EDD Audit Representation (Employment Development Department):
Dealing with an EDD audit can feel like an unmanageable ordeal. The Employment Development Division or EDD is one of the largest tax collection agencies in the United States and is charged with collecting and enforcing employment taxes. Only the Internal Revenue Service collects more payroll tax dollars than EDD. During the last few years, the EDD collected billions of dollars in employment taxes from millions of employers. To ensure compliance with the tax laws, the EDD audits employers records. This is unfortunate because a lot of small businesses may not be ready for an EDD audit. You can see how Bismark Tax can you during this challenging time. We have 1000s of audit hours under our belts.
So what is an Audit?
Great question. The EDD informational flyer given to employers at the beginning of an audit states
“The payroll tax audit provides education outreach to employers regarding their state employment tax obligations and ensures that benefit coverage is provided for workers who are entitled to such coverage under the law.” http://www.edd.ca.gov/pdf_pub_ctr/de231ta.pdf
That doesn’t sound too bad, right? The EDD only wants to teach employers about tax topics such as, who is an employee and who isn’t. That’s so kind of them.
Unfortunately, the EDD Audit Manual has a different, more accurate, definition:
“An audit is a systematic examination and verification of a subject employer’s books and records, conducted in accordance with auditing standards and procedure. ” EDD Tax Audit Guidelines DE 40.
The best thing about hiring our company for audit representation is that you do not have to show up to the audit. Clients, primarily, wish to not show up and that is ok. Sometimes we will need your assistance at the audit exam, but for the most part our attorneys will handle the audits on their own. Bismark Tax, Inc. will handle all parts of the audit, so that you can go back to work and most importantly be able to sleep comfortably at night. Please give us a call for a Free Consultation (855) 829-6055