Milikowsky Tax Law

08/28/2026

Before you cut that first 1099 check, there's a short list of things to verify.

A missing business license. A contractor who works exclusively for your company. A payment structure that sends the wrong signal to EDD. Any one of these can create serious exposure in an audit, and most business owners don't find out until the notice arrives.

John Milikowsky walks through the practical checklist in our latest article. Worth reading if your business uses independent contractors.

08/26/2026

You have 30 days to file an appeal after receiving a final CDTFA notice...

Filing a petition allows you to move the matter into a formal review process and present your position with supporting documentation.

Meeting that deadline keeps the process active and your position fully represented. If your business is experiencing a CDTFA aduit, reach out to our team today - call us at (858) 450-1040.

08/25/2026

One of the most common reasons an independent contractor relationship fails an EDD audit has nothing to do with the work itself.

It's a missing business license.

In most California cities, anyone doing business commercially is required to have one. EDD auditors know this, and they know where to look. If your contractor doesn't have a current business license in the cities where they work, that gap goes into the audit file.

Before you issue the next 1099, it's worth checking. That information is public record.

08/24/2026

Most business owners assume the biggest risk in an independent contractor relationship is the contract itself. EDD often starts somewhere simpler: does the contractor have a business license?

John Milikowsky walks through the full checklist in this article, including why payment structure matters, what single-client arrangements signal to auditors, and where misclassifications tend to originate.

If your business uses 1099 contractors, this is worth a read before a notice arrives.

Before you pay a worker as a 1099 contractor, there's a short checklist every California business should run through. Here's what EDD actually looks for and what gets businesses in trouble.

08/21/2026

A business goes through a hard stretch. Losses pile up. The company survives, stabilizes, and eventually starts generating real profit again.

That recovery is worth celebrating. It can also put you on the IRS's radar.

When prior losses are large enough to zero out current tax liability, the IRS wants to know those losses were real. They will look at the records from the years the losses occurred, not just the year the carryforward was applied. For businesses that went through difficulty a decade or more ago, that is a documentation question that deserves attention now, not after a notice arrives.

08/19/2026

Choosing the right tax attorney means finding a team you can trust from the very first conversation. This client experienced the professionalism, expertise, and attention to detail that define Milikowsky Tax Law. When every detail matters, having the right team by your side makes all the difference.

08/18/2026

John Milikowsky has seen IRS audits reach back further than most business owners think is possible. In this video, he walks through a real case involving a 20-year audit, explains what net operating losses have to do with it, and breaks down what business owners should know before they find themselves in that position.

08/17/2026

A San Diego manufacturer lost $18 million in sales, nearly collapsed, rebuilt over years, and finally became profitable again.

When their prior losses zeroed out their federal tax bill, the IRS opened an audit. Not of the current year. Not of the last three years. Of 20 years of returns.

John Milikowsky breaks down how this happens and what it means for any business carrying forward significant losses.

Read more here:

Learn why one San Diego manufacturer faced a 20-year IRS audit and why you should have an experienced IRS audit attorney

08/14/2026

California's worker classification laws changed in 2020. For construction businesses using independent contractors, the exposure since then has been real and enforcement is active right now.

Swipe to know why construction draws this level of scrutiny and what to do if EDD comes knocking.

08/12/2026

First thing Jason Ramsay says about getting an audit notice: don't panic.

Second thing: don't start sending records to the state on your own.

There's a middle ground. Get someone who can do an internal review of your situation before anything goes to the agency. Understand where your risk is. Then respond.

If your books are clean, you have a strong position. A tax attorney helps you present it correctly.

Milikowsky Tax Law defends California business owners in audits with EDD, CDTFA, FTB, and IRS. caltaxadviser.com