I have a CA S corporation, Can EDD hold me personally liable to a tax assement?

Question

The Employment Developement Department of california has threaten me with a tax assement and I would like to know if I can be personally held liable for it. In other words if I don't pay it and they send it to collections could that be reported on my personal credit report?

Answer 1

Yes, definitely.

Answer 2

Yes they can and will.  The relevant law is Section 1735 of the California Unemployment Insurance Code.  You also be held liable for unpaid sales tax and federal withholding taxes.  I handle these kinds of problems routinely with my clients.  You can contact me through my profile if you need additional information.