OWE STATE PAYROLL TAXES + California + Payments Options + Offer in Compromise + Settle + File Taxes + Audits

February 11, 2016
Written by: Jim Magary

 

Fresh Start Tax

 

We are an AFFORDABLE full-service firm that specializes in the resolution of all federal and state tax matters. Since 1982.

 

We have over 206 years of professional tax experience and over 65 years of working directly for government agencies and the local, district, and regional tax offices.

 

If you owe any type of tax or state payroll taxes and need to understand the process of payment options, the offer in compromise to settle your tax debt, the filing of back taxes or going through a tax audit call us today and speak to a true tax professional and tax expert.

Since 1982 we have been serving a nationwide audience in resolving any IRS, federal or state tax matter.

We are A+ rated by the Better Business Bureau.

 

The Employment Development Department

 

The EDD is in charge of California Payroll Taxes.

The EDD regularly tries to reclassify independent contractors to employee status to get business owners to pay additional California payroll taxes.

The EDD can personally hold an individual taxpayer liable for a corporation’s nonpayment of California payroll taxes. they will aggressively go after any individual responsible party who was supposed to pay over this tax.

The EDD  has criminal authority. They may criminally prosecute a taxpayer for not paying over their required California Payroll Taxes.

The EDD has powers to file tax liens, levy and seize bank accounts, and close down for the nonpayment of California payroll taxes. As a former IRS agent and teaching instructor, I understand this process well is I myself have closed over 300 businesses in my time with IRS.

The EDD has an Offer In Compromise program that can save qualified taxpayers  who can settle their debt for pennies on a dollar.

 

What you should know before preparing an Offer in Compromise

Are you an Offer in Compromise candidate?

If you are an individual or business taxpayer that does not have the income, assets, or means to pay your tax liability now or in the foreseeable future, you may be a candidate. The Offer in Compromise program allows you to offer a lesser amount for payment of a non-disputed final tax liability.

Generally, the State approve san Offer in Compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.

 

Although you will be evaluated each case is based on its own unique set of facts and circumstances, we give the following factors strong consideration:

 

• The taxpayer’s ability to pay.

• The amount of equity in the taxpayer’s assets.

• The taxpayer’s present and future income.

• The taxpayer’s present and future expenses.

• The potential for changed circumstances.

• Whether the offer is in the best interest of the state.

The process your application?

They  will only process your Offer in Compromise application if you have done all of the following:

• You have filed all of the required tax returns. If you have no filing requirement, note it on the application.

• You have fully completed the Offer in Compromise application, and provided all supporting documentation.

• You agreed with the Franchise Tax Board on the amount of tax that you owe.

• You authorized the Franchise Tax board to obtain your consumer credit report and to investigate and verify the information you provided on the application.

Will a collateral agreement be required?

Upon approval, the State may require you to enter into a collateral agreement for a term of five years. Generally, a collateral agreement will be required if you have significant potential for increased earnings.

A collateral agreement requires you to:

• Pay us a percentage of your future earnings that exceed an agreed upon threshold.

Are collections suspended?

Collection activity is not automatically suspended.

If delaying collection activity jeopardizes our ability to collect the tax, we may continue with collection efforts. Interest will continue to accrue.

 

OWE STATE PAYROLL TAXES + California + Payments Options + Offer in Compromise + Settle + File Taxes + Audits

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