Client came to us with over $190k EDD payroll tax liability already in collections with the EDD threatening to levy the client’s personal bank accounts and lien the client’s personal property. Another business, a C Corporation, not the Client’s and he did not work there then and during the periods at issue, was under EDD audit. The EDD auditor thought it was our client, even claiming to speak with him, that employed over six employees and did not report and pay payroll taxes. Client did not know of the audit; was never visited by the EDD agents; and never received notices. EDD issued a Notice of Assessment in the Client’s name, supposedly operating as a sole proprietor, and mailed the notice to the business address of the original business subject to the audit. The client had 30 days to appeal the proposed assessment, but the Client did not know there was a notice until nine months later. Thus, 240 days (eight months) had passed the deadline to appeal. Our office petitioned for reassessment with the Office of the Chief Administrative Law Judge and California Unemployment Insurance Appeals Board acknowledging the petition was untimely by 8 months but arguing the client was not given proper notice, never was contacted during audit, and not the subject to the audit. Untimely petitions are rarely successful in getting the ultimate arbiter to client’s petition for reassessment. However, the Administrative Law Judge (“ALJ”) heard our oral arguments and granted in the client’s favor citing lack of proper service by the EDD. The $190k debt is now out of collections as the client has now officially disputed the proposed assessment because the ALJ determined the untimely petition was deemed timely – as if the petition was filed within 30 days from assessment notice.
Start your consultation with our tax team
As Soon As Possible
As Soon As Possible
888-TAX-DEAL
“TAX-DEAL”: 829-3325
“TAX-DEAL”: 829-3325
