/PRNewswire/ — California business owners and residents may find 2022 year-end tax planning more challenging due to the state’s complex tax and regulatory environment.
Jonathan Weinberg , a Principal in Withum’s State and Local Tax (SALT) practice, examines three areas for Californians to consider for the 2022 tax filing year.
Explore Withum’s Year-End Tax Planning Resource Center for 2022 tax filing strategies.
California Nonresident Tax Considerations
COVID-19 accelerated remote work trends, causing individuals and business owners to evaluate where they live and operate across the country, especially in a high-tax state like California. California is responding to this taxpayer and business exodus by auditing individuals, looking for those who broke their California domicile and are now nonresidents.
According to Weinberg, “Individuals and businesses moving out of California who fail to plan for an audit are planning to fail when audited.” Work with your accountant to ensure you have undeniable proof of residency, or you may be seen by the state as a resident and taxed accordingly.
Paycheck Protection Program and Employee Retention Credit Scams
In October, the IRS warned taxpayers to beware of PPP and ERC scams promising sensationalized savings. The IRS has subsequently started aggressively auditing PPP and ERC claims. “It’s imperative businesses understand the qualifications to not fall victim to these scams,” said Weinberg. He warned that scam victims will…
