Ask The California Employment Tax And Payroll Tax Attorney – Getting Documentation And Information From The EDD

By Robert S. Schriebman

2024

Introduction

This article will give you some helpful hints on what to ask for and how to ask for documentation and information from the EDD after the completion of the audit and the issuance of the Notice of Assessment and filing of the petition with the CUIAB

The EDD is not bashful when it comes to obtaining documentation and information from the employer. It is the auditor’s job to obtain as much information from the employer as possible, whether or not the requested documentation and information is specifically relevant to the audit. One thing EDD auditors know for certain – it is very easy to ask. It is quite another task to make the EDD cooperate in furnishing the employer with what is necessary to attack any EDD assessment.

Most employers who elect to do it on their own never think of obtaining documentation and information from the EDD. Unfortunately, many professional tax representatives are unaware of how to go about obtaining audit-related records, etc. from the EDD.

The typical audit starts by the EDD requesting information and documentation as follows:

• The Pre-Audit Questionnaire. This is a two-page form requesting information including where the employer banks, the account number, and who signs the checks. The questionnaire also asks for information relating to number of employees, and the nature and extent of the use of independent contractors.
• The Entrance Interview. This is a person-to-person interview that can go on for several hours. During this interview the EDD tries to ask anything and everything about the nature and extent of your business.
• The formal document request. This form accompanies the initial audit contact letter and seeks documentation including bank statements, federal tax returns, payroll tax returns both IRS and EDD, business license and many more items many of which are not all that relevant to the audit process.

This is just the beginning. After the auditor reviews your responses to the above demands, the auditor will expand the search for documentation and information requesting that the employer answers extensive questionnaires, prepare spreadsheets, and furnish third-party contact information.

Nothing is mentioned in the EDD’s examination process about turning over documentation and information to the employer after the completion of the audit and the issuance of a Notice of Assessment. How does the employer obtain documentation and information compiled by the EDD as a result of the audit?

Getting Your Audit Documents From the EDD

You have a right to obtain information and documentation from the EDD. The California Public Records Act. is set forth in Government Code § 11507.6. et. seq. This provision provides a broad frame of reference for obtaining documents, records, and other information from the State of California including, of course, the EDD. No special language or form is required. Your request can be informal but is always a good idea to site the Government Code as your authority. When it comes to an EDD assessment, here are a few items that you have a right to demand from the EDD:

• The entire audit files for the employer.
• The Audit Report(s)
• All final Notices of Assessment.
• Audit Report Interview Sheets and Auditor Comments
• Pre-Assessment Conference Reports

These types of requests should be made after a timely petition has been filed with the CUIAB. The request should be sent to the auditor by FAX, Certified mail, Fed Ex or equivalent. Sometimes the auditor fails to respond to your initial request. After allowing at least 30 days for the EDD to respond, a second request should be sent to the auditor or to the auditor’s immediate supervisor.

The EDD’s process of gathering, copying, and sending the request through the employer is free.

Conclusion

The employer has an absolute right to obtain documentation and information from the EDD free of charge. Sometimes it can take more than one request, but I have never experienced the EDD’s refusal to cooperate. This is usually sent to the employer via messenger service.

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Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States. He has successfully dedicated more than 50 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments. Mr. Schriebman is in private practice. He is not affiliated in any way with the EDD, and he is not employed by the EDD or any other agency of the State of California.

Robert Schriebman has written the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House in addition to the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.

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