2019-04-09 21:26
BREAKING NEWS – Today, the California State Assembly passed the Marketplace Facilitator Act, also known as AB 147. The bill makes Amazon and other marketplaces responsible for regi… Read More
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Helping taxpayers resolve their tax problems.
2018-04-24 19:38
In California we have what’s called a lead system where the EDD, the state employment tax agency will get a lead from something, then they will send their auditors out to follow up on… Read More
2018-04-24 19:35
The auditor is going to look at any payments to officers or any personal expenses that are being written out of the business, and in an effort to classify personal expenses as taxable wages… Read More
2018-04-24 19:34
One of the biggest problems that we come across in payroll audits is employee reimbursements. A lot of the times what will happen is an employee will get paid a normal paycheck and then the… Read More
2018-04-24 19:33
Number one, is you want to take all the 1099 workers in the business, you want to put them into buckets and determine which buckets are they going to use. Secondly, you want to offer up test… Read More
2018-04-24 19:31
You may be familiar with a 12-factor test or a three-factor test or a lot of different tests that the EDD supposedly uses to classify independent contractors. Through years of professional… Read More
2018-04-24 19:30
The next step that the EDD takes in a California payroll tax audit is that they go through and they verify 1099 workers. They’re going to go through each 1099 worker in detail. Even w… Read More
2018-04-24 19:26
After verifying payroll, they’re going to look at personal income tax withholdings and make sure that the amounts listed match what the state has on file as well. Just to go back and… Read More
2018-04-24 19:23
After the initial interview, the EDD will conduct what they call a payroll test. A payroll test is a verification of the business’s payroll posting system. They make sure that payroll… Read More
2018-04-24 19:22
The very first thing that the auditor does is they put you through an initial compliance interview.
An initial compliance interview serves a couple of different purposes. Number one, it&rsq&helli…Read More
2018-04-24 19:19
I want to talk now about the penalties that are associated with sales tax audits. Within California, and with most other states, there are two types of penalties. There are mandatory penalt… Read More
2018-04-24 15:27
I want to talk a little bit about the types of records that are requested in a sales tax audit and ways that you can use them to your advantage. The auditor at the beginning of an audit can… Read More
2018-04-24 15:24
The auditor uses methods to determine a client’s liability and what they use is they use different testing methods. They’re going to take a data that you provide them and they go… Read More
2018-04-23 23:51
The Department of Tax and Fee Administration technically has three years to conduct a sales tax audit, but when they open up a sales tax audit because of the amount of time that they take… Read More
2018-04-23 23:49
Taxpayer records. In any sales tax audit, it is really important that you keep good records. A lot of the times with smaller businesses or with those businesses who don’t have a lot of… Read More
2018-04-23 23:36
The audit conference is an important step in any sales tax audit. The pre-audit conference is a meeting prior to the start of the audit between the taxpayer and all the representative and t… Read More
2018-04-23 23:35
I’d like to speak with you about the audit plan and the importance that it plays in sales tax audit. The audit plan is the agreement between either the client or the representative an… Read More
2018-04-23 23:33
I’d like to talk next about how sales tax audits work. Sales tax audits are one of the areas that most practitioners and a lot of clients are probably most confused about. Whereas inc… Read More
2018-04-23 23:31
I want to talk briefly with dealing with independent contractor and payroll tax audits in general about the application of PIT which stands for personal income tax. When dealing with the pa… Read More
2018-04-23 22:51
I’d like to go through the segregation between an employee and an independent contractor. I think it will help give you an idea of what constitutes a independent contractor and what c… Read More
2018-04-23 22:38
I want to talk about payroll tax from the 10,000-foot view. Here are the three things that payroll tax audits really looking for. The very first thing that a payroll tax auditor is doing is… Read More
2018-04-23 22:37
The first thing I’d like to discuss is the record keeping requirement in California for businesses. There are a few statutes in California that you need to be made aware of. One is th… Read More
