Ask The California Employment Tax And Payroll Tax Attorney – EDD In-Person Audits To Resume

By Robert S. Schriebman
2023

FYI From Bob

I recently spoke with a high-ranking EDD Manager who informed me that the COVID-19 era of desk audits is coming to an end. A desk audit means the EDD conducts its audits remotely with most auditors working away from their regional offices. Desk audits allowed for the partial control of the flow of documentation, communication, and information. The EDD will now be resuming in-person employer interviews. EDD audits will also be demanding more transparency as new auditors are instructed to demand extensive interviews from their internal new worksheets and questionnaires.

It may still be possible to require the auditor to meet and confer with the employer’s representative such as an attorney or an accountant. I have always found it to be in the employer’s best interest to have these types of meetings away from the business premises. This is why I conduct these types of in-person meetings in my office where I have the employer standing by the phone in case there are questions that only he/she can answer.

What Does the Future Hold?

I am seeing a more aggressive EDD demanding more transparency than ever before. We can look forward to more intense scrutiny and demands for records that have previously not been routinely requested. For example, there will be more demands for credit card transactions to determine if the entity is paying personal expenses that should be attributed to additional taxable compensation. The EDD is also relying upon external studies to determine industry-wide compensation for the type of industry and officer compensation. This will be projected onto the executive’s current compensation and taxed without regard whether the company has the financial ability to pay the projected amounts.

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Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States. He has successfully dedicated more than 50 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments. Mr. Schriebman is in private practice. He is not affiliated in any way with the EDD, and he is not employed by the EDD or any other agency of the State of California.

Robert Schriebman has written the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House in addition to the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.

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