My husband failed to file taxes from when he lived 10 months in California in 1983. We live in another State and they are coming after him claiming thousands of dollars in interest and penalties on income that he earned while living there. To be honest, the amount they are asking him to pay is about a third of what he actually earned there!
2007-10-09 07:20:43 · 2 answers · asked by Eve B 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Did he ever file a tax return for the earnings or has a tax assessment been made in the absence of him filing a return? If so, when. Was a Notice of State Tax Lien filed? If so, when and where? The statute of limitations on collection of California Income Tax is 20 years from assessment provided a notice of lien is filed and then refiled within 10 years. If not refiled, the statute of limitation expires after 10 years. I am an enrolled agent in California who specializes in representing taxpayers with large outstanding bills. If you need professional help, you can contact me through my profile.
2007-10-09 11:38:02 · answer #1 · answered by Anonymous · 0⤊ 0⤋
That's what happens when you try to skirt the rules. Since he failed to file a return, the statute of limitations clock has never started to tick. About all he can do now is work out a payment plan with the FTB.
23 years of interest would tend to pile up quite a bit of debt, especially when the penalties are added on. The interest alone would more than triple the original debt.
They WILL attach his (and yours too if you file jointly) federal refund to apply them against the debt so it's in both of your best interests to sort out a payment plan with them.
2007-10-09 07:53:53 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