16 year old California state tax bill [first contact]

[lipservice]

What is the name of your state (only U.S. law)? California.

I received a bill from 1996, California State franchise board stating that I owe them over $4,000 based on a $800 bill, the rest is interest and fees. This is the first letter I received in the 16 years. I realize the SOL is 20 years, I received money from my family estate and that may be what it is, though I already read there is no state taxes on inheritance,it may have been some taxes due, not sure.

I haven't contacted, them should I ?
They sent the letter in July, just had my mail forwarded from an old address. This was the only letter no follow ups. Two questions; Am I considered a resident if; I was transitioning from California since latter 1995.
[1995 October- February India]- California a couple days in February then-Philadelphia a few weeks then returned in March to California for a couple weeks latter March when I went to Hawaii and decided to live there. Returned to California in June for a few weeks then went to East Coast for the summer. Returned to California for a few weeks and then returned back to Hawaii in August/ September at which time is when I shipped my car ect.

Problem is other then DMV in latter of 1996 how can I prove that far back that I actually had this schedule?

If I do contact them, and they don't go for it, what are the chances to waive the interest?, as I only had one contact from them, and it was 16 years later. Really would appreciate some advice, thanks

 

[davew128]

At this point it is highly unlikely you could fight this. IIRC, you would have to pay it first and then fight to get it abated through an amendment and that has a short time frame of a year to fight. The interest is statutory and can't be waived.

 

[lipservice]

16 year old tax bill from California

Thank You for your reply.
What about the issue of not being a resident of California? Isn't that a a valid issue? As I [long winded] described that I moved to Hawaii in March? Though I have no records at this point being 16 years later, maybe with the exception of dmv latter in the year. My brother thinks at this point that it was considered a gift and I deposited it without knowing any taxes were due, and since I had no other income I didn't file. And furthermore, since I moved to Hawaii in March, I didn't think I had to. Also, are you saying that if the only contact is 16 years later, that there is no flexibility with the interest? thank you for your help

 

[davew128]

Let me make this simple.

CA believes you were a resident. The only way to fight that is file a return indicating you were NOT a resident. You can't just ignore this. You should be on the phone with FTB as soon as their offices open to get detailed information on what they did.

I will also say one more time: Interest is statutory. The FTB has no discretion to waive or reduce it. If the tax is assessed, the interest goes with it. Period.

 

[lipservice]

16 year old tax bill from California

Wow Davew... thanks for the clarity with a bit of a punch to it. I really do appreciate the facts. Now when you say file a return what do you mean? As this was sixteen years ago, and on the bill it's stated that I didn't file as I had no other earnings and was unaware that I needed to. Are you suggesting that I file now?


What proof will they require as to me not being a resident? As I detailed in my first post my transition for California starting in the latter of 1995. thanks you're so helpful

Would hiring a lawyer help me in any significant way?

 

[lipservice]

16 year old tax bill from California

Here's some interesting info I came across online on the cfb website. Does this apply? I was given a distribution from my mother's estate in 1996 in the form of [I think a gift] which was not from a California source. I don't know unequivocally but this what they're attaching my bill to. Now how to prove I wasn't a resident of California in 1996.

Nonresidents: Lump-sum distributions from a qualified
plan or annuity after December 31, 1995, are not taxable
by California.
However, lump-sum distributions, derived
from a California source, received from most nonqualified
plans after December 31, 1995, continue to be taxable by California.
Get FTB Pub. 1005 for more information

 

[lipservice]

16 year old tax bill from California

Sorry my last post was not relevant. My situation is; what I received was a Gift from my Mother's estate, and even though I had no earnings in 1996 they are asking for taxes from 16 years ago. My problem is how to prove I wasn't a resident in 1996. If I could show where my bank transactions were for everyday needs, but banks don't keep records from 16 years ago. Am I out of options? it's really unfair because it's the truth, and I don't have resources available to prove it. Any suggestions how to proceed?

 

[lipservice]

16 year old tax bill from California

Doing my research ...pulled this up on FTB website regarding abatement of interest, which is very helpful,

Request for refund
You can request that we abate interest if the account is paid or unpaid. However, if you are requesting that we abate (refund) interest that has already been paid, your request must be made within the statute of limitations for filing a claim for refund.

So Davew,it seems that the tax bill doesn't have to be paid to abate the interest.

 

[davew128]

Suggest you read the FTB's website again on the matter, and their written published criteria on it. There is no provision applicable to your circumstance.

 

[lipservice]

16 year old tax bill from California

Davew, Are you saying that you must pay your entire tax bill before you can request FTB to abate your interest?

 

[lipservice]

16 year old tax bill from California

So what you're also saying is, that even though they hadn't contacted me in 16 years that is not cause for a error in delay?

Another angle; I filed chapter 7 in Hawaii in 2004, would that wipe out CTB tax bill from 1996 ?

 

[lipservice]

16 year old tax bill from California

Should I call and set up installment plan with them until I work out my best course of action to avoid any garnishment of my accounts? Or by agreeing to the installments, do I waive my right to prove my case.

 

[lipservice]

16 year old tax bill from California

Regarding my chapter 7 discharge in Hawaii, 2004, Since I never filed my California state tax return 1996 , does that have any implication on any possible dismissal?

 

[davew128]

No, the bankruptcy doesn't wipe out a tax debt for an unfiled return.

No, just because you didn't receive correspondence for 16 years doesn't mean they weren't trying.

Suggestion: Rather than looking for loopholes on a message board, call them during normal business hours and gather relevant information on what THEY did.

 

[lipservice]

16 year old tax bill from California

Yes I will call, however from what I've been told and read, the expertise and help they offer is pretty much entry level. So I'm trying to be as prepared as possible to have a clear strategy. So as I pretty much already know, that what there sending me is a tax bill was a gift for 32,000 from my mother during their estate planning after my father passed. Does this just count as income to the FTB?