Business, Payroll, and Sales Tax Problems
Separate each obligation and address current compliance while resolving older balances.
Map the Accounts
Create a list of federal business taxes, California income or franchise tax, EDD payroll tax, and CDTFA sales or use tax. Record the entity, account number, reporting period, return status, and balance for each. Different taxes may involve different agencies and responsible people.
Bring the Records Together
Gather payroll registers, filed wage reports and returns, tax-deposit confirmations, sales records, bank statements, and agency notices. Compare amounts withheld or collected with amounts actually remitted.
Do Not Treat Withheld Taxes as Operating Cash
Unpaid trust fund taxes can expose responsible individuals to personal liability under federal rules. A proposed personal assessment or an IRS interview about responsibility merits prompt advice from a qualified tax professional.
EDD Payment Options
EDD permits eligible employers to request a payroll tax payment plan through e-Services for Business. Missing returns or wage reports must be addressed. If online eligibility is unavailable, EDD lists a representative-assisted route.
CDTFA Payment Options
CDTFA’s payment-plan process requires all required returns and a past-due billed balance. Prepare the latest account statement or payment voucher and payment information. Some requests receive further review. Follow current filing and payment obligations while the older debt is being resolved.
When to Bring in a Professional
Seek advice for threatened levies, personal-liability notices, an audit dispute, business closure, or conflicting obligations across agencies. Request a written scope that identifies the entity, tax type, periods, deliverables, and who will represent you.
Official Sources
IRS: Employment Taxes and the Trust Fund Recovery Penaltywww.irs.govEDD: Online Payroll Tax Payment Planedd.ca.govCDTFA: Online Payment Planscdtfa.ca.govIRS: Choosing a Tax Professionalwww.irs.govGeneral education, not a case-specific tax or legal determination. Agency instructions and the deadlines on your own notice control. Keep sensitive records in your secure files.