How Does AB 147 Change California (CDTFA) Sales Tax Requirements for Out of State Retailers?
On April 25, 2019, California passed Assembly Bill No. (AB) 147. AB 147 amended Revenue and Taxation Code (RTC) section 6203 to require retailers located outside of California to register with the California Department of Tax and Fee Administration (CDTFA) and collect California use tax in certain circumstances. Therefore, the CDTFA has made significant changes... Read More
How did AB5 Change California Worker Classifications?
A common question that taxpayers ask their tax attorney is whether a worker is an independent contractor or employee. In addition, what are the boundaries to that distinction? What are the factors? What if the worker prefers to be an independent contractor, has her or her own business, works for several employers simultaneously, and has... Read More
WHAT CAN I DO IF I DEFAULT ON MY IRS INSTALLMENT AGREEMENT?
If you have a tax liability and you default on your IRS installment agreement, the IRS will generally terminate your installment agreement. However, you may be able to reinstate your IRS installment agreement without providing updated financial statements. As a result, reinstating an IRS installment agreement may be a prime option. The IRS will terminate... Read More
EDD “Safe Harbor” Rules for Independent Contractors
In our last blog post we discussed what happens if the EDD reclassifies your independent contractors as employees. In this post, we’ll discuss how to ensure that that doesn’t happen if you have domestic workers. These are considered the EDD “safe harbor” rules for employers. According to the California Unemployment Insurance Code, section 687.2, an... Read More
What Happens if the EDD Reclassifies my Independent Contractors as Employees?
In a previous blog post we discussed the factors to consider in determining whether your workers are employees or independent contractors. In an EDD worker reclassification audit, the EDD may reclassify independent contractors as employees. So, what if your business is audited by the EDD and the auditor determines that your “independent contractors” should actually... Read More
FAQs – The Impact of the Shutdown on Tax Court Cases
Following the longest government shutdown in US history, taxpayers and tax professionals with a case pending in US tax court may have some questions about how to proceed at this point. Following are the answers provided by the IRS to some of the IRS Tax Court FAQs you may have: What should i do if... Read More
FAQs – Resumption of IRS Audits After the Shutdown
Although IRS employees returned to work on January 28, 2019 and resumed activities, many taxpayers who were in the process of an IRS audit when the shutdown began have questions about what to do now. Below are the answers provided by the IRS to some of the IRS audit FAQs you may have: 1. I sent... Read More
The EDD Independent Contractor Test
If you are a business owner in the State of California and you have individuals working for you, it is critical to know whether those individuals should be classified as independent contractors or employees. The EDD uses an independent contractor test when analyzing the factors to determine whether a worker is an employee or independent... Read More
IRS Tax Filing Season to Begin On Schedule
In spite of having passed through the longest government shutdown in the nation’s history, the IRS has confirmed that the IRS tax filing season will begin on schedule. Read more in the article below. https://www.irs.gov/newsroom/irs-confirms-tax-filing-season-to-begin-january-28
IRS Reopens After Government Shutdown
Although the IRS has reopened, some speculate that it could take up to a year to get back to normal. Read more in the article below. https://www.forbes.com/sites/kellyphillipserb/2019/01/27/with-shutdown-over-for-now-irs-stares-down-huge-backlog-as-tax-season-begins/#6c56b549311d