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California Tax Law Questions & Answers
1 Answer | Asked in Consumer Law, Tax Law, Business Law and Energy, Oil and Gas for California on
Q: Can I sue California for gas prices being more expensive than other states?
D. Mathew Blackburn
D. Mathew Blackburn
answered on Nov 19, 2019

You can sue anyone for anything as long as you can get them served.

You're case will be summarily dismissed, probably for not stating a claim upon which relief may be granted.

You may be cited for filing a frivolous suit.

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for California on
Q: I lived on 52 acres shared by my mother and uncle. I alone paid the $10,000 in back taxes. Do I have any rights to it?

The property was my dad & uncle's and my dad's part went to my mom when he died. I lived there for over 23yrs in the main house but moved into an RV on the property so my mother, sister, and her husband and kids coild have the house. I paid rent monthly just to help out and I alone... View More

Nina Whitehurst
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answered on Nov 10, 2019

You have a claim against the property owners for reimbursement but be prepared for them to make a counterclaim against you for rent.

1 Answer | Asked in Tax Law for California on
Q: California Tax Question.

I have received a settlement from a Company in California that I had worked at 3 years ago. I am now a Florida resident. Do I have to file a 2019 California tax return?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Oct 28, 2019

The first step would be to determine if the settlement is taxable at all.

Assuming it is, California will likely claim it's source income from California and subject to tax. They often claim things that are not fully accurate.

Corbett v. Franchise Tax Board sets out 29...
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2 Answers | Asked in Tax Law for California on
Q: Tax Law. I recently received a letter from the IRS asking for my small business W2's for the period ending 2013.

I mailed those in back in 2013 but the IRS slis saying they never received them. Anyways I resubmitted them again this year but now they want an explanation of why I didn't send them in back in 2013. They are trying to charge me with a $10,000 civil penalty. How can I show them proof that I... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Oct 21, 2019

If you have a certified mail slip you can send them that otherwise it's your testimony that they were submitted.

You have to keep pushing back and appealing until you find someone who understands that testimony is a form of evidence and will accept that, or you can just accept it and...
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2 Answers | Asked in Contracts, Estate Planning, Real Estate Law and Tax Law for California on
Q: How do I find out about a property that's been transferred to my mom's name?

I just found out that my grandmother had dementia and can't remember much. I recently learned that my grandma had put her house in my mom's name. Her son Ronnie (my sperm donor), his girlfriend and my uncle Tim are all living under her roof and haven't taken her to a hospital in fear... View More

Nina Whitehurst
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answered on Oct 8, 2019

You can go to the local county recorder's office and look up the deed and obtain a copy by paying a copy fee per page. If you are unable to do that, you can hire almost any real estate paralegal or attorney to obtain a copy for you. Some real estate agents have the ability to do this as... View More

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2 Answers | Asked in Tax Law, Appeals / Appellate Law and Constitutional Law for California on
Q: The BOE levied my deceased mother's irrevocable account left me over two years after her death.

They wrongly linked her to someone else whom used her SS#. Isn't there a statute of limitations for this levy?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Oct 5, 2019

The SoL is twenty years.

You have to challenge it.

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2 Answers | Asked in Tax Law, Appeals / Appellate Law and Constitutional Law for California on
Q: How long would the BOE have to file a levy on an irrevocable trust

The BOE wrongfully linked my deceased mother's SS# to a sales tax matter. over a year after her death they levied the trust account left to me. Is this legal?

David S. Greenberg
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David S. Greenberg
answered on Oct 4, 2019

The facts as you've described them are quite unusual and an answer to your inquiry would require an investigation and analysis by a skilled attorney with experience in dealing with the BOE, which is now the CDTFA.

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1 Answer | Asked in Tax Law for California on
Q: I have an LLC’ on a house that is not generating any income. Can I take the cost of refurbishing the bathroom on my tax

Also there is a very large utility bill owed & now services has been interrupted. Can I take claim that on my taxes if I pay it?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Oct 2, 2019

It depends on if your intent is to create an income producing property or an investment property. It also depends if it's a repair or an improvement.

From what you described this sounds like an improvement on an investment property so it would not be deductible but it would be added...
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1 Answer | Asked in Tax Law for California on
Q: Is "tax debt" a transient value? If judgement references "tax debt" is this the amount at filing date, or other date?

Signed stipulation for judgement says:

"Tax Returns:

Each party shall solely be responsible to pay his/her one-half share of the tax debt for 2013 and 2014 in a timely manner."

Since the "tax debt" amount is not specified, and the tax debt value changed... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Sep 9, 2019

From a tax perspective the "tax debt" is the amount of tax liability assessed, all penalties and interest, less payments made.

My interpretation would be the amount of debt at the time the agreement was entered into plus all interest accrued after the signing date.

The...
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2 Answers | Asked in Tax Law and Business Law for California on
Q: My husband and I have an s-corp in CA and we are the only officers in our s-corp.

Are our medical expenses considered business expense and can be deductible for the s-corp?

