Legal Question in Tax Law in California

Re: Unpaid State Franchise Tax Liability???

First of all, being contacted by the IRS is irrelevant. The IRS shares data with the states, and in California, the Franchise Tax Board does takes care of state taxes.

There is normally a 10 year statute of limitations from the time you filed your state return or from the date an assessment was made against you. If you filed a state return in 1991 for the year 1990, you may be OK. If they assessed you based on your information that you filed with the IRS, the 10 years did not start until the assessment date.

However, they often base their assessment on your income without taking into consideration your deductions. You may be able to file a return if it would bring the amount owed down.

How much is involved? If a large amount, you might need some help.

Re: Unpaid State Franchise Tax Liability???

Thanks for your posting. First of all, the IRS is NOT the franchise tax board. There is a statute of limitations for unpaid taxes, which depends on the assessment, and on whether or not you filed a return.

You should sit down with a CPA, enrolled agent, or an attorney, and go over your potential liability based upon the time periods involved.

Thanks, and best of luck.

Re: Unpaid State Franchise Tax Liability???

www.taxworkout.com

There are time limitations, but they are very complicated. You must use the assesment date, and add to that time for certain other events. The good news there are many other ways to resolve the tax problem.

Joel Selik

Masters of Laws-Taxation

Attorney At Law