Articles Tagged with California tax lawyer

How the Franchise Tax Board Collects Delinquent Tax Debt
The California Franchise Tax Board (FTB) has many of the same weapons at its disposal as the IRS when collecting delinquent tax debt, and also has the ability to use information received from the IRS to assess additional tax against you. If the IRS audits your tax return, and the audit results in an increase in tax, the FTB will most likely use this information to increase your state income tax as well.

Franchise Tax Board Collection Methods

Some of the methods the FTB can use to collect past due tax bills include:

How to Appeal a Franchise Tax Board Decision
To appeal a decision by the California Franchise Tax Board (FTB), you must first attempt to use all of your administrative remedies within the FTB. After you have exhausted these procedures, you may appeal your decision by submitting the proper forms by the appropriate deadline. These procedures were handled by the Board of Equalization (BOE), but a new bill passed in California has changed some of these procedures, with a new Office of Tax Appeals handling FTB tax appeals beginning January 1, 2018.

How to Submit Your Appeal

There are many different types of FTB notices you have the right to appeal, including:

How to Determine Residency for California State Income Tax Purposes
The California Franchise Tax Board (FTB) can come after snowbirds and other people who spend time in California, but maintain a tax residence in other states. For California income tax purposes, nonresidents are only taxed on income earned from California sources. Residents, on the other hand, are taxed on all of their income, even if it was earned outside of California, and even if it was earned outside of the country.

The difference between having a status as a California tax resident or nonresident can therefore amount to tens of thousands of dollars in potential tax liability, and tens of thousands of dollars in additional revenue to The Golden State. The general definition of a resident is an individual who is present in California for other than a transitory or temporary purpose, or someone who is domiciled in California, but it located outside of California other than for a transitory or temporary purpose.

The term “domicile” means the place where you voluntarily establish yourself and family, not merely for a special or limited purpose, but with a present intention of making it your true, fixed, permanent home and principal establishment. Determining whether a visit is temporary or transitory depends on the purpose and length of the visit.

The California Franchise Tax Board’s Financial Hardship Programs
The California Franchise Tax Board (FTB) encourages taxpayers facing a financial hardship to work with the FTB to find a way to pay off their tax debt. The FTB can give California taxpayers more time to pay, or settle tax debt for less than the full amount in some cases. Each method of solving your California income tax problems has its own requirements and benefits, so ask a California tax attorney which program can help with your situation.

Delay Collection Activities Due to Financial Hardship

The FTB will delay collection activities for taxpayers that are facing financial hardship. This is similar to being put into currently not collectible status by the IRS. The FTB does not advertise this option much, because it does not bring them any closer to collecting money from you to pay off your California tax debt.