HELPING BUSINESSES WITH PAYROLL TAX AUDIT PROBLEMS
Don't worry if you are unfamiliar with the EDD's audit process. We can represent you at every stage and communicate with the IRS and EDD on your behalf. We work with the auditors across multiple cases; hence, we know how to handle even their most unreasonable demands.
We will negotiate with the IRS or EDD on your behalf to reach a favorable agreement. This may include negotiating a settlement or payment plan for unpaid taxes or disputing any discrepancies or errors found during the audit.
If you are unsatisfied with the audit's outcome, we can help you appeal the decision. We will gather the necessary paperwork and initiate a more powerful appeal without just restating the arguments made in your initial defense.
Running a business is not a bed of roses; occasionally, money gets tight. Once this happens, some businesses try to make ends meet by deducting money from the payroll tax withholdings. Although this money might be channeled to other uses like paying utilities and rent, it also attracts more debts and penalties. When this habit starts, it's tricky to get out of it, and bear in mind that the Employment Development Department (EDD) and IRS do not grant immunity to businesses using their payroll withholdings to remain operational.
This is not the only problem businesses have when it comes to payroll tax debt. Employers get into trouble with the EDD and IRS for classifying workers as "Independent contractors" instead of employees. The case ruling on Dynamex Operations West, Inc. v. Superior Court of Los Angeles shows the EDD is becoming unforgiving when performing these investigations, which are basically worker re-classification audits. All the people you worked with in recent years could be subject to audits, resulting in massive liabilities for which you might be personally accountable.
Now, the most unfortunate thing is that there is no uniformity in enforcing some of these regulations. Most business owners want to follow the law and pay the correct amount of payroll taxes, but EDD gives a lot of discretion to their auditors, and the outcome seems to be a disorganized approach to enforcing the law.
Save your business trouble and money by getting informed from the start. Contact Brotman Law today and get professional help.
Our aim in the California payroll tax audit representation process, other than getting you the best possible result, is really about providing consistency and predictability to something that is highly susceptible to the whims of the individual auditor.
Managing risk for our clients in this area is about building confidence in how they are structuring their workforce and in making sure that they are paying the proper amount of tax.
Over the years, our largest grievance with the California state payroll tax audits has been their arbitrary and capricious application of harsh penalties and the way that they sometimes hide behind the CUIAB appeals process in pushing forward sloppy work.
Seeing potential penalties 5-6 in excess of the amount of tax owed and working hard at various levels of the state government to erase these penalties has caused us to rethink our approach to payroll tax audits.
We want to make sure that our clients are adequately informed about the risks associated with California payroll tax audits and adequately prepared to defend against that risk.
We have developed a system that is straightforward, easy to follow with the guidance of our team, and designed to get you out from under the audit as quickly as possible.