The IRS doesn’t randomly launch criminal tax investigations. These cases typically start with a referral—either from an informant, a financial institution, or even another government agency. When the IRS Criminal Investigation Division (CID) takes on a case, it means they suspect willful tax fraud or financial crimes that could result in criminal charges.
At
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The Inside Scoop: IRS Criminal Investigations FAQs
When it comes to IRS tax crime investigations, understanding how the government approaches these cases is critical. At Milikowsky Tax Law, we regularly handle cases involving IRS criminal investigations and know the key questions business owners and taxpayers have. Here are three of the most common questions and what you need to know.
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What to Do If the IRS Denies Your ERC Claim
The Employee Retention Credit (ERC) was a key relief program for businesses impacted by COVID-19, offering financial support to help keep employees on payroll. However, many business owners who filed ERC claims are now receiving IRS denial letters—either a 105C letter (full disallowance) or a 106C letter (partial disallowance).
John Milikowsky, Founder of Milikowsky Tax
The Inside Scoop: How the IRS Identifies a Criminal Tax Matter
When does the IRS consider a tax issue to be criminal? The answer lies in willfulness—the intentional and voluntary violation of a known legal duty. If the IRS suspects criminal tax fraud, they will conduct a thorough investigation, examining financial records, tax returns, and witness testimony to determine if a taxpayer has engaged in
What to Do If You Receive an ERC Denial Letter from the IRS
Receiving a denial letter for the Employee Retention Credit (ERC) from the IRS can be stressful, but taking immediate and strategic action can help minimize potential financial consequences.
Here are the steps you should follow to address the situation effectively.
1. File an Appeal Within 30 Days
The first and most urgent step is to
What You Need to Know About Beneficial Ownership Reporting Requirements
In 2021, a new anti-money laundering law introduced the Beneficial Ownership Information (BOI) Requirement, mandating certain companies to disclose information about their ownership and control to the Financial Crimes Enforcement Network (FinCEN).
John Milikowsky, Founder of Milikowsky Tax Law, weighs in on what businesses need to know to stay compliant and avoid hefty penalties:
The
EDD Audit: A Testimonial with Business Owner Mykel R. “Commitment & Dedication”
When Mykel R., founder of Create the Lab, found himself facing an EDD audit, he quickly realized that the process was more complex than he initially thought. The stakes were high, and it was clear that expert help was needed. With the support of Milikowsky Tax Law, Mykel’s experience became far more manageable and less
How to Navigate an EDD Audit: A Client’s Journey with Milikowsky Tax Law
Create the Lab, an event and film production studio in Hawthorne, California, was audited by the California Employment Development Department (EDD), founder Mykel feared a significant financial blow. But with the expert guidance of Milikowsky Tax Law, the experience turned into an opportunity to improve his business operations.
Watch the video below to hear Mykel’s
1099 Misclassification Audit Testimonial: How Milikowsky Tax Law set Realistic Expectations
Facing an audit from the California Employment Development Department (EDD) can be daunting for any business owner, especially when it involves potential 1099 worker misclassifications. The process is complex, the stakes are high, and the regulations are difficult to navigate without expert guidance.
That’s why it’s critical to take swift action when the EDD comes
Don’t File Your 1099s Before Reading This
The 2024 1099 filing deadline is January 31, 2025. Preparing and submitting these forms accurately is not just about compliance—it’s about safeguarding your business from significant penalties and potential audits.
Understanding who needs to file, what transactions are reportable, and the common pitfalls can help you stay on track.
Why Filing 1099s is Important
Filing