Jeffrey "Anton" Collins
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answered on Sep 9, 2019

I agree with Attorney Blackburn that the premiums may be deducted. The expenses may be deductible as compensation to the recipient. However, this is not advised because they become subject to payroll taxes at both the company and individual level. This treatment may be more helpful when there are... View More

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1 Answer | Asked in Tax Law for California on
Q: for owed federal withholding taxes how long can i make a repayment schedule for back business payroll taxes?
Andrew B. Gordon
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Andrew B. Gordon
answered on Aug 26, 2019

I assume you are referring to back federal payroll taxes (940/941). The IRS can be very aggressive in trying to collect these back taxes and even threaten shutting down your business. The good news is that in most cases, the IRS will allow you to enter into a payment plan. We have successfully... View More

1 Answer | Asked in Tax Law for California on
Q: I am the 100% owner of a CA C corporation

I have had the same girlfriend for the last 15 years

I write checks to her regularly - Some are small line $5.99 and some are larger like $4,000

In any given year total checks would be under $100,000

Assuming $100,000 per year checks to her

• She has no tax... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Aug 26, 2019

You've missed a few things.

There are a few potential outcomes from a tax perspective.

1. These are gifts from you to her and the IRS and CAFB will pretend you took a dividend and then gifted her those amounts.

2. She has constructive dividends from the corporation....
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2 Answers | Asked in Immigration Law and Tax Law for California on
Q: Citizenship and possible back taxes.

My citizenship interview is scheduled for September. I may owe taxes to the IRS.

1. My former husband and I had an installment agreement with the IRS. We divorced in 2018; the marriage settlement agreement states that “the debt to the IRS” (it doesn’t specify the amount owed or the... View More

Kevin L Dixler
Kevin L Dixler
answered on Aug 26, 2019

Yes, you should bring proof that you filed your tax returns, among other items, as mentioned. It’s unclear whether the documents will prove enough or even the subject of a request, but the examiner can make a request as a matter of discretion.

If asked for your tax returns, or proof of...
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2 Answers | Asked in Tax Law and Collections for California on
Q: I cancelled an inactive LLC but still have back-tax/penalty notices coming in. What can happen/what is my best recourse?

The notices were going to a location where I do not live (went to my ex-partner's parents house), and I just got my hands on the notices that say we owe thousands. This LLC was only active for a few years, as a production-company shooting a series, and unfortunately, the entity wasn't... View More

David S. Greenberg
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David S. Greenberg
answered on Aug 14, 2019

It is quite possible that you will be insulated from personal liability for the tax obligations of the LLC.

If you would like to discuss this in detail, please call my office to schedule a free initial consultation.

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1 Answer | Asked in Tax Law for California on
Q: Tax law on private ownership of a boat mooring...

I own a boat mooring (property) within the estuary of the City of Morro Bay, CA. The bottom land of the estuary on which my cement block sits belongs to the State of California which has granted the City of Morro Bay responsibility to manage (under a City/State tidelands agreement). I am billed... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Aug 12, 2019

That's a pretty specific issue, you're going to have to hire a professional.

2 Answers | Asked in Contracts, Estate Planning, Real Estate Law and Tax Law for California on
Q: My father died with out a will in CA> The house was in my brothers name. Do the other siblings have any control

Father stated before his death that he wanted his youngest daughter to live in his house because the other siblings were out of the state and already well established, Home owners , with good jobs. Literally on his death bed he told everyone that he wanted his youngest daughter to live in his... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Aug 11, 2019

Estate planning is important. The documents control the disposition of the property unless there are specific circumstances that require a different treatment. You should consult a California Probate attorney to see if any of the exemptions apply.

Best of luck.

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1 Answer | Asked in Tax Law for California on
Q: Can the $250,000 capital gain free tax exclusion from my home sale be directly deposited into my Roth?
D. Mathew Blackburn
D. Mathew Blackburn
answered on Jul 29, 2019

That question doesn't make any sense.

The personal residence exemption excludes tax on the gain of a personal residence up to $250k unrelated to the transfer of the money.

Contributions to a Roth IRA are capped based on age and income.

If you sell your home you...
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1 Answer | Asked in Tax Law for California on
Q: I know this question is asked a lot but I have a variation of it.

I have an 100% online business (no shipping or physical products). I live in California but I am originally from Florida. For tax purposes, should I LLC in Florida and file as a foreign entity in California? Will this help me save on taxes? How would home based business deductions work if I opt for... View More

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Jul 24, 2019

This is not a legal question. This is a small business question that should be asked to your small business lawyer.

If you do not have a small business lawyer you should get one--before you make mistakes that cannot be corrected without spending lots of money.

Here is some free...
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1 Answer | Asked in Tax Law for California on
Q: a friend did my taxes as a self prepare and she added school and i didnt go to school and i liable or is she

she did my taxes through turbo as a self prepare, and messed my taxes up

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jul 23, 2019

She;s subject to preparer penalties, you're subject to negligence penalties.

You'll need to amend your return.

2 Answers | Asked in Tax Law for California on
Q: I got a letter from the IRS that I owe $2000 because the tax place I went to did my taxes wrong. What do I do?

The place that did my taxes filled my taxes out wrong.

I provided documents that I went to school at DVC and contra costa medical career college and they put Sacramento state and the wrong education credit. I am suppose to be getting lifetime student opportunity credit.

They put... View More

Andrew M Steiger
Andrew M Steiger
answered on Jul 12, 2019

You can start by going back to that tax provider and explain what they did wrong and ask them to file an amended return for you to correct their mistake. If you still owe tax, and are assessed a penalty and interest, there are steps you may be able to take to avoid the penalty and interest.

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