The Employment Development Department (EDD) has identified an error which resulted in the overcharging of penalties, and associated interest, on a small number of employer accounts.

When employers fail to file the required Annual Reconciliation Statement (Form DE 7), the EDD uses available records to estimate the amount of taxes due, and penalties and interest are added to the total amount owed. The EDD has found that a technical calculation error occurred in adjusting the penalty for some accounts when the requested DE 7 was later received and processed.

Affected employers will receive a letter informing them of the error, correction, and refund or credit of amounts overcharged. Refunds or credits will include any applicable interest accrued on overcharged amounts and will occur within 30 days of the date of the letter.

Employers who do not receive a letter but meet all of the following criteria may also file a claim by sending a letter with the required documentation to the address below.

• The employer did not file a timely Annual Reconciliation Statement (DE 7) for any calendar year from 1995 to 2004.
• The EDD assessed the employer for failure to file an Annual Reconciliation Statement (DE 7) that the employer subsequently filed.
• The employer paid the EDD estimated assessment.

• A copy of the filed Annual Reconciliation Statement (DE 7) for each affected year.
• Proof of payment.

Claims should be mailed to:
Employment Development Department
P.O. Box 826215, MIC 3A-193
Sacramento, CA 94230-6215