Sometimes a San Diego Business or person doesn’t have to do anything to run afoul of the California Franchise Tax Board (FTB). I had an issue with the California FTB years ago before I ever became a California resident! My response to their initial contact was “I’m from Montana, I’ve never worked in California, never even been to California. How can I owe you tax?” Apparently, someone had simply mis-entered a social security number, so they started chasing me for money and even attempted to ding my credit. I had never set foot in the State of California!
Typically, the FTB makes their money the same way as the IRS – through audits (as does the BOE). If there is a change on your IRS return, the FTB will piggy-back on the changes to your IRS forms and come after you for California’s share of the pie. That’s why we fight changes at any level for all of our clients. A change in a finding by the California Employment Development Department (EDD) may seem an annoyance (and trivial), but the impact on your federal taxes and the IRS may be substantial, and vice versa. If you are contacted by any California tax agency or the IRS a huge red flag will usually go up, but what is the first step you should take? Contact the experienced business and taxation attorneys at Allen Barron for a free consultation at 866-631-3470. It may seem like a small matter on the one hand, but the other hand could open up an entirely different world of “exposure” and both the IRS and the State of California are aggressively seeking revenue. We protect our clients, and help them to keep their hard earned profits.