California State Government Taxing Me On Negative Income

What is the name of your state? California

I hope someone could give me a little advice. In the year
2000, I did not file any income tax statement because I had negative income in the year 2000 of about $8,000 due to stock losses. I had no other income whatsoever. That point is not even debatable as I clearly sent them financial statements 6 months ago proving this. Yet the California state government is so desperate for funds that they are taxing me because I did not report those losses to them.

It makes no sense in the world to me why I should report negative income and losses to them and pay penalties on negative income that I didn't report. The object and intent of tax law is to tax those people who make money according to their guideline of tax tables. It should not be in any way whatsoever to tax people for not reporting negative income to them. No, no no. The California state government is
now adding big penalties every month because I have not paid the taxes I don't owe them.

I have tried calling them to try and straighten out the matter but they insist that I owe them penalties for not reporting my negative income to them. No matter what they say, it doesn't make any sense to me and it never will.

Since you have already made up your mind ("No matter what they say, it doesn't make any sense to me and it never will"), why did you post??

I posted because I want to know the legal position on this as well as legal precedent in cases involving such incredibly stupid and ridiculous taxes. Surely someone somewhere must have contested this in a courtroom.

JETX said:

Since you have already made up your mind ("No matter what they say, it doesn't make any sense to me and it never will"), why did you post??

Click to expand...

'Surely someone somewhere must have contested this in a courtroom."
*** Yep, and lost it just as you would.

The issue here is NOT how much you made or didn't make. The REAL issue here is that you failed or refused to file a timely return.... even one showing no income. That failure to file has caused you to pay penalties and fees. And your continued refusal, is now apparently adding interest to your penalties and fees.

You are right that that is the issue that I didn't file the tax return but it has always been my contention that before there can be a lawful requirement for you to file a return, you must be found liable or responsible to complete the return for the particular type of tax the government is attempting to collect. If there is no income or tax to collect then there should not be any reason to file. That is how I interpret tax law.

Your interpretation is incorrect. You are applying the filing requirement to net income. The tax code applies those requirements to *gross* income. Thus, even if you have a net loss, you must file a return if you sell $45,000 of stocks or the IRS will assess taxes based on $45,000 of profit. Quit complaining & file the tax returns. The same is true if you have a rental house -- your either file a return showing a loss or you pay taxes on the gross rent received.

Abezon is correct.

You DID have income in that year, didn't you?? You also had losses (or expenses) that year, correct??
How is the taxing authority supposed to 'devine' that your losses exceeded your income.... without your filing??