Legal Question in Employment Law in California

I was a 50 percent partner in a California corporation that went out of business 1 year ago. Yesterday I received a document from the california labor board notifying me of an award for a previous employee for payment of back wages. It lists the defendant specifically as the corporation. My concern is the last page of the document titled " notice of payment due" which states " all unsatisfied judgements will be referred to the california franchise board for collection pursuant to the provisions of section 19290 of the revenue and taxation code. Does this pertain only to the defunct corporation or can the franchise tax board attach any tax refunds due to me personally for state income tax witholding?


Asked on 10/01/10, 9:34 am

1 Answer from Attorneys

The FTB cannot attach your personal tax refunds without further proceedings to establish you as personally liable for the corporate debt. Whether they can do that or not depends on the details of how you went out of business and what happened to any assets of the corporation when it went out of business.

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Answered on 10/06/10, 11:04 am


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