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California statute of limitaions on unpaid income taxes

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Snipes5

Senior Member
Yes, I am an EA. However, I am not in California, and am not familiar enough with the ins and outs of the California tax code. You need someone who deals with the FTB regularly.

Snipes
 

KDBRitton

Junior Member
Still waiting

I posted this question earlier, but no one has responded. Does ANYONE know WHY the California FTB is telling taxpayers that there is no statute of limitations for collecting unpaid but filed taxes ????

AB 2414 says they only have 10 years from the date the lien or judgment (if there is one) was filed to collect the tax due. They can renew the lien and /or judgment for another ten years but it must be renewed before the original 10 years expires. AB 2414 was passed in 2002.

Has anyone been successful challenging the FTB that the time limit for collecting the unpaid taxes has expired?
 

Snipes5

Senior Member
They are probably telling people that because if you shake the tree enough, some money is bound to fall out, and the state is broke.

If they are challenging you for unpaid, but filed taxes, get yourself some professional assistance, and take care of it. It doesn't matter what they are doing to everyone else.

Snipes
 

Faster99

Registered User
California Tax Amnesy

I got the California Amnesty notice for 1986-87 taxes they say I owe. I have been living in Ohio for 8 years. What collection options do they have for out-of-state people versus California residents?
 

idunno78

Junior Member
Just how long do they keep docs?

My Grandmother just received an amnesty app from CA. She has lived in AR for 20+ years. I am trying to help her with this problem. The years in question are 1967 through 1971, and the FTB says that she did file, and pay, but filed incorrectly, and the penalties for 38 years are quite large. Does the FTB actually have a case? She made an effort to file, and thinks that she did so correctly, but cannot prove anything, as she did not keep the records for all those years. They say that the SOL does not exist. Is that true in a case like this?
 

caltaxvictim

Junior Member
Utterly Ill

Though completely thrilled that I am not the only one who feels victimized by the efforts to bully me into paying 15 year old taxes that were NEVER mentioned before, I am utterly ill to see the State of California doing this to people.

Do you realize that most, if not all, of us are no longer living in California and these taxes are so old for us that files would have been long since lost/destroyed/removed?

My question is this though..what is the criminal penalty that I keep seeing referred to but never elaborated? Also, why don't they have to prove that I never filed in 1990?????

Thanks!
 

LaserJoc

Junior Member
Finding an EA for Washington State

bewildered9 said:
Snipes: looks like I need professional help.

Are you and EA? If so, how can I contact you?

Thanks in advance....

How can I find an EA for Washington State?
 

Snipes5

Senior Member
Send me a private message indicating what you need the EA for. I am located in WA and may be able to assist you.

Snipes
 

Orebell

Member
Sharing my two cents about California

I would like to share my experience in dealing with the California FTB. Actually this is not my personal experience but it is a situation I am dealing with for a elderly friend of mine.

My friend got this amnesty notice from 1988 and 1989. They say he owes about $12,000. So I called the state for him and asked them to tell me where his income came from.

For tax year 1988, they say my friend had a license with the Bureau of Automotive Repair. And because he supposedly had this license and did not file a tax return, they have estimated his income based on the industry average and taxed him accordingly. The tax, penalties and interest total about $11,000. Now here is the weird part. They show taxes withheld of like $1200 and a payment of $1800. Now, if taxes were withheld, they are withheld usually by a company who has to report that. Yet, they have estimated his income based on an industry average. There is no way taxes can be withheld and no company has been listed as reporting doing the withholding. The second weird thing is they show my friend making a payment of appx $1800. While my friend cannot confirm or deny making a payment, I am 99% he did not.

I told the state of CA that I think they have a mistake. I think they have the wrong person. I was told quite clearly that if I wanted the numbers changed to file the tax return. So file I did. I filled out the tax return showing $0 income. Actually he did have some interest income so I did show that but the bottom line is I filled out the return and essentially his income is zero and it shows that they owe him $3000. I don't expect to get the $3000, but that is what was filed.

His situation from 1989 is legit. I filed a tax return for him and he does owe. I am hoping that the 1988 over payement even though they will not sent the cash I am sure, perhaps they will apply it to 1989 and cancel it out so essentially my friend will owe nothing.

I personally agree with a lot of the statements that I have seen here in this thread that CA is having financial problems and this is an attempt to collect some additional revenue. There are two things that come to mind on this. One is that what has the FTB been doing all these years with these supposed non filed tax returns? I say too many lunch breaks and government holidays. The second I have with all this is I think what the state is doing is criminal. Something seriously needs to be done about this. If anyone knows of any lawyer or activist groups that are planning on fighting this, please let me know. I live out of state but what I see happening is just downright wrong.
 

KimKass

Junior Member
CA tax amnesty for deceased person?

In California, my very elderly grandmother died in December. We've checked her tax papers and believe she never declare the income from a rental property, also in California. She had a bookkeeper, but we assume she never told her bookkeeper about the income. The rent charged was way below market, so my grandma's income would go from 12k (no rental declared) to about 20k in 2002 for example: the actual additional taxes owed would be relatively low, we think.

In reading throught the FTB tax amnesty FAQs and pages, I see nothing about what to do in the case of a deceased taxpayer. The deadline is tomorrow (April 4). The FTB says that an accountant can sign for the taxpayer *if* a "completed Power of Attorney Declaration (FTB 3520)" is on file. How would this work for a dead person-- the estate signs for the deceased? The bookkeeper had sent the taxes in electronically for recent years.

Also, the estate is in probate and an administrator isn't appointed yet, so who is legally able to sign for this-- the court?

The FTB also requires that the taxpayer fill out and pay all 2005-2006 taxes. Does this mean the estate just has to file the forms, but saying "deceased no income"? Thanks for any quick help.
 
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