Milikowsky Tax Law

10/09/2026

Every audit follows a process, but inside that process, individual auditors make judgment calls constantly. AI has no way to sense tone, patience, or how a specific auditor tends to work. How a case gets communicated to that person often shapes where the audit ends up. If you're facing an audit, talk to a tax attorney before you respond.

10/07/2026

One of the most common mistakes we see in audit response is oversharing, and AI tools make it easy to do without realizing it. A single AI-generated document meant to answer one question can raise five more if it includes information outside the original scope. A tax attorney knows what an auditor is actually asking for, and what to hold back, before anything gets sent.

10/06/2026

Audits. Collections. Sales tax disputes. Worker classification. Payroll tax. Every one of these has rules, deadlines, and strategy behind it.

Milikowsky Tax Law has been defending California taxpayers against IRS, FTB, CDTFA, and EDD for decades. Questions about a notice or an open audit? Reach out to start the conversation.

10/05/2026

An audit letter shows up, and the fastest instinct is to open an AI tool and start drafting a response. It's not a bad instinct. AI can genuinely help organize documents and get a first draft on paper.

What it can't do is read an auditor's personality, know when to send less instead of more, or sense the right moment to pick up the phone instead of sending another email. Those calls come from experience with how IRS, EDD, and CDTFA audits actually unfold once they're underway.

New on the blog: what AI is good for during a tax audit, and where the real strategy still has to come from someone who's done this before.

Read more here:

AI can draft a response to an audit notice, but IRS, EDD, and CDTFA audits often come down to auditor judgment, timing, and what you choose to send. Here's where AI helps and where it doesn't.

10/02/2026

A California sales tax audit can be triggered by a range of factors, including inconsistencies in reported revenue, industry-specific audit patterns, and business transactions involving tax clearance certificates.

In this video, John Milikowsky explains how the CDTFA selects businesses for sales tax audits and what business owners should understand when preparing for the process.

For businesses facing a sales tax audit, EDD audit, IRS audit, or another tax controversy, understanding the factors behind an audit can help inform the next steps.

09/30/2026

Unpaid taxes follow a progression. What begins as a missed payment or filing can develop into broader enforcement across multiple agencies.

Each step introduces new variables, deadlines, and financial impact. Understanding that progression helps you respond earlier and keep control over the process.

Taking action early creates more flexibility and clearer paths forward.

09/29/2026

Facing a tax audit can leave you feeling overwhelmed and uncertain about what comes next. This client found clarity, confidence, and support through Milikowsky Tax Law, with guidance every step of the way and a team focused on their best interests from beginning to end.

09/28/2026

Unpaid business taxes create more than a balance due. They introduce enforcement risk, trigger penalties and interest, and can expand into multi-agency review across IRS, FTB, and EDD.

For many businesses, issues begin with something small, a missed filing, a delayed payment, or a reporting discrepancy. Over time, those issues can develop into notices, audits, and collection activity that impact operations and financial flexibility.

This blog breaks down how unpaid taxes escalate and what to pay attention to as the process unfolds so you can respond early and move forward with clarity.

Read more here:

Read on to learn about the many penalties that could happen to you and your business if you don’t pay your business taxes.

09/25/2026

When transaction volume is high, CDTFA auditors don't review every sale.

They select a sample period and apply the error rate they find across the full audit window. If that sample period isn't representative of normal operations, the projected liability can be far larger than the actual discrepancy. It can be challenged... but only if you know how the methodology was applied.

Find out more on our website: https://www.caltaxadviser.com/cdtfa-audits-disputes/

09/23/2026

The way you respond at the beginning of an audit matters.

Early communication sets the tone for how the process unfolds, from how information is reviewed to how follow-up requests are handled.

This firsthand perspective shows why taking a measured approach helps create clarity from the start.