How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lane Your Own Question

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3989
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

If a company goes out of business and owes disability taxes,

Resolved Question:

If a company goes out of business and owes disability taxes, who pays them in the state of california? It is non profit.
Submitted: 11 months ago.
Category: Tax
Expert:  Lane replied 11 months ago.

Lane :

Hi, do you mean the payroll taxes to cover SDI in California?

Lane :

While I'm waiting, you may want to take a look at this: http://www.edd.ca.gov/payroll_taxes/How_to_Correct_Prior_Reports_or_Deposits.htm

Lane :

I still don't see you coming into the chat session, so I'll move us to the "Q&A" mode. … Maybe that will help … (We can still continue a dialogue there, just not in real-time chat, as we can here)

Lane :

Since you're still not coming into the chat, I'll answer in a general fashion:

Lane :

California follows the Federal practice of holding the "responsible party" responsible for paying any taxes due, if that person (or persons) were responsible for collecting and paying over the insurance premium (or other payroll taxes) to the state.

Lane :

Again, I'm making huge assumptions about what you're asking here, but if you'll come back and provide some detail we can go from there

Lane :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

Lane :

But again, please let me know if you have any questions at all ...


Lane

Lane :

Ahhh there you are!

Lane :

You're talking about SDI here?

Customer:

yes

Lane :

Then yes, EVENTUALLY, IF you are responsible for paying them, then they will go through a process to identify who the responsible parties are (probably get them from the original(and amended) articles filed with Sec of State ... and (please done't shoot the messenger here) begin to send demand letters

Lane :

What you are SUPPOSED to do when you dissolve is file a last information statement with Sec of State and declare that all tax are paid, if any are due

Customer:

In other words, the chairman of the board and the CEO will have to pay them?

Lane :

I'm afraid so ... unless there wer employess that hd the responsibilities and you can make the case that they were derelict in their dutite and the CEO/ oard was unanware

Lane :

sorry for the typos ... "duties"

Lane :

I hope you'll ate my answer on the accuracy and thoroughness, rather than any good news/bad new content (Maybe having all the facts will help you to "see around some corners")

Lane :

But yes, the "responsible party" method is pervasive... all taxing authorities use this as a way to collect payroll taxes of all kinds

Lane :

What they WILL NOT do is go after the employees themselves(who the money was being collected from)

Customer:

I d not feel badly about your answer, I have a brother who is a cpa who told me that same thing, I was just checking it

Customer:

I feel badly that I may have to pay it, however

Lane :

NOW, if you can show that the money was never deducted from paychecks, you will have a much better case for some lenience

Lane :

I understand ... one thing is for sure... If you can get to them before they get to you? The result is always better... they may work out a payment schedule, for example

Lane :

They ALWAYS reward proactivity

Customer:

I am talking about the money the employer pays to the state for some kindof insurance, without which you cannot open your doors and do business

Lane :

yes, that's SDI (State Disability Insurance)

Lane :

Again, most employers DEDUCT this from the employees checks ... IF the money was never deducted (hence they cannot try to make a case that the money was deducted and used irresponsibly) you have a MUCH better case

Customer:

I will definitely get to them before they go after me. I am for proactivity-- However, it was not I who did this, a woman embezzled money from the business, and left us in such a hole, we could hardly pay our insurances, but we did work out a schedule to pay them, we got caught in an audit last year in which they said we only owed 500. which we paid, but they just sent us another letter saying that they found another 10,000. that we owe.

Lane :

WOW, .. 1st, sometime the right arm doesn't know that the left are is done go to speak (Make sure that you respond to this LATEST with the documentation from what happened last year) .... then (2) May be stating the obvious here, but make sure you (maybe for the second time) document that this was the product of an embezzlement ... You may even want to press criminal charges for "THEFT by CONVERSION," to show that you are taking action on this and that you are NOT the responsible party

Lane :

"arm is doing"

Lane :

What this SHOULD turn on is WHO is responsible ... If this person embezzled the funds, you should not be help responsible BUT (back to being proactive) you want to document that in any way you can

Customer:

WE have a case with the Irwindale Police, but they say they have so many cases that they hardly have time to work on them all and have encouraged us to do a civil suit, but we dont have $ for a lawyer, so I dont know what to do. We also have evidence that the auditor did eveything the bad girl told him to, so we would like to sue that company as well, but again, no money

Lane :

Again, I would take a firm position (use these words) that "We have filed charges with Irwindale Police, and the RESPONSIBLE PARTY (let them know that you know what this means) is the person who embezzled from the organization ... Further that "If we can recover from this individual, we will promptly remit ..."

Customer:

Thank you very much, is there any way I can do this in the court system myself? I have heard that the courts were originally set up so that anyone could go in there and do a thing, is that the case?

Lane :

Yes, although Pro Se cases do not have a great track record. ... let me get the process for you

Lane :

Here's a great references on the traps one can get into by representing one's self in the CA court system:


Handling Cases Involving Self-Represented ... - California Courts

Lane :

Also ...

Lane :

Although tis is ORange c**ty, the process is the same: http://www.occourts.org/self-help/criminal/obtaininganattorney.html

Customer:

in the state of California, can a person go pro se for a non profit corporation that is out of $?

Customer:

P

Lane :

Remember that if this hasn't reached the actual court ordered judgment stage, then the things I've mentioned above should ce sent to the CA revenue Dept (Franchise Tax board) ... It MAY be that if you can document that you are pursuing this person that has embezzled, this may never reach the point of a court ordered judgment

Customer:

I am sorry I was referring in my mind to the prosecution in civil court of the embezzler?

Lane :

To answer your queston? YES ..I would submit this as the reason that you are representing yourself... ALTHOUGH, again you can get court appointed counsel once you shpw that the means ($) aren't there to pay for representation

Customer:

Thank you

Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3989
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 6 other Tax Specialists are ready to help you
Expert:  Lane replied 11 months ago.

Hi Penelope,

Keep in mind tat you may be able to get an attorney to represent you on a contingency basis..

... they only collect a percentage of what you collect, IF they win for you.

In a CIVIL scenario this can make a lot of sense.

Lane

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.