In a further warning to individuals and businesses who may be tempted by too-good-to-be-true marketing, the Internal Revenue Service added the widely-circulating promoter claims involving Employee Retention Credits (ERCs) to its annual list of Dirty Dozen tax scams....
Experience. Dedication. Results.
Tax Audits
Income and Dividends and Assets, Oh My!
The IRS reminds taxpayers to report all of their worldwide income and ownership of some assets or transactions including cash payments, income from goods and services earned through the gig economy, transactions involving cryptocurrency, and ownership of certain...
TIGTA Reports on IRS Employment Tax Examination Processes
The Treasury Inspector General for Tax Administration (TIGTA) performed an audit of the IRS’ employment tax examination processes, and concluded in its February 13, 2023 report that improvements are necessary. Specifically, the classification process (classifying...
CDTFA Audit Program with Interest Relief
The California Department of Tax and Fee Administration (CDTFA) has updated its long-standing Managed Audit Program (MAP) publication which provides the explanation and benefits available to taxpayers participating in the program. Under the program, certain taxpayers...
Cannabis Property Seized By State Now Up for Sale
Last month the California Department of Tax and Fee Administration (CDTFA) auctioned off two properties seized due to illegal cannabis sales. One of the properties, in Whittier, owes over $850,000 in taxes to the state which the CDTFA hopes to recover from its...
What Triggers an IRS Audit?
The Wall Street Journal listed 10 Red Flags that the IRS looks out for. Tax credits for children, healthcare premiums, earned income, and now pandemic related grants, loans, and credits make up a majority of their list. Other red flags are small business, especially...
California Businessman Indicted on Tax Charges
The importance of paying over employment taxes cannot be overstated. Larry Kudsk, a Berkeley construction businessman, learned this the hard way recently when he was indicted on seven counts of failing to pay over employment taxes he withheld from employee’s...
Male Escort Stripped of Freedom – Incarcerated for Tax Evasion
Any time a business receives payments regularly in cash, the business can be a target of an IRS audit. It is tempting for many business owners to forego reporting cash receipts, not realizing the many ways the IRS and Department of Justice Tax Division can catch up...
Business Owners – Pay Your Payroll Taxes! San Diego Restaurant Chain Manager Pleads Guilty to Tax Fraud
A San Diego restaurant manager with over 110 employees plead guilty to employment tax fraud this week. The manager has agreed to pay over $2.2 million in restitution to settle the $1.5 million tax loss he caused to the IRS by paying his personal income taxes rather...
Rolling in Dough(nuts)
The family of three Dippin Donut stores in New York were figuratively rolling in dough when they allegedly concealed over a million dollars in cash sales by depositing the money into their personal accounts instead of their business accounts. The trio also evaded...
