international frameworks and academic…
What the TCJA Changes Mean for CPAs
…And Why It May Trigger Increased Audit Exposure
As we approach the end of 2025, CPAs across the country are preparing for another round of tax complexity, this time surrounding the scheduled expiration of key provisions in the Tax Cuts…
A Guide for CPAs Navigating Complex Government Tax Audits
Protecting Your Client Relationships. Reducing Exposure. Expanding Value.
As a CPA, you’re often the first line of defense when a client receives an IRS, EDD, CDTFA, or CBP audit notice. While your team is focused on clean financials and accurate…