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I owned a California corporation but I abandoned the

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I owned a California...

I owned a California corporation but I abandoned the business and move to Arizona in 2010; I am told by the EDD that the corporation has $9,000 in payroll tax liability. Is there a way for me to avoid personal responsibility for these taxes?

Accountant's Assistant: The Expert will know how to help. Is there anything else the Expert should be aware of?

The payroll tax was for 4th quarter 2009 and 1st quarter.

Submitted: 8 months ago.Category: Tax
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9/20/2017
Tax Professional: Tax.appeal.168, Tax Accountant replied 8 months ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,642
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
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Hello. Thank you for choosing this Q&A service for assistance. My name is Angela. I will be assisting you.

In brief, the answer is no. SEE BELOW:

Back in 2005, the California legislature enacted, for the first time in history, a 20-year collection statute of limitations for taxes owing to the Franchise Tax Board (FTB). At that time it was widely believed that the 20-year limitation period also applied to the EDD. Apparently, this is not the case. I searched the California Unemployment Insurance Code in vain trying to find a statute similar to the 20-year collection statute applicable to the FTB. No statute exists for the EDD.

According to EDD sources, California law provides no statute of limitations for the collection of unpaid EDD tax obligations. On the face of it, this means that the EDD can try to collect such debts indefinitely. So, the answers to the clients who have very old EDD debts – yes, the EDD can attempt to collect the monies by unkind means such as a bank account levy, wage garnishment, or even putting in a keeper to seize the assets of a going business.

REFERENCE SOURCE:

http://www.robertschriebman.net/Articles/How-Long-Does-The-Edd-Have-To-Collect-Taxes.shtml

As the EDD can seemingly try to collect until they get tired, you might try to enter in an Offer In Compromise with them. SEE BELOW:

Article 8, Sections 1870-1875 of the California Unemployment Insurance Code (CUIC) governs the Employment Development Department’s (EDD) Offer in Compromise program. This law permits the EDD to receive applications for Offers in Compromise that may enable a qualifi ed tax debtor to eliminate an employment tax liability at less than full value.

REFERENCE SOURCE:

http://www.edd.ca.gov/pdf_pub_ctr/de631c.pdf

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