What is the name of your state? CA
OK here is the situation. I am helping out a friend and have been pretty successful so far both with the IRS and the State of Cal. In a nushell, my friend has for at least the last 20 years has not filed any tax return. I am trying to resolve an issue with the state related to 1989 taxes.
My friend owed $1560 in taxes and he paid in $1300 via his employment wages. His balance owing was $260. The state has imposed various penalties which I do not disagree with. However, the total interest charge is $1700+. What I cannot tell from the statement sent by the state is what they are charging interest on. Are they charging on the $260 or are they adding all the penalties plus the tax due and charging interest on that.
I have requested from the state that they explain to me how they compute the interest and a year by year breakdown of the interest charged. I know it has been a lot of years, but charging a man over $1700 in interest for $260 owed seems really extreme to me. So I guess my question is does anyone know how they would compute interest. Also, is there any statute on how much interest they can charge or they can keep charging until the bill is paid?
One more issue. Some of you may be aware that the state of California has implemented this amnesty program. Well, my friends tax return for this year was not completed in time to be under the amnesty program. So, as promised the state has imposed a 50% amnesty interest penalty of $880. Personally I think it is criminal for them to do that, but that is a whole different story. I have added up the penalties and interest every which way to figure out where they get $880 and I cannot figure out what they are computing it on and I cannot figure it out. Again, I have asked the state for relief of this penalty as well as an explanation of how they compute their numbers and to date I have not got an answer. My question is does anyone know how they are computing this insane 50% penalty and if there is any chance of mercy on it.
In a nutshell, I started off with my friend owing $16,000 ($4,500 of which they already siezed) in CA state taxes. I was able to get that $16,000 reduced to $3,200 owing meaning he got $1300 of the previous $4500 collected back. All in all, I think I have won the war with the state of CA. Some people might say leave it alone and be happy.
I say if I would have just been happy in helping my friend get his money back and straighten out his affairs, most likely I would have given up a long time ago. My goal is I would like to see another $1000 to $1500 back from the state. I am not saying they cannot collect interest but $1700 on $260 is insane. And come on, 50% on top of that, the mafia does not even do that.
I would ask this. I am looking for some help. If you feel like you want to respond in some negative way, don't even bother. I want solid advice that I can use. Maybe I have overlooked something in all this.
OK here is the situation. I am helping out a friend and have been pretty successful so far both with the IRS and the State of Cal. In a nushell, my friend has for at least the last 20 years has not filed any tax return. I am trying to resolve an issue with the state related to 1989 taxes.
My friend owed $1560 in taxes and he paid in $1300 via his employment wages. His balance owing was $260. The state has imposed various penalties which I do not disagree with. However, the total interest charge is $1700+. What I cannot tell from the statement sent by the state is what they are charging interest on. Are they charging on the $260 or are they adding all the penalties plus the tax due and charging interest on that.
I have requested from the state that they explain to me how they compute the interest and a year by year breakdown of the interest charged. I know it has been a lot of years, but charging a man over $1700 in interest for $260 owed seems really extreme to me. So I guess my question is does anyone know how they would compute interest. Also, is there any statute on how much interest they can charge or they can keep charging until the bill is paid?
One more issue. Some of you may be aware that the state of California has implemented this amnesty program. Well, my friends tax return for this year was not completed in time to be under the amnesty program. So, as promised the state has imposed a 50% amnesty interest penalty of $880. Personally I think it is criminal for them to do that, but that is a whole different story. I have added up the penalties and interest every which way to figure out where they get $880 and I cannot figure out what they are computing it on and I cannot figure it out. Again, I have asked the state for relief of this penalty as well as an explanation of how they compute their numbers and to date I have not got an answer. My question is does anyone know how they are computing this insane 50% penalty and if there is any chance of mercy on it.
In a nutshell, I started off with my friend owing $16,000 ($4,500 of which they already siezed) in CA state taxes. I was able to get that $16,000 reduced to $3,200 owing meaning he got $1300 of the previous $4500 collected back. All in all, I think I have won the war with the state of CA. Some people might say leave it alone and be happy.
I say if I would have just been happy in helping my friend get his money back and straighten out his affairs, most likely I would have given up a long time ago. My goal is I would like to see another $1000 to $1500 back from the state. I am not saying they cannot collect interest but $1700 on $260 is insane. And come on, 50% on top of that, the mafia does not even do that.
I would ask this. I am looking for some help. If you feel like you want to respond in some negative way, don't even bother. I want solid advice that I can use. Maybe I have overlooked something in all this.