Skip to comments.Guest Post: Welcome To The Predatory State of California--Even If You Don't Live There
Posted on 03/20/2012 10:10:39 AM PDT by bkopto
Correspondent R.T. is a retired accountant who has resided in Arizona since 2001. Prior to 2001, he resided in California.
On March 14, he received a letter from the California Franchise Tax Board (the agency that collects income taxes) claiming that he owed $1,343 for the tax year 2006. This was the first notification he'd ever received of this claim. This was an interesting claim given that R.T.:
-- Did not reside in California in 2006
-- Did not file a State income tax return in California in 2006
-- Did not have any outstanding tax issues with California in 2006
-- Did no business in California in 2006
-- Owned no property in California in 2006
The number $1,343 is also interesting, as R.T.'s total Federal tax liability in 2006 was $650. Since the top income tax rate in California is about 9%, and that only kicks in at relatively high income levels above $100,000 annually, then it's difficult to see how anyone could owe double their Federal tax in California state tax.
But the truly interesting part of the story is that the state took $1,343 out of R.T.'s Wells Fargo bank account on March 2, prior to notifying him of the claim. Wells Fargo charged R.T. $100 for handling the removal of his $1,343.
As R.T. observed: "If I had filed a 2006 California tax return the statute of limitations would have run out, but since I did not file a 2006 tax return there is no statute of limitations. This is the classic catch 22."
What is entirely believable is that the state of California, desperate for revenue, is churning out dubious income tax claims stretching back years and collecting the money without due process.
(Excerpt) Read more at zerohedge.com ...
Virginia used to send me letters requiring property tax to be paid on my car that was no longer tagged in VA and eventually not even owed by me. I had moved out of VA. I was never an official resident of VA as I was in the service and my official state of residence was Georgia. Finally I had a lawyer send VA a letter and they quit threatening me. Appaerntly some guys in the service must have sent in the money ‘cause they kept after me for a while.
just damn...maybe we need a law to protect the citizenry from out of control [and money] gubmints...???
Posted it on youtube...
I’ve always thought the citizens should implement a citizen processing fee of $50 or $100 for having to reply to the government when they’ve caused unnecessary work for the citizens. If there was a penalty to the government for their mistakes this crap would soon stop.
Wells Fargo did something very similar to me about a year ago. I wouldn’t use them again if they were the last bank on earth.
If a retroactive tax is legal why not the ability to tax income of nonresidents?
Sounds like somebody who just wants to do the accounting that Americans won’t do has appropriated his SSN.
I would start by suing Wells Fargo for allowing the unlawful withdrawal.
I would, of course, sue California for fraud and theft.
The amount would include all legal fees and any penalties I and my lawyer could dream up.
California Franchise Tax Board could use a few Spalding Trademarks imprinted on their respective foreheads.
As a career Navy man I had several ties over the years to the State of California. When stationed in Japan, I had a mailing address (Fleet Post Office Box) in San Francisco. Following that, I went to survival school just North of San Diego for about six weeks prior to going to Viet Nam for a year (and again using a Fleet Post Office Box in California). My last two-year tour was in San Diego - where as a "geographical batchelor" I lived in the barracks on base (a Federal Reservation, by the way).
At the time I retired in September 1990 California wanted to tax my military retired pay based on the percentage of it that was earned during the amount of time that I had a California address. They didn't care that I had actually never lived in the state other than on a federal reservation outside of state jurisdiction. The US Supreme Court took a challenge to this practice and declared it unconstitutional (Thank Goodness). Otherwise they would have been taxing me and a lot of other people based on "Sourced earnings".
It sounds like mail fraud to me.
George Runner is on the Franchise Tax Board, was a Republican Senator (his wife has the seat now), and is a good guy. If you’re registered to post on this site, could you post it? In his spot, I would call George Runner.
Are you meaning to reply to me, or another? Post what? What is "this site"?
Sorry, I can't seem to get what you are relating.
My thinking is that the states are just realizing that income tax revenues will be far less than they expected. Property tax revenues are down. In California, that means a Hungry Golden Bear.
In the other states, Lord knows what it could mean.
Hang on to your wallet, the Tax Man Cometh.
The source for the story. If I could get a message to the guy who had his money stolen, I would advise he get in touch with George Runner. Stuff like this irritates me.
What we have now is gangster government
When I left Jersey in 2006, I got a bill in 2009 for about $1000. They didn’t touch my account though.
If you fight it you will more often than not win.
Gotcha. Thx for the clarification.
I purposely broke CA law by never registering my auto there. I never registered to vote in CA, nor bought any real estate or paid CA income tax. I went out of my way to avoid any connection whatsoever.
About five years after leaving I found they had placed a lien on my FL residence for several thousand dollars.
I found a CA tax attorney via the internet and in a flash got the fine and lien removed. The lien was pure fishing.
The only positive thing I can say about CA is that their “Board of Equalization” is truth in advertising.
I got transferred to CA in 1986 and we had lived there less than one month when the federal government declared our company ESOP (Employee Stock ownership Plan) was unlawful as written and all employee monies therein were to be treated as real income subject to taxes.
The state of CA jumped on that like a dog on meat. They stated we owed the state several thousands of dollars. Then to rub salt in the wound, tried to get interest and penalties added as the ESOP had been in effect for years. They failed in that gambit.
But it all turned into a bloody nightmare, as they nailed us for full taxes on all money we had in the ESOP before ever living there. I seldom use the word hate and mean it, but CA is the exception.
Californians — and, now, just about everyone else in the world, it seems — would be better served if the Franchise Tax Board had rope marks imprinted on their respective necks.
Me too. Wells Sucks.
When we left Florida in 2006 with no destination in mind I had our mail forwarded to my brother in Maryland and once a week he would FedEx it to us where ever we were. We settled in Kentucky after several months and officially changed our address at that time from FL to KY because we sold our FL house at the same time we bought our KY house.
The key thing to remember is that while we traveled we were residents and property owners in FL. We were just traveling. When we found what we liked we sold the FL home and bought the KY home.
A year after living in KY, I got a letter from the state of Maryland claiming that I owed state income tax for 2006 because I had my mail forwarded to a Maryland address for a few months. The state said I had to prove why I did not owe them money. Anyway I did just that & I have filed the letter they sent me accepting my explanation. I figure there’s no telling when some dunce will pull my name out of the computer and resurrect the whole business. I don’t know if there is a time limit, but I do know that they are desperate for money.
This type of criminal behavior goes on all the time with California and other crooked democrat party hellholes. New York and Illinois come to mind.
Wells Fargo is despicable for this and lots of other reasons. Don’t ever do business with these d-bags.
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