Articles Posted in EDD

California’s tax environment is notoriously complex, with businesses often facing a gauntlet of issues from multiple state agencies like the Franchise Tax Board (FTB), the California Department of Tax and Fee Administration (CDTFA), and the Employment Development Department (EDD). Navigating these challenges requires not just a deep understanding of tax law but also strategic representation. Here’s an in-depth look at the top five tax problems businesses encounter with these agencies and how Mike Habib, EA, can be your guide to resolution.
1. FTB – Unfiled Business Tax Returns
The Problem: Many business owners, particularly those new to California or overwhelmed by business operations, might neglect filing their required tax returns. This leads to a cascade of penalties, interest, and potential legal actions by the FTB.
Detailed Scenario: Consider a tech startup that, during its growth phase, failed to file its state income tax returns for three consecutive years. The accumulation of back taxes, penalties, and interest has now become a significant liability, potentially hampering the company’s ability to secure investments or loans.
How Mike Habib Helps:
  • Reconstruction and Filing: Mike assists in reconstructing financial records to accurately prepare and file all missing returns. He ensures compliance with California’s specific tax laws, like the requirement for businesses to file even if they have no income or owe no tax.
  • Negotiating Penalties: With his expertise, Mike can negotiate with the FTB for penalty abatement, especially if the non-filing was due to reasonable cause like financial hardship or misinformation.
  • Offer in Compromise: For businesses with substantial debt but limited ability to pay, Mike evaluates eligibility for an Offer in Compromise with the FTB, potentially settling the liability for less than the full amount owed.
  • Payment Plans: He establishes manageable payment plans, helping businesses keep their doors open while resolving their tax liabilities.

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Running a business in Los Angeles comes with its fair share of challenges, and one of the most daunting can be navigating the complexities of California’s Employment Development Department (EDD) payroll tax requirements. For business taxpayers facing EDD employment payroll tax controversies, the stakes are high. Unpaid back taxes, EDD audits, penalties, and unresolved tax issues can lead to financial strain, legal complications, and even the risk of business closure. Fortunately, the Los Angeles-based tax firm of Mike Habib, EA specializes in helping business taxpayers resolve their EDD tax matters efficiently and effectively.

In this article, we’ll explore how Mike Habib, EA can assist business taxpayers in resolving EDD employment payroll tax controversies, including unpaid back tax balances, EDD tax audit representation, penalty abatement, and other unresolved EDD tax issues. Whether you’re a small business owner or a larger employer, understanding how a skilled tax professional can advocate for you is the first step toward resolving your tax challenges and protecting your business.


Understanding EDD Employment Payroll Tax Controversies

EDD audit representation

Tax audits can be a daunting experience for any taxpayer, and when it comes to the Employment Development Department (EDD) audits, the stakes can be particularly high. The EDD is responsible for administering unemployment and disability insurance, payroll tax collection, and job training/workforce services in California. An EDD tax audit focuses on ensuring that businesses comply with CA state payroll tax laws, which can be complex and multifaceted. This article will explore the intricacies of EDD tax audits and the significant advantages of having professional representation during the process.

We handle all of the intricate details of the audit process and negotiation to free you up to do what you do best – run your business. Get a free case evaluation today at 877-788-2937.

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