I have a CA S corporation, Can EDD hold me personally liable to a tax assement?
Posted on November 15, 2008 by admin
Robert S asked:
The Employment Developement Department of california has threaten me with a tax assement and I would like to know if I can be personally held liable for it. In other words if I don’t pay it and they send it to collections could that be reported on my personal credit report?
The Employment Developement Department of california has threaten me with a tax assement and I would like to know if I can be personally held liable for it. In other words if I don’t pay it and they send it to collections could that be reported on my personal credit report?
Yes, definitely.
Yes they can and will. The relevant law is Section 1735 of the California Unemployment Insurance Code. You also be held liable for unpaid sales tax and federal withholding taxes. I handle these kinds of problems routinely with my clients. You can contact me through my profile if you need additional information.