Can the IRS collect Monies owed to the state (EDD)

Asked 9 months ago - Santa Clara, CA

I have an over payment and did not pay taxes on them? This was through EDD. I am working to pay all of what is owed with EDD. The IRS continues to harass me with letters. I have spoken to them on the phone and wrote letters to explain my situation. Nobody at the IRS office has ever explained the codes or laws that mandate I pay. I would love to read them.
EDD is state not federal so I do not see the correlation.

Attorney answers (4)

  1. Phillip Monroe Smith

    Contributor Level 18

    7

    Lawyers agree

    Answered . The IRS does not collect funds for the State of Calfornia. Contact a tax practitioner and have him/her review your documents to determine the nature of your problem.

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can... more
  2. Robert J. Hoffman

    Pro

    Contributor Level 11

    6

    Lawyers agree

    Answered . The IRS and EDD generally don't collect each other's debts, so it is likely that you have unresolved issues with both agencies. My guess is that you owe the EDD for payroll tax issues, and therefore there might be similar issues with the IRS stemming from Forms 940/941. Take Mr. Smith's advice and contact a tax practitioner.

    Robert Hoffman is a tax attorney licensed in California. The information presented here is general in nature and... more
  3. Robb Adam Longman

    Pro

    Contributor Level 13

    4

    Lawyers agree

    Answered . In some states the answer is yes, you would need to check your local rules.

  4. Richard Gordon Stack

    Contributor Level 13

    2

    Lawyers agree

    Answered . If your business is required to pay employment taxes to the EDD (which I assume it must), it must also file Forms 940 and 941 with the IRS and pay the requisite amounts of Federal employment taxes (social security and Medicare). The IRS is under no obligation to cite the statutes which make your business liable to withhold and pay over employment taxes; such obligations arise by operation of law.

    The answer to this question does not establish an attorney-client relationship. Moreover, this attorney is... more

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