QUESTION
Is the California FTB allowed to collect money for taxes I didn't file dating back to the 80's and 90's?
Asked on Apr 05th, 2014 on Taxation - California
More details to this question:
The California Franchise Tax Board is coming after my father for taxes he didn't file dating as far back as 1987. Including interest charges he's accrued over time, he now owes over 44k. He received a call about two months ago from a person claiming to be from the tax board. My father hardly speaks or understands English and asked for a translator. The tax guy told my father his English was fine and didn't provide a translator. My father answered questions to the best of his knowledge and they never spoke again. The tax person called my father a few days ago and I translated for my father. He asked if my father had a bank account and my father answered yes. The tax person was upset because this time my fathers answers did not match those of their previous conversation. Accusing him of lying, he froze his bank account the same day. Is there a way those funds can be released at this point? Does he even have to file 20 year old taxes? Thank you in advance!
1 ANSWER
Taxation Attorney serving San Diego, CA
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AB Tax Law, Law Office of Adam Brewer
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Unfortunately, the Collection Statute of Limitations doesn't begin to run until the return has been filed by the taxpayer. In this case, since it appears that your father, the taxpayer, never filed the return the Statute of Limitations has not yet started and the state continues to have the ability to assess the tax liablity.
With regards to the bank levy, your father's bank will hold the funds for atleast 10 days after having received the Withholding Order from the Franchise Tax Board. In that time, your father can attempt to have the Withholding Order released by either resolving the tax laiblity by filing delinquent returns showing no taxes owed or by establishing a financial hardship using Form 3561.
Let me know if you have any further questions.
Adam Brewer, Esq.
AB Tax Law APC
1-888-351-3707
Answered on Apr 06th, 2014 at 3:28 PM