If you own a small business or owe federal taxes, it is highly likely that you have state tax issues as well. Believe it or not, most state tax bureaus are more aggressive than the IRS. We have extensive experience dealing with state bureaus across the United States – particularly in California and New York – and can help you reach the best possible resolution as to your state tax issues.
Help with California Tax Matters
In California, there are three distinct bureaus charged with the assessment and collection of state taxes. The Franchise Tax Board is most commonly associated with income taxes, and while they operate in a manner that is similar to the IRS, the FTB is much more aggressive and much less lenient. When discussing payment arrangements and Offers in Compromise, the State of California considers your current assets and ability to pay, but adds the consideration of future earning potential. Since the Franchise Tax Board has 20 years to collect an assessed tax balance, they guess at whether your income might increase over the next two decades and frequently reject settlement offers on this basis. Our office has a great deal of experience with the Franchise Tax Board and will do everything possible to obtain the best possible resolution in your case.
The Franchise Tax Board is also responsible for collecting “minimum franchise tax” fees of $800 per year, per incorporated business. Many people first become aware of the minimum franchise tax fee when they receive a bill for a company closed long ago – a jarring and frustrating experience for any former business owner. We can help negotiate with the Franchise Tax Board or, in some cases, advise on whether you can even be held personally liable for the taxes, penalties and interest owed by a defunct corporation.
Collecting Sales Tax in California
The Board of Equalization is primarily responsible for collecting sales & use taxes owed to the State of California. Most issues with the BOE arise from sales tax audits that result in large balances, leading the Board of Equalization to revoke your Seller’s Permit and force you to close your doors. Our office can help review or determine audit results and negotiate a payment plan if necessary.
Finally, the Employment Development Department collects taxes related to employee payroll. Many issues involving the EDD are caused by incorrect or unfiled returns, and we can help prepare the correct documentation to solve your problems in many cases. Even if the tax owed is valid, our office can contact the EDD and negotiate the best possible repayment terms, or settle the debt in limited circumstances. Please contact our office to discuss your options with the EDD in greater detail.
State Driver’s License Holds
A few states (particularly New York and Maryland) have taken to placing holds of vehicle registration and license renewal if the driver has unpaid tax balances due. These laws are relatively new and have led to huge collection bills stretching back 20 years or more. We have extensive experience with driver’s license holds – the release of which typically requires all missing returns to be filed plus the establishment of a repayment plan. Please contact us today to begin the process of releasing the hold against your driver’s license.