[Skip to IRS Rights]
You are always entitled to courteous and timely service from the Employment Development Department (EDD) employees. If you believe you have been treated inappropriately, you should contact the employee’s supervisor.
Information maintained by the EDD is confidential and cannot be published or made available for public inspection. However, in certain instances, the law requires this information to be shared with other governmental agencies. When these instances occur, the EDD should closely follow the law to protect your rights.
You have the right to call upon the EDD for accurate information and assistance and to have all your questions answered. The EDD’s policy is not to penalize employers for failure to comply with the law if it can be substantiated that they acted on incorrect instructions from the EDD staff.
If you owe taxes, you have the right to receive a clear and accurate account statement. Any adjustments made to your account will also be reflected in the statement. If you have questions or believe the statement contains an error, you are encouraged to contact the EDD at the address or phone number provided on the statement. [See How to respond to an IRS Notice or Letter]
The California Unemployment Insurance Code provides that an extension may be granted for up to 60 days when GOOD CAUSE is shown for a delay. Under an extension of time to pay, interest must be charged at the current annual rate and will accrue each day from the original delinquent date to the date of payment.
WHAT CONSTITUTES GOOD CAUSE?
Good Cause exists where the circumstances causing the delay are clearly beyond the control of the employer or where the delay is due to a mistake or inadvertence under circumstances not reasonably foreseeable by the employer. Employers must establish that (1) they acted in good faith (demonstrated history of timely payment and reporting). (2) they acted in a diligent, timely, and prudent manner, and (3) the circumstances could not have been reasonably foreseen. This is similar to what the IRS calls reasonable cause for penalty abatements.
If you are charged penalties for a late payroll tax return or payment, you may request that the penalties be waived. A waiver of penalty request will not be considered until the employer submits a request on e-Services for Business or in writing that explains why good cause exists and the reason(s) for the untimeliness. Billing will continue while the request is being reviewed. To avoid accrual of interest and to stop the collection process, the amount due must be paid. If it is determined that the penalty should be waived and the penalty has already been paid, a refund will be issued or applied to any outstanding liability.
The request must include a detailed explanation showing GOOD CAUSE for the delay. Penalties may be waived when good cause is shown for a delay in:
If your business is selected for an audit, the EDD will attempt to schedule the audit at your convenience. You have the right to an impartial audit and a full explanation of the audit findings.
You have the right to have someone, such as an attorney, enrolled agent, or accountant, present during the audit or to represent you in your absence. [See 6 Ways to Reduce Your Chance of an IRS Audit]
When you disagree with an action taken by the EDD, you are encouraged to discuss the issues with an EDD representative, supervisor, and office manager. You may also appeal certain actions to the California Unemployment Insurance Appeals Board (CUIAB). The CUIAB is a review board independent of the EDD. Actions that may be appealed to the CUIAB are:
When the EDD takes an action that may be appealed, you will be notified by mail. To begin the appeal process, you must file a petition. The notice the EDD mails to you will explain your petition rights and responsibilities. Please read all the EDD notices carefully because strict time limits apply for filing appeals. [See What to Know About IRS Appeals]
Employers have a legal obligation to voluntarily report and pay payroll taxes and withholdings when due. California Personal Income Tax and State Disability Insurance are “trust fund taxes” that are withheld from employees’ wages. You hold these funds “in trust” for the EDD. [See How the IRS can collect Trust Fund taxes from you personally]
Although the California Unemployment Insurance Code does not provide for installment agreements, if immediate and full payment of payroll taxes creates a financial hardship, an installment agreement may be requested.
Installment agreements will not be granted in cases where a commercial loan or other means are available to pay the liability. Contact your local ETO for
information on installment plans or to request Information Sheet: Installment Agreement (DE 631P).
When an installment agreement is approved, it is important to adhere to the terms of the agreement and to submit all future returns and payments timely. Failure to do so will initiate immediate collection action without further notice. If, during the course of an approved installment agreement, it is discovered that you are able to pay the tax in full, the agreement may be canceled. The agreement may also be canceled if it is discovered that pertinent financial information was withheld. In all instances of an approved installment agreement, the EDD will file a state tax lien. In addition, any refunds due to you by any other state agency will automatically be applied to the unpaid tax. [See What you should know about IRS Installment Agreements]
In addition to payment plans, an Offers In Compromise (OIC) program has been established for accounts that are both inactive and out of business. Qualified applicants who do not have sufficient funds and/or assets to pay the liability within the foreseeable future may be able to eliminate their payroll tax liability at less than the full value. Contact the Taxpayer Assistance Center at 888-745-3886 for eligibility requirements. [See What you should know about an IRS Offer-in-Compromise]
The EDD’s Settlements Program allows an employer and the EDD to settle a disputed liability, thereby avoiding the risks and costs associated with litigating the disputed employment tax matter.
