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

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.

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Attorney answers 4


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


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 only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mr. Smith is licensed to practice law throughout the state of California with offices in Los Angeles County. He is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court. His phone number is 323-292-4116 or his email address is


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 is not intended as a substitute for legal advice. This posting does not create any attorney-client relationship with the author. For competent advice about your particular situation, consult your own attorney.


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 licensed to practiced law ONLY in the State of California. Answers to questions from users in other jurisdictions or states are meant to provide only general information. Users should contact a local attorney in their jurisdiction or state to address their specific tax issue.