Complaint Review: California State Franchise Tax Board

I have an almost identical story. I had a small business that failed after only a few months. I never earned any revenue only a lot of debt and disappointment