Legal Question in Tax Law in California

CA tax lien on credit report

Dear Sir or Madam:

I was a resident in the state of CA from 8/89 to early June '98. I did not file CA state income tax for 1998 as I wasn't working (rec'd unemployment comp for about 1/4 of '98) but was billed for monies allegedly owed.

Unbeknownst to me, the state placed a lien for $1,500 on my credit report (in 2001) though it was my understanding that one must be a resident for at least six months of any given year in CA to be liable for state taxes. Perhaps I received erroneous information in this regard.

At present, I am trying to secure a mortgage but was told by my loan consultant that with a tax lien on my credit report, that cannot happen until the lien is rescinded/removed. I was advised to get legal counsel concerning this matter, preferably from a tax attorney in the state of CA.

What I really need to know is if I have any grounds to contest this liability and if so, how long any potential litigation will take before the lien is removed from my credit report (I have a closing date slated for 9/21/06).

Any assistance you may offer would be greatly appreciated and will determine whether or not I retain the services of the attorney who responds to this inquiry.

Kind regards.


Asked on 5/30/06, 1:55 pm

2 Answers from Attorneys
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: CA tax lien on credit report

First of all, I cannot imagine that you would consider litigating a $1500 tax bill (although there may be interest and penalties as well) for the reason that it would cost much, much more than that to litigate the tax issue or even hire an attorney to assist you. You might first want to engage in some self-help and call the State of California's taxing authority and ask some preliminary questions about your state tax liability and go from there. Your best bet might be to just pay the tax.

Good luck.

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Answered on 5/30/06, 4:35 pm
Donald Field Donald L. Field, Jr., Attorney at Law

Re: CA tax lien on credit report

unemployment compensation is taxable in california. once you have received a notice of taxes dues, you must respond within a specific period of time, or you lose your appeal rights. at that point you can only pay the tax (interest & penalties) and, if you have a basis, file a refund claim.

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Answered on 5/31/06, 12:09 pm


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