State sales tax cases are serious. Ignorance of tax laws can result in the assessment of large state sales taxes, penalties and interest against you personally. This means that the state law considers that you have stolen the money by your failure to pay such sales taxes to the appropriate agency.
Therefore, state agencies have extensive powers to recover this money from your business or corporation through the seizure of assets and liquidation of your business. In California, the State Board of Equalization (SBE) has the power to recover a business’s unpaid sales taxes personally and directly from the owners, officers and even the company employees, when certain requirements are met.
If your business was issued a sales tax audit letter or if your business was assessed sales and use taxes, you should immediately contact a tax professional who is positioned to represent clients facing sales and use tax audits throughout California. Our services include simple audit consultations before and during an audit and actual field audit work, we are equipped to negotiate payment of the outstanding debt through several available options — tailored to meet your business’s financial needs.
State Employment/Payroll Taxes And State Taxes
If you are behind in federal payroll taxes, you are probably also behind in the payment of state payroll taxes.
Situations and circumstances can overwhelm taxpayers, especially in small or medium size businesses. Good intentions cause disastrous consequences — “We know that we cannot pay the payroll taxes this month, because we must pay necessary costs business, but we tell ourselves that we will double up next quarter.”
If you are stealing from the government, it will close your business. It will move quickly to prosecute you to the fullest extent of the law, by assessing you personally for all of the taxes which your company did not pay.
In California, the Employment Development Department (EDD) has the power to recover a business’s unpaid payroll taxes personally and directly from the owners, officers and even the company employees, when certain requirements are met.
Contact the tax attorneys at David Lee Rice, A Professional Law Corporation, immediately at 310-517-8600 for a consultation if your company is experiencing state sales tax or payroll tax problems. Any information you provide to the state tax agency can and will be used against you to assess additional taxes. Time is critical and very limited. There are usually several options for dealing with sales tax and payroll tax liabilities, but you must take action now to limit your liability.