Employment Development Department
Auditing Process in CA
Before your records are audited, you will have an appointment with the auditor and he or she will conduct an entrance exam. According to the best tax experts (whom include former IRS tax lawyers) in CA, this exam will often explain why the audit is taking place, what is expected from you, and the process. You will have the opportunity to ask the auditor questions.
The next step in an EDD audit involves the auditor reviewing all of your records and books. The expert tax professionals (whom include former IRS tax attorneys) in CA said the reason behind this is to verify that you own the business, all employees are paid a fair wage and in accordance with the law, and to uncover any unmade payments.
You will want to make sure that you provide the auditor with all of the records that you have. You may find that the auditor requires more records than what you have furnished, or they may only ask for a handful of specific records.
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Once the audit has been completed, the auditor will discuss the outcome of the audit with you. It is important that you have tax experts (whom include former IRS tax attorneys) in CA present with you during this time, so that you are properly informed, you know your rights, and you can make decisions in a timely, but not rushed manner.
There are several possible outcomes of an EDD audit and those outcomes include:
- An underpayment and overpayment
- A no charge audit, which is where no differences are found
- an underpayment, where the differences in tax liability will be assessed
- an overpayment, where you will receive a refund due to paying more than necessary
- You must reclassify your independent contractors as W-2 Employees
If you are unhappy with the outcome of the audit, with the help of the best tax experts (whom include lawyers, you can opt for an appeals process. You will then have the option to have a reassessment performed. It is important that you gain experienced representation from the best tax experts (whom include former IRS tax attorneys), and should you choose this option. Our experienced tax experts (whom include IRS tax lawyers in CA can represent you in the appeal process.
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