2018-04-23 22:36
One of the topics that I’d also like to talk about with respect to businesses particularly bars and restaurants is liquor license holds. In cases where you have to delinquent sales ta… Read More
2017-10-23 17:56
You may be familiar with or have heard of a twelve-factor test or a three-factor test or a lot of different tests that the EDD supposedly uses to classify independent contractors. Through m… Read More
2017-10-22 20:26
After verifying payroll and payroll tax withholdings, the EDD will next go through and verify all the workers that the business issued 1099s to. This is what is known as the EDD Independent… Read More
2017-10-22 19:27
In addition to the payroll verification test, http://www.sambrotman.com/edd-audit-payroll-verification-test/, the EDD will also look at personal income tax withholdings and make sure that t… Read More
2017-10-22 19:12
Our last article, http://www.sambrotman.com/independent-contractor-audit-initial-interview-purpose/, we discussed the purpose of the EDD audit initial interview questions. Those initial que… Read More
2017-10-22 18:25
In our last article, http://www.sambrotman.com/edd-independent-contractor-audit-initial-compliance-interview/, we examined the questions that are asked in an independent contractor audit. I… Read More
2017-10-22 17:49
The first thing that happens in an EDD independent contractor audit is the initial compliance interview. The initial compliance interview serves a couple of different purposes. Number one… Read More
2016-11-11 01:59
On Tuesday, California voters passed historic legislation by voting to allow the recreational use of marijuana in California. Regardless of your opinion about marijuana use, the legislation… Read More
2014-08-25 14:34
Here are the steps that IRS examiners take before a taxpayer makes the irrevocable decision to opt out:
1. Send Status Letter to the taxpayer setting forth the status of the voluntary disclo… Read More
2014-08-24 19:56
DELINQUENT FBAR SUBMISSION PROCEDURES
Some taxpayers may not need to use the Offshore Voluntary Disclosure Program or the Streamlined Filing Compliance Procedure options, but still may… Read More
2014-08-24 19:55
Opting out of the offshore voluntary disclosure program can be a difficult choice. An opt out is an irrevocable election made by a taxpayer to leave the safe harbor of the OVDP, and have his… Read More
2014-08-24 19:50
Example of the Penalty Structure in the OVDP Process
The Criminal Investigative unit is charged with assessing the penalty structure. The structure itself is nonnegotiable and the examiner l… Read More
2014-08-24 19:49
Offshore Voluntary Disclosure – Interview with your examiner
Typically a taxpayer participating in the Offshore Voluntary Disclosure process must at some point have a meeting with… Read More
2014-08-24 19:47
The OVDI Process – After Preclearance is received
If a taxpayer makes all the requisite disclosures and receives the preclearance then they must make their disclosure. Note these… Read More
2014-08-24 19:45
The precise procedures under the Offshore Voluntary Disclosure process are murky at best. They resemble loading a revolver and handing it to someone with an itchy trigger finger. As oth… Read More
2014-08-24 19:42
Eligibility: In order for non-residents U.S. taxpayers to be eligible to participate in the Streamlined Voluntary Disclosure for Non-Residents program they must:
(1) Meet the applicable non… Read More
2014-08-24 19:40
A Summary of the Streamlined Offshore Voluntary Disclosure Penalties
The Title 26 miscellaneous offshore penalty is equal to 5 percent of the highest aggregate balance or value of the taxpay… Read More
2014-08-24 19:38
Streamlined Voluntary Disclosure Eligibility Requirements
In addition to having to meet the general eligibility criteria described above, individual U.S. taxpayers, or estates of indi… Read More
2006-06-07 11:16
It is my firmly held belief that everyone should have access to good, top quality legal representation. However, even by charging the absolute minimum that I can for legal services, there ar… Read More
2006-06-07 11:16
The success or failure of the Dodd-Frank Act will be ultimately judged by history and the impact that it has with combatting some of the problems that have existed with credit rating agencie… Read More
2006-06-07 11:16
Consequences for Non-Compliance of the Law Along with the increased responsibility placed on the credit rating agencies, there are also harsher consequences if they are not compliant with th… Read More
2006-06-07 11:16
Additional Rules for Credit Rating Agencies Under the Dodd-Frank Act The Dodd-Frank Act also has some new rules for the credit rating agencies themselves with the goal of having better corpo… Read More
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