EDD Changes Procedures to Collect from Disputed Audit Findings: Urgent Action Required for Affected Individuals and Businesses

SAN DIEGO, April 9, 2024 /PRNewswire/ -- The California Employment Development Department (EDD) has recently introduced significant procedural changes affecting individuals and businesses subject to audit assessments. These changes have implications for those facing audit findings, particularly in cases involving the reclassification of independent contractors, low officer compensation, or unreported officer owner compensation.

John Milikowsky, founder of Milikowsky Tax Law, emphasizes the importance of understanding the revised procedures and taking appropriate action promptly. Individuals and businesses facing audit assessments are encouraged to take the following steps:

1. Review and Note NOA Deadlines: Upon receipt of a Notice of Assessment (NOA), carefully review the document and note the specified deadlines for filing an appeal with the California Unemployment Insurance Appeals Board (CUIAB). Timely submission of appeals is crucial, as failure to do so within the allotted time frame may result in forfeiting the right to appeal.
   
   
2. Prepare Supporting Evidence: In preparing an appeal, gather relevant evidence to support your case. This includes documentation demonstrating compliance with applicable regulations, such as the AB-5 test for worker classification. Providing comprehensive evidence is essential for effectively challenging EDD's audit findings.
   
   
3. Engage Proactively with EDD Collections: Given EDD's practice of initiating collection activities during the appeals process, it's essential to communicate proactively with EDD collections. Contact EDD collections promptly to request a hold on collections pending the resolution of disputes. Failure to do so may result in adverse collection actions, including levies and liens.

To further safeguard their rights, affected individuals and businesses are urged to immediately contact the Taxpayer Advocate Service for EDD at 866-594-4177. Milikowsky Tax Law strongly encourages prompt outreach to ensure there's no ongoing collection activity, thus safeguarding their rights during this process.

For immediate assistance and guidance on navigating EDD audit procedures, individuals and businesses are encouraged to reach out to Milikowsky Tax Law. Our team of experienced professionals stands ready to provide personalized support and strategic counsel to help clients achieve favorable outcomes.

Milikowsky Tax Law specializes in government financial compliance, offering expert guidance and representation in IRS, SBA, and EDD audits, IRS civil and criminal audits, IRS collection actions, and SBA loan investigations.

CONTACT: John Milikowsky, (858) 450-1040, [email protected]

SOURCE Milikowsky Tax Law