Legal Question in Tax Law in California

$800 LLC Tax Due in Fraudulent Transaction?

Two years ago I fell victim to a fraudulent investment scheme during which I was instructed to set up a self directed IRA LLC through a third party company in Nevada. During the process the scheme unwound, and the principles are now on Federal trial, but not before I signed power of atty for the IRA consultants to file the California LLC in the mess of paperwork. I instructed them to cancel the transaction and I never signed the paperwork I had to complete the LLC. I now discover that the LLC was created on my behalf and that I now owe $2000 in taxes and penalties thanks to the $800 mandatory LLC tax that I never knew about.

Is there any way to appeal to the tax board that this was part of a fraudulent scheme that the FBI is involved with, that there was absolutely zero activity by the LLC and that I am the victim who doesn't have $2000 to throw away?


Asked on 5/16/06, 2:33 pm

1 Answer from Attorneys
Donald Field Donald L. Field, Jr., Attorney at Law

Re: $800 LLC Tax Due in Fraudulent Transaction?

with the exception of payroll taxes and certin sales taxes, taxes of llc's and corporations are normally only the responsibility of the entity. the various notices from the ftb and other documents related to the llc should be reviewed by a tax attorney or cpa/enrolled agent with experience representing taxpayers in connection with these issues.

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Answered on 5/16/06, 2:55 pm


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