Call the Settlements Office at 916-653-9130 for more information.
If you do not pay your payroll taxes, interest, and penalties, the EDD may begin to collect the money you owe using the following collection activities:
Very good experience and glad I made the decision to use this company. Michael was professional and courteous in all of my dealings with him. My tax dilemma was quickly resolved and Michael even waived much of his normal fee. Where else have you heard of a business doing that? Without question, I would recommend Landmark Tax Group for anyone seeking a fair resolution for a tax problem.
Michael was fantastic! He understood my case very quickly, got right to work and was super prompt with communications. His professionalism and his friendly demeanor immediately put me at ease. I whole heartedly recommend contacting them if you’re in need of advice and assistance.
I received great advice in how to deal with the FTB, i don’t review often, but when someone is honest and legitimate, they do deserve a review. My questions were answered, and if i didn’t quite understand, Micheal was more than willing to give me follow-up answers to better help me. I highly recommend Landmark Tax Group, just for the mere fact that they treat you as a human being, Not a cash cow.
I had some returns from previous years to complete after receiving a hefty bill from the California Franchise Tax Board. Michael was prompt in answering my questions and very helpful and reassuring. We had several back and forth communications and this was all done for free since they do not prepare tax returns. He gave me some contacts and advice and now I’m on my way to getting my situation resolved. I’m very thankful for his advice and guidance.
While Michael’s scope of practice meant that we ultimately could not work directly to resolve the issue I was having, he was very prompt, professional, generous and kind in taking time out of his schedule to consult with me, refer me to his network of colleagues- not just once, but a second time even months after. Some professionals are just after services and compensations but Michael strikes me as someone who genuinely cares about your situation and wants to see to it that it gets resolved. These other reviews speak to that as well. You never want to be in a situation where you need to be looking up tax help, but God forbid you ever are, Michael is the person you want in your corner!
Michael and Landmark Tax Group were simply awesome. I like so many others had a year’s old tax issue arise with California FTB. I no longer live there which compounded the stress of the situation. The state had seized monies and filed a lien. After a call to an online tax relief place and some sketchy phone calls I was so happy to find Michael and immediately felt in good hands… at a time of considerable panic.
Fast forward to today and with his help I am totally debt free. He saved me $23,000
I highly recommend Michael and Landmark Tax Group
Michael Raanan is an angel! Michael went above and beyond for me. He was very knowledgeable, professional and very thorough! He is easy to talk to and amazing at what he does. I have a feeling that everyone at landmark tax group shares this way of professionalism! I highly recommend coming here for any and all of your tax help. They will help you and you will be more than pleased with them. 🙂
After calling the other highly advertised tax assistant agency’s and being disappointed with how they responded to my tax matter, I feel fortunate to have found out about the Landmark Tax Group. Michael was very understanding of my situation, and I felt very comfortable dealing with him. He was very knowledgeable and professional in handling our tax issue in a timely manner. I would highly recommend The Landmark Tax Group to anyone who needs assistance in dealing with the IRS.
Wow, just wow. I called Michael today to ask about some major tax issues I had with a defunct corporation I’d started years ago. Michael talked to me for about half an hour, walking me through options and generally helping me understand my options.
Because of him, I’m going to rest nicely tonight for the first time in weeks. It was great to hear that he used to work in IRS collections for 8 years too… which made me feel a lot more secure in his answer.
In all, I’m completely stunned by the level of service he gave to a random stranger who called in and wasn’t going to turn into any revenue for him. I have to imagine that his level of service for actual customers is unreal.
Fast, dependable, reliable, full transparency. Michael Raanan of Landmark Tax Group allayed my fears spending the rest of my senior years paying my tax debt. As a result of his extensive knowledge of the tax code, the right questions to ask, and his dedication to my case, I had information, resolution and a plan of action within 24 hours, start to finish. Amazing! I highly recommend Landmark Tax Group!
We were very pleased with the expert assistance we received from Michael Raanan at Landmark Tax Group. In a matter of months we had a resolution to our IRS tax issue. He was very knowledgeable, professional, explained things in easy to understand terminology & was very easy to discuss our tax issues with. We called around to other tax groups & just felt the most comfortable speaking & working with Michael. We are happy to recommend him & his firm.
Michael Raanan represents the highest level of professionalism, integrity, decency, and true concern for his clients. His advice every step of the way was right on target. The end result was a savings of $13,000 on my taxes.
I have already referred him to the other members of my financial team and have complete confidence in referring any clients to him. He is a shining star in his field.
Oh, did I mention how reasonable his fees are? Exceptional considering the amount of attention he provides.