California statute of limitaions on unpaid income taxes

[I AM ALWAYS LIABLE]

My response:

Income taxes are not "debts" under the Federal FDCPA and the California counterpart. [In re Westberry (6th Cir. 2000) 215 F.3d 589, 593, fn. 4.

In other words, you can ask the Franchise Tax Board (FTB) to confirm the tax debt and how they figured it until the cows come home. They don't have to and they won't.

You need to remember, the things that are constant in life are "death and . . ."

You got it. "taxes".

IAAL

[klh43]

But, this tax has been due since 1988 and I have gotten federal refunds for the past 4 years. Why wouldn't they have taken it before?

[I AM ALWAYS LIABLE]

Originally Posted by klh43

But, this tax has been due since 1988 and I have gotten federal refunds for the past 4 years. Why wouldn't they have taken it before?

My response:

We will be now. I never said we were the "fastest" agency in State government.

IAAL

[klh43]

So, if I filed this amnesty thing and set up payment arrangements, would I be able to receive my refund from the IRS? I'm in no financial position to give up my refund.

[klh43]

And why is it you say "we will now". ?? What's the difference between now and the last 17 years?

[SSMan]

California resident

I just got my notice for '82 & '83 today. I have no records back that far.

My question is: If I am forced to pay up can they attach my Social Security check (which is my only source of income)?

[abezon]

SS is exempt from garnishment (other than from overpaid SS). BTW, the IRS has your records -- get them & reconstruct your 82/83 info & CA returns. You may be able to tell CA to piss off. I suggest you get an enrolled agent or tax attorney involved ASAP, as the CA FTB is nasty.

[klh43]

Okay, I am confused here. There is no statute of limitation on unfiled tax returns. But there is a 10 year statute of limitations on filed tax returns? So, if my tax return was filed in 1988, they can't attach my IRS refund, right? What exactly does this 10 year statute of limitations mean?

Thanks

[abezon]

There's a 10-year limit on collecting federal balances due the IRS. No one's stated whether there's a state-imposed limit on the California FTB collecting balances due CA. There probably is one; I just don't know what it is.

[barnal]

I am freaking out! I just received a tax amnesty application for tax year 1979 stating I owe almost $5,000 for that year. All I remember is I almost went totally broke in 1979 with real estate interest rates hitting 20 percent. I know I filed a tax return but do not have a copy, but have the name of person who prepared it. Don't even know if they are still around. I am incurring all sorts of medical expenses and am not working. What should I do.

[johnathandoe]

I keep hearing about these amnesty tax notices. Back in the realy 90s I didnt file state returns--I was in college and it may have been a few thousand dollars form part time jobs, so the amount may be piddly (but then again, the interest could add up). Should I be expecting a notice soon? How are they deciding who theyre notifying?

[Guildster]

From California:

Following is information that you may all find helpful.

Ordlock, Bayard v. FTB (Supreme Court Case No. S127649)
filed in July of 2002
The issue is whether tax involved was timely assessed.
The LASC found for the FTB; the taxpayer appealed to the Court of Appeal. The court of appeal found for the taxpayer; the FTB appealed to the California Supreme Court. The FTB opening brief is due March 4, 2005. The Supreme Court will undoubtedly find for the FTB, but if the end result was for the taxpayer, the Franchise Tax Board would be in a very bad place.
This case is from the FTB site.

A thought might be for an injunction against the collection of these outrageously old tax assessments on behalf of everyone with assessments older than 10 years pending the outcome of this case.


Here are some current California tax codes that may pertain to this matter.

19032. As soon as practicable after the return is filed, the
Franchise Tax Board shall examine it and shall determine the correct
amount of the tax.
19033. (a) If the Franchise Tax Board determines that the tax
disclosed by the taxpayer on an original or amended return, including
an amended return reporting federal adjustments pursuant to Section
18622, is less than the tax disclosed by its examination, it shall
mail notice to the taxpayer of the deficiency proposed to be
assessed. In no case shall the determination of the deficiency be
arbitrary or without foundation.
19034. (a) Each notice shall set forth the reasons for the proposed
deficiency assessment and the computation thereof.
(b) Each notice shall include the date determined by the Franchise
Tax Board as the last day on which the taxpayer may file a written
protest pursuant to Section 19041.
19035. In the case of a joint return filed by husband and wife, the
notice of proposed deficiency assessment may be a single joint
notice, except that if the Franchise Tax Board is notified by either
spouse that separate residences have been established, it shall mail
to each spouse, in lieu of the single joint notice, duplicate
originals of the joint notice.

19041. (a) Within 60 days after the mailing of each notice of
proposed deficiency assessment the taxpayer may file with the
Franchise Tax Board a written protest against the proposed deficiency
assessment, specifying in the protest the grounds upon which it is
based.
(b) Any protest filed with the Franchise Tax Board on or before
the last date specified for filing that protest by the Franchise Tax
Board in the notice of proposed deficiency assessment (according to
Section 19034) shall be treated as timely filed.

Good luck to us all.

[KDBRitton]

RE: California income tax collections

I have spoken today with two FTB representatives who both told me there is no SOL on unpaid assessed taxes. However, researching Assembly Bill 2414 which was amended and passed last on 4/23/02 to be effective Jan 1, 2003, indicates that there IS a 10 SOL for collection purposes. If the state files a state tax lien against your property it is only collectable for 10 years from the date of lien filing, BUT...they can RENEW the lien for another 10 years and so on...if they want to.

Now, what I want to know is why are they telling people the collection period never expires, when it does???? One woman I spoke with at FTB says that they are trying to collect 20+ years of unpaid back taxes (we know someone else here posted of such an old debt too). Who's correct???

Here is the link to the history of AB2414
[url]http://www.legislature.ca.gov/index.html[/url]
remember to select year 2002 when searching for the bill info

[bewildered9]

I lived in CA for a few months back in 1982. I was only there temporarily, but I did have CA-sourced income for the period.

I did not register to vote, get a CA tag for the car, etc. and never considered myself to be a resident. It never even occurred to me that I should file a state return.

I'm now getting the amnesty letter also....they are asking for about $4000.

I'm faced with a couple of bad choices: either ignore it and hope that it goes away, or call them up and ask how much they want. I don't mind paying my fair share, but it seems unfair that they would sit on this for 20+ years and then hammer me with all the penalties.

Can anyone give me an approximate amount of the amount they will want if I file for the amnesty? There's no info on the letter other than the "without amnesty" figure.

In a number of posts, snipes suggests getting an enrolled agent to deal with this. Where can I find a list of enrolled agents?

Thanks in advance....

[Snipes5]

You probably don't owe them squat. An EA will sort this out for you, you will only have to pay whatever the EA charges for their time.

You can find a list of Enrolled Agents either by writing the IRS office of Professional Responsibility, or by going to the website for the NAEA, the National Association of Enrolled Agents.

You can do a search on people with expertise in California.

Snipes