Instructions For Form De 231sp - Settlements Program Information Sheet - California Employment Development Department
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1
2SETTLEMENTS PROGRAM
A settlement is a compromise on the dollar amount
PUBLIC DISCLOSURE
of a tax liability, consistent with the reasonable
evaluation of the costs and risks associated with
CUIC Section 1236 requires a public record for any
litigation of the issue(s).
settlement agreement that forgives more than $500
(taxes and penalties). The public records are on file
California Unemployment Insurance Code (CUIC)
with EDD's Director in Sacramento, California.
Section 1236 allows the Employment Development
Department (EDD) to settle certain civil
HOW TO APPLY
employment tax disputes.
To apply for a settlement, you must submit a
The Settlements Program allows an employer the
settlement offer. The settlement offer must be in
opportunity to enter into a settlement agreement to
writing; however, there is no prescribed format. At a
avoid the cost of prolonged litigation associated
minimum, include all of the following information in
with resolving a disputed employment tax matter.
your settlement offer:
SETTLEMENTS PROCESS
•
Your EDD employer account number.
Generally, we will only consider a settlement offer
•
The specific assessment or the denial of claim
when the assessment or denial of claim for refund
for refund for which you are offering the
is under petition with the California Unemployment
settlement, along with information such as the
Insurance Appeals Board (CUIAB) or before a civil
date of assessment or denial of claim for refund,
court. If the case is still in process or involves fraud
amount of liability involved, and period covered.
and/or a criminal violation(s), the case is generally
not eligible for settlement.
•
The basis for your offer, including the amount
and terms of your offer.
When reviewing an offer, we consider the risk of
loss for the State and the cost of litigation balanced
•
An analysis of the risk of loss to the State or a
against the benefits of reaching a settlement agree-
reasonable estimate of the cost of litigation
ment. Issues of fairness, financial hardship, and the
which appears excessive and the reason why
survival of the business may be considered to
the offer should be considered.
establish a settlement amount, but cannot be used
as the sole reason for entering into a settlement
•
The name, address, and telephone number of
agreement. Upon approval of the settlement offer,
the individual authorized to negotiate your
the employer and EDD will enter into a settlement
settlement agreement, if applicable.
agreement. Some settlement agreements are
subject to approval by an administrative law judge,
the CUIAB, and/or the Attorney General.
DE 231SP Rev. 1 (8-04) (INTERNET)
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