Every year the Small Business and Entrepreneurship Council releases a list that ranks each state based on the friendliness of its tax system to small businesses. This year, Texas was ranked number one and our very own California came in dead last.
The California Franchise Tax Board recently made a decision to retroactively collect taxes that the state's business owners and investors had been told they would not be expected to pay. It started 20 years ago when the state offered a capital gains tax incentive to motivate entrepreneurs and investors to set up in California.
Virtually everyone must pay some sort of taxes. For a sole proprietor, small business owner or other business with employees, one of the types of taxes which must be withheld and paid for employees is the payroll tax. The Internal Revenue Service does not look favorably upon unpaid payroll taxes. Or does it?