California Tax Rate It is the holiday season; and, while that means different things for different people, there is one thing that all U.S. residents share in common this time of year: It is time to start thinking about your California income tax returns. Learn more about California income tax brackets. California residents have to
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Criminal Tax Evasion vs. Civil Tax Fraud: What’s the Difference?
Criminal Tax Evasion vs. Civil Tax Fraud While the federal Internal Revenue Code establishes a number of specific tax-related offenses, in broad terms, failing to pay what you owe can be described as “tax evasion” or “tax fraud.” If your tax returns are being audited, or if you are under investigation by the Internal Revenue
How Long Do IRS Audits Take?
If you are being audited by the Internal Revenue Service (IRS), it makes sense to want to know how long the process will take. Unfortunately, the IRS itself does not provide much guidance. On its website, after asking, “How long does an audit take?” the IRS simply states: “The length varies depending on the type
Are gambling losses deductible?
Are gambling losses deductible? Any money won gambling is considered taxable by the IRS. Gambling winnings include cash prizes and the fair market value of any item won from lotteries, casinos, racetracks, game shows, etc. If you’ve won big, you may be subject to a rather large tax penalty on those winnings. However, gambling losses
When Does an IRS Tax Lien Expire?
If you fail to pay your federal income taxes (or what the Internal Revenue Service (IRS) says you owe), the government can use a variety of different tools to collect your tax debt. One of these tools is an IRS tax lien, which establishes a claim against your property. If you attempt to sell the
Paying Contractors in Cash – The Potential Tax Penalties
What are the risks of paying contractors in cash? If you make cash payments to independent contractors, the first thing you should know is that there is nothing inherently illegal about doing so. Cash is still a perfectly good form of payment.If you have cash on hand and want to use it to pay your
Tax Advantages & Disadvantages of C-Corps, S-Corps, and Other Business Entities
Tax Advantages Learn more about tax advantages and disadvantages of business entities. When forming a new business or subsidiary, your choice of business entity (and where you form your business entity) can have a number of legal and financial implications. While this includes things like owner liability, management and control rights, and transferability of shares,
What Triggers an EDD Audit?
What triggers an EDD Audit? If your business is being audited by California’s Employment Development Department, the first question you need to answer is, “Why?” Not only will figuring out what triggered the EDD audit help you defend against the audit itself, but it will also allow you to determine if your business is at
How Can My Company Obtain a California EDD Penalty Waiver?
If your company has been assessed a penalty after being audited by the California Employment Development Department (EDD), the news isn’t all bad, your company may be entitled to a penalty waiver. The California EDD has a formal Waiver of Penalty Policy, and various provisions of California’s Unemployment Insurance Code include stipulations regarding the removal
What is the California EDD Audit Statute of Limitations?
If you have been contacted by the California Employment Development Department (EDD), you are not alone. Here is some EDD audit advice. The California EDD aggressively enforces employers’ payroll tax obligations, and falling behind even for a single quarter can lead to an invasive audit with the potential for severe financial penalties. What is the