Legal Question in Tax Law in California
Franchise Tax Board - Statue of Limitations?
Is there a statue of limitations for the Franchise Tax Board? My husband recently received a letter stating that he owes for taxes from twenty years ago. I've contacted the company that he worked for at that time to obtain a copy of his W2 which they no longer have. He did not file his tax return but he would have received a refund if he had filed. We have been married for four years. If he does, in fact, have to pay, does this mean that I am liable as well?
Any information you can give me would be helpful.
2 Answers from Attorneys
Re: Franchise Tax Board - Statue of Limitations?
There is no statute of limitations. Your separate property (the money and things that you owned before you married) is not available to satisfy your husband's tax debt, but community property - including your wages, if any - are available to satisfy his tax debt. Your best course of action is to file the return now, and then continue to fight the FTB if they want to continue to collect. Please feel free to contact me if you would like help with this matter.
Re: Franchise Tax Board - Statue of Limitations?
When one does not file a tax return, the state (or IRS for that matter) "file" one for you. Of course, they file as if the person is single and had not dependants or any other deductions. They will also take any gains from stock transactions, without taking into consideration any possible losses. If you call teh Franchise Tax Board, they should be able to tell you what the income and withholding numbers are. From that, a return could be filed, and if there was a refund based on his actual situation, the issue will be resolved. However, do not plan on a refund. There is a statute of limitations for that.
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