Legal Question in Tax Law in California
California Tax Amnesty
Dear Sir,
I have recently received an amnesty letter from California. I moved from California to Oregon in 1980. I am now living in New Mexico. For likely a couple of reasons I did not file either Federal or State income taxes for that year. I never heard anything from Federal or State, so probably assumed that my withholdings were sufficient to cover my tax. Now 24 years later, I get this letter from California telling me that I owe them almost $19,000(without amnesty). I checked my Social Security wages for that year, and I made about $25,000 and I was married with two children. Over the next 15 years, I dealt with California on a number of occasions with child support issues, but not once did the California Tax Board ever communicate with me concerning this tax. I attempted to contact the company that I worked for, to see if I could get my payroll records for that year, but it has been too long ago. Thank you for any advice you might have in this matter.
1 Answer from Attorneys
Re: California Tax Amnesty
If you did not file a return then the statute of limitations never ran. Most likely California calculated your taxes based on W-2's, 1099's and/or other information received and sent to your last known address a notice of proposed assessment. This notice provides 60 days to appeal, or the assessment is final.
Even without your payroll records you might be able to reconstruct your correct taxes based on the social security information and any records you have regarding personal exemptions and itemized deductions. However, the California Franchise Tax Board is not required to even consider this information at this point.
Another option, if you have records to reconstruct a correct tax return, is to pay the taxes, penalties and interest in full (without accepting the tax amnesty), file a refund claim and, when that is denied, file an action in superior court.
There also remains the question as to whether or not California will actually attempt to collect the amount owed from your accounts or assets as you now live in New Mexico. A local CPA or tax attorney should be able to tell you whether or not California has begun aggressive collection action in New Mexico.
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