The California Employment Development Department (EDD) conducts payroll tax audits to verify businesses are in compliance with the state’s employment tax laws. These audits are designed to ensure employers are correctly reporting and remitting taxes related to wages, unemployment insurance, disability insurance, and other employment-related obligations. For businesses operating in California, understanding the EDD audit
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The Exception to the Exception to the Exception — California Court Rules Certain Medical Devices May be Subject to CDTFA Sales Tax
Certain Medical Devices May be Subject to CDTFA Sales Tax A recent California Appeals Court ruled certain medical devices may be subject to CDTFA Sales Taxes. In Medtronic v. CDTFA, a California Appeals court ruled a medical device maker was responsible for paying sales tax on the heart rate monitors it sold in California. This
Living on the Edge – Life Without Creating a Will
Life Without Creating a Will Everyone dies eventually. You will die eventually. What is important is what you do with your time while you are alive. When I was touring law schools a professor told me he was married, had kids, and loved to drive his motorcycle up the coast of California. This seems like
IRS Releases Dirty Dozen List of Tax Scams
The IRS recently released its annual Dirty Dozen list of tax scams. The Tax scams on the list include phishing scams, ghost preparers, and bogus tax deductions. One of the scams on the list is misleading social media advice. Social media is a source of information and disinformation. It is not hard to come by
Personal Responsibility for CDTFA Sales Tax Liabilities — Even Pretend Bosses Can Be Subject to a Dual Determination
Heavy is the head that wears the crown – even if the crown is not real. Individuals can face personal responsibility or a dual determination for the CDTFA sales tax liabilities of a corporation or LLC. Usually, the individual the CDTFA finds personally liable is the owner and/or officer of the corporation or LLC. The
IRS Offers Advice: How to Choose the right Tax Preparer or Accountant
The IRS recently issued a news release advising taxpayers on how to choose the right tax preparer or accountant to prepare tax returns. While many people with simple tax returns such as wage earners may not need the services of a tax preparer or accountant, many people with potentially complex tax returns such as business
IRS Provides New Guidance on Section 530 Relief for Employment Tax Audits
Section 530 Relief The IRS recently provided new guidance on how it will apply Section 530 Relief to Employment Tax Audits. The IRS issued Rev. Proc. 2025-10 which announced the IRS’ updated positions on Section 530 relief available to taxpayers in Employment tax audits who were found to have misclassified workers as independent contractors. The
IRS Announces Business Mileage Rate for 2025
IRS Business Mileage Rate for 2025 The IRS recently announced the business mileage rate for 2025. Business owners can typically claim a deduction of 70 cents per mile driven for tax purposes in 2025. While the business mileage deduction is an especially useful deduction for business owners, many business owners are not taking all the
Six Year-End Tax Tips to Help Lower Your 2024 Tax Liability
Tax Tips As 2024 nears its end, there is still time to lower your income taxes. Strategic moves like stock trades, charitable donations, and retirement contributions can significantly impact how much you owe. With certain provisions of the Tax Cuts and Jobs Act set to expire after 2025—potentially leading to higher taxes for some—now is
End of Year Tax Planning Essentials
Tax Planning Essentials As year another year closes, many of us have several things we need to take care of before the year ends. You may find yourself purchasing gifts, preparing for the holidays, and doing other tasks. I hate to be a grinch, but you may need to add some end of year tax