EDD is asking for $150K for employment taxes for a business I had during 1986-1994.

Asked over 1 year ago - Fresno, CA

That business was auto repair and a sole proprietorship and it is out of business since Jan 1995 when I received a Chapter 7 discharge.

In the year 2000, I started a new computer business (a C corporation), 5 years after the auto repair business went under. EDD has not contacted me for at least 10 years, then out of the blue I get this bill for $150K + a message to call them to discuss my options. I understand that employment taxes are not dischargeable to me personally. So I agree that EDD can EWOT and garnish my wages from my corporation or levy my personal bank account, but can they also levy the C corporation bank account? At this time I am the sole signer on the corporation bank account and the sole stockholder.

Attorney answers (3)

  1. Gary Stephen Brown

    Contributor Level 10

    3

    Lawyers agree

    Answered . You need a lawyer. The laws about these taxes and time limits are technical.

    The advice provided is in good faith but not a guaranty of accuracy under all circumstances.
  2. Jacques Tushinsky-Fox

    Contributor Level 12

    2

    Lawyers agree

    Answered . You absolutely need to hire a lawyer. This is a very complex issue and you are facing considerable penalties.

  3. Lori Jeanne Costanzo

    Contributor Level 11

    2

    Lawyers agree

    Answered . Agreed - you must use an attorney. You may be able to use the same attorney (assuming you had one) who set up the corp and/or call your accountant who presumably helps you file taxes. You should also contact the service you use for payroll as they may also be helpful, if you are being asked for payroll taxes that were not paid.

    Regardless, you should seek counsel asap.

    This is my opinion and should not be construed as legal advise for your specific case as there are many more facts... more

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