ASK THE EDD ATTORNEY – HOW TO SUCCESSFULLY DEAL WITH AN EDD TAX COLLECTOR
By Robert S. Schriebman
November 19, 2014
Your battle with the EDD is over. You may have agreed to an initial assessment, reached a settlement of your matter, or have received an adverse decision from an Administrative Law Judge. Regardless of how your assessment has been determined, it is time to pay it. If you have the funds the best thing to do is to pay the assessment and get it out of your life. On the other hand, you may not have the ability to fully pay. You need more time. You would like to have an installment payment agreement. You may have been assessed late filing and or late payment penalties that you would like to have abated in full due to reasonable cause. On the other hand, you may have defaulted on the time to file a petition and would like to have a chance for a new audit with hopefully better results.
In this article I will give you some thoughts on how to successfully work with your assigned EDD tax collector to achieve a payment agreement you can live with without the fear of enforced collection such as an ongoing bank account levy.
When you owe the EDD your case will eventually be assigned to a tax collector. The tax collector can work with you or against you. Success often depends upon acting in good faith, keeping your word, and effective communication in dealing with your assigned collector.
I have been dealing with IRS, EDD, FTB, and SBE collectors for decades. I have authored over 20 books on dealing with tax procedure with a heavy emphasis on California and IRS tax collection practice and procedures. Over the years I have written many articles on this subject, many of which can be found on this web site.
I have learned one true thing when dealing with any tax collector. To me, a tax collector, doing his or her job according to law, is the most powerful person on earth! No court in the land, including the U.S. Supreme Court, can stop a collector from doing his or her job if that collector is acting within the law. So, the first lesson to learn is not to play games with anyone having this much power.
The EDD tax collector has truly awesome powers. Some are good and some are bad. Here are a few examples:
· Bad. Record a Notice of State Tax Lien.
· Good. Allow an audit reconsideration
· Bad. Levy on bank accounts and garnish wages.
· Good. Abate delinquency penalties.
· Bad. Put a “keeper” in your business to collect every dollar that comes in.
· Good. Allow a workable installment payment arrangement.
· Bad. Consider assessing corporate-level assessments against you personally as a responsible person pursuant to CUIC § 1735.
· Good. Suspend collection due to economic or other hardship.
Over the years I have developed “Robert’s Rules” for successful results when you have to deal with any tax collector be it an IRS or and EDD collector:
1. The key to success when dealing with any phase of the EDD’s collection process is good communication.
2. Be aware of the truly awesome powers of your assigned EDD tax collector.
3. Be prepared. Go to the EDD web site, print out the appropriate financial statement, and complete it honestly and truthfully. Have it ready to present to the collector together with your last six months of bank statements.
4. If appropriate, make use of the audit reconsideration process whenever you can.
5. Use your initial meeting (telephone conference) with your EDD collector to attempt to abate delinquency penalties. If you do not ask . . . you do not get.
6. EDD tax collectors love money. That is what their job is all about. If you cannot pay the EDD in full offer to pay whatever you can. Make an initial good-faith upfront payment.
7. The best way to get concessions from your assigned EDD collector is to show good faith in truly wanting to resolve your matter. Actions speak louder than words.
8. Remember this motto, “If you can’t do the best, do the best you can.”
An EDD attorney, Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States.
As a trusted EDD lawyer, Robert S. Schriebman has successfully dedicated more than 40 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments.
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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