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California Payroll Tax Problems and the EDD

Part of being a business owner is filing and paying payroll taxes for your employees. In California, the Employment Development Department, or EDD, administers these taxes. In addition to receiving tax filings and payments, the EDD also identifies and investigates potential infractions of tax law. What do you do if you develop tax problems and find yourself on the receiving end of an audit?
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Do You Need California Sales Tax Defense?

The Board of Equalization is the California public organization that administers the state sales and use tax law and regulations. The BOE also conducts audits, collects unpaid California state sales and use taxes, and administers the state property tax. There are presumptions of the tax code that the BOE follows in its operation and decision-making process. The BOE presumes: All sales are...
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How FTB Tax Liens Affect Your Credit Report

As if taxes were not complicated and frightening enough, the federal and state taxing authorities have a variety of devices in their arsenal to compel payment and stave off penalties. Tax liens, one of the most common of those devices, can cause trouble not just with your property and bank accounts, but with your credit score and ability to obtain lines of credit.
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Federal Payroll Tax: What the IRS Expects from Business Owners

If you have employees, you are liable for federal payroll taxes. Some taxes are withheld from your employee’s wages, some you must pay yourself. The Internal Revenue Service, or IRS, administers payroll taxes as part of its responsibilities. Remaining in compliance means understanding how and when payroll taxes are calculated, filed, and paid.
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Why Do I Owe State Taxes?

California is one of 43 states that collects state income taxes and currently has the highest state income tax rate in the U.S. at 13.3%. It comes in fourth for combined income and sales tax rates at 11.2%, behind New York, New Jersey, and Connecticut. We are here to explore the common reasons for higher state taxes in California and ways to ease the bite they take from your earnings and...
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What is the IRS Statute of Limitations for an Audit?

IRS audits operate under a statute of limitations, meaning the IRS is barred from auditing returns after a set period of time. The limitation period typically begins at a particular time in the process and may be extended according to particular circumstances. Why do these limitations exist and how do they apply to various audit situations?
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Explanation and Penalties of Sales Tax Fraud in California

Sales tax is added to almost every piece of merchandise sold in the State of California. It adds to the city, county, and state coffers to help pay for services everyone enjoys. Sales tax can also be a lure into illegal activity. Sometimes it is not intentional. A retailer makes an error that can be attributed to complexity of the tax code. This is merely negligence. Other times, it is very...
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All About California Self-Employment Tax

When you work for someone else, your employer takes care of tax withholdings for you.  When you work for yourself, you are responsible for the withholding and payment of these same taxes. In California, you are not just responsible for federal taxes; you are also required to pay state employment tax. Here is a rundown of the things you need to know to stay out of trouble with the IRS and the ...
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What Are the California Payroll Tax Penalties If I Don't Pay?

As an employer, you are obliged to file payroll tax returns and pay payroll taxes. While the obligation can feel burdensome, especially when times are tough and cash flow is slow, this is obligation that you must never delay.  Substantial penalties may accrue to any employer who doesn’t file correctly, leaving you in a far worse situation than before.
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The BOE and California Tax Liens

The consequences of falling behind on your taxes are difficult for anyone, but when we are talking about businesses, sales taxes, and California’s Board of Equalization (BOE), the results can be devastating. The BOE is particularly aggressive about investigating and pursuing unpaid sales taxes, and will often demand immediate payment of any liability, no matter what other types of financial...
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