As we approach 2025, the landscape of tax audits is evolving rapidly. With changes in technology, tax laws, and enforcement practices, staying informed about what to expect from tax audits in the coming years is crucial. Whether you’re an individual taxpayer, a business owner, or a financial professional, understanding these shifts can help you navigate
Milikowsky Tax Law Blogs
Blog Authors
Latest from Milikowsky Tax Law
IRS ERC Audits & Voluntary Compliance Program
What Is the Voluntary Compliance Program (VCI)?
The IRS has introduced the Voluntary Compliance Program (VCI) for businesses that filed for the Employee Retention Credit (ERC) and believe their claim was inaccurate. This program allows companies to correct mistakes, whether due to their own errors or because they relied on a professional who provided incorrect…
ERC Credit Explained: 3 Requirements IRS Will Look For
The Employee Retention Credit (ERC) was designed to support businesses affected by government and business closures during COVID-19. To qualify, businesses must meet three main requirements: being a qualified business, having qualified wages, and experiencing a partial or full suspension of operations that impacted revenue.
What Is a Qualified Business?
To qualify for the ERC,…
For CPAs: Once Tax Season is Over, Audit Season Begins (We’ve Got You)
As a Certified Public Accountant (CPA), you know that the end of tax season doesn’t mean a break from the action. Just as the dust settles from tax filings, audit season kicks off. At this important time, having a robust strategy and support system in place can make all the difference.
Here’s how you can…
IRS ERC Crackdown: 9 Red Flags Business Owners Must Review
The IRS is intensifying audits of Employer Retention Credit (ERC) claims. With over a million ERC applications received, totaling $86 billion in credits, the IRS is carefully scrutinizing each claim. Here are nine red flags that could trigger an audit of your ERC claim and what to watch out for.
John Milikowsky, Founder of Milikowsky…
4 Consequences of Unpaid Business Taxes
Millions of dollars in penalties are doled out by the Internal Revenue Service (IRS) each year. With the majority of which are attributed to businesses that failed to file taxes or pay payroll taxes. It’s important to understand compliance to ensure your company steers clear of costly violations.
There are unforeseen circumstances that could trigger…
5 Tips for CPAs to Minimize Audit Risk for Their Clients
If you are a CPA, here are 5 things to help your client reduce the risk of an EDD, IRS, or SBA audit:
If you are a CPA, here are 5 things to help your client reduce the risk of an EDD, IRS, or SBA audit:
1: Confirm that your client’s 1099-K (provided by a…
How to Prepare for an EDD Misclassification Audit
As a business owner the best way to prepare for, or avoid entirely, an audit from the Employment Development Department (EDD), is to make sure that you’re correctly classifying your employees. Whether your employees W-2 or 1099 employees or a combination of both, it’s important to ensure that they are correctly classified as such. The…
Don’t Be Duped Into Filing Unfounded ERC Claims (You Could Open Yourself Up to Criminal IRS Investigation)
As part of its annual Dirty Dozen campaign, the Internal Revenue Service (IRS) is warning businesses and individuals to steer clear of aggressive promoters offering questionable claims for the Employee Retention Credit (ERC).
These dubious claims not only put businesses at risk of penalties and interest but also potentially criminal prosecution. Let’s take a look…
CPA vs Tax Attorney: What’s the Difference?
In some cases, it may be difficult to distinguish what your CPA is capable of helping you with and which tasks are better suited for a tax attorney. Both are experts when it comes to tax matters but in different ways.
While your CPA is an expert at preparing and submitting your taxes correctly, you’ll…