top | item 31196667

(no title)

aquark | 3 years ago

Any idea how CA handles (small) foreign companies hiring contractors in CA?

Assuming they did decide to quibble about the classification what can they actually do to an entity that has no legal existence in the US?

discuss

order

hnburnsy|3 years ago

They probably only go after those in the US as they can garnish bank accounts at banks that they can reach as they currently do to Arizona businesses they claimed were doing business in California...

"Making matters worse, if California’s tax assessments are not paid voluntarily, California frequently further tramples on the sovereignty of other states by issuing orders to interstate banks, demanding that they transfer funds in Arizona-based accounts for back payment. Those seizure orders threaten the banks that, if they do not transfer the funds, California will take the taxes and penalties owed from the banks instead. Not surprisingly, the banks almost uniformly consent to California’s strong-arm tactics.

Exhibit G in the filing provides an example where California demanded that Wells Fargo not only transfer the $800 tax, but also a $200 “demand penalty,” a $432 “late filing penalty,” a $79 “filing enforcement fee,” and $63.40 in interest, for a “Total Tax, Penalties, Interest and Fees” of $1574.40."

https://www.azag.gov/press-release/arizona-attorney-generals...

e40|3 years ago

Pretty sure @hnburnsy is right. They're not going to spend the resources to track down non-US entities, I would bet a fair amount of money.