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California Tax Law Questions & Answers
1 Answer | Asked in Criminal Law and Tax Law for California on
Q: Hello Ask a Lawyer, I am trying to help a friend with a IRS seizure of his money with a recent denial to return funds.

He recently (3-4years ago) sold his Airport Shuttle business franchise back to a larger company and he sold his used car in the same year. He deposited this large amount (over $10,000) into his bank account. The IRS took the money because he has a past criminal record. They claim that it is drug... Read more »

Dale S. Gribow
Dale S. Gribow answered on Feb 17, 2020

MORE INFO NEEDED.

YOU WANT A FEDERAL CRIMINAL LAWYER COVERING THE JURISDICTION IN WHICH THIS HAPPENED.

IF THEY ARE IN A CONDITION TO HIRE A LAWYER CALL ME AND I WILL TRY TO HELP YOU FIND ONE.

1 Answer | Asked in Tax Law and Banking for California on
Q: please introduce me a lawyer to be familiar with transferring the money from USA account to out of USA.
Bruce Alexander Minnick
Bruce Alexander Minnick answered on Feb 17, 2020

You need a very experienced former banking operations officer who is also an experienced international banking lawyer. They do not have to be a California lawyer because international bank law is the same everywhere. Search here on Justia using the Find A Lawyer tab at the top of any page.

3 Answers | Asked in Tax Law for California on
Q: We owed the IRS $1250 for 2017. I sent an amended return with a check. They keep demanding a payment of about $1250.

They cashed the check for $202 last March, but keep sending letters that don't respond to questions I ask, and provide no justification of the amount they're demanding. Specifically, the tax rate on the 2017 return was about 10%. The corrected tax they claim would use a rate of about 93% on the... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Feb 7, 2020

I'd suggest calling into customer service directly. https://www.irs.gov/help/telephone-assistance

Ask them what's going on. There are fake notice letters out there, but if you're mailing automated collections they don't always respond. You'll likely hear from a revenue officer eventually....
Read more »

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1 Answer | Asked in Tax Law for California on
Q: Can I recover the federal taxes that have been taken out of my check if my income is nontaxable? I work for IHSS.

IHSS never informed me about this when I moved my client into my home. I was never given the paperwork needed for the federal gov. They have been deducting federal taxes since August.

Andrew M Steiger
Andrew M Steiger answered on Jan 24, 2020

Try filing a return with zero income and report your tax withholding. The result should be a tax refund.

1 Answer | Asked in Tax Law for California on
Q: Is a non-California LLC making just passive (interest) income in California liable for California income tax?

I am a Texas resident who lives in Tijuana, Mexico. I am the manager and sole member of a single-member Wyoming LLC that only makes passive (interest) income from a loan and bank account interest in the state of California. Is my LLC subject to California income tax on this income? I have not... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Jan 22, 2020

California considers you to be “doing business” if you meet any of the following:

Engage in any transaction for the purpose of financial gain within California

Are organized or commercially domiciled in California

Your California sales, property or payroll exceed...
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1 Answer | Asked in Tax Law, Business Formation and Business Law for California on
Q: Hello, I dissolved a corporation back in September and I'm not receiving notices from the Calif. Franchise Tax Board

Hello, I dissolved a corporation back in September and I'm not receiving notices from the Calif. Franchise Tax Board that I owe in excess of $900 for back "taxes" in 2018, which I think is the $800 annual fee. Am I still responsible to pay this? or can I ignore these notices since the corporation... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Jan 22, 2020

Generally you're not personally liable for the franchise fees.

It may be worth having a professional take a look and write a letter to the franchise board.

1 Answer | Asked in Tax Law and Banking for California on
Q: Hi, I recently married in July 2019. My wife

We planned to file joint taxes but a federal student loan she owes from 29 years ago is coming up. We just opened a joint checking 12/20/19. Can our joint account be frozen and money removed for her 29-year-old debit? And will our tax refund be applied to her debit if we file joint? We are in... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Dec 23, 2019

Let me just say this: If your wife still has an old student loan debt--from 29 years ago--the first thing she should do is thank the Good Lord for the government giving her the 29 years of low interest loans. The second thing she should do is stop trying to avoid paying the debt. Why? Because--if... Read more »

1 Answer | Asked in Civil Litigation and Tax Law for California on
Q: Recently my husband and I overplayed the California Franchise Tax Board in the sum of $33,333 . We left California 2004

We never received a letter regarding overpayment. The reason we recently found about the overpayment is that the California Franchise Board had taken money out of are account saying my husband owed them $5204.11. Which we have proved that they made a mistake on owing them. So, my question is can... Read more »

Paul Martin Vargas
Paul Martin Vargas answered on Dec 10, 2019

Hi. Yes, you can make a claim for refund, which may involve a civil action. Or, it is possible to handle this administratively. Please contact us to discuss.

1 Answer | Asked in Tax Law for California on
Q: Is it legal for the state of California to collect excise tax on cannabis. Aren't banks FDIC insured?

From my understanding FDIC banks cannot accept deposits from the cannabis industry. How are they depositing tax revenue from cannabis into FDIC banks?

D. Mathew Blackburn
D. Mathew Blackburn answered on Dec 4, 2019

Yes.

Yes.

Once you pay the tax to the state it's not weed money anymore.

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 paid the 2 year... Read more »

Nina Whitehurst
Nina Whitehurst 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 factors for...
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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 sent... Read 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...
Read more »

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1 Answer | 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?

Paul Martin Vargas
Paul Martin Vargas answered on Oct 8, 2019

Hi. There is the 20-year SOL, but you may have a better way of approaching this matter. If the collection was on an incorrect use of her SSN (Identity Theft), there are ways to prove this to be true and possibly get the money returned.

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 of losing... Read more »

Nina Whitehurst
Nina Whitehurst 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 well.... Read 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
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 to...
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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 over time (for... Read 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 IRS doesn't...
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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
Jeffrey Anton Collins 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... Read more »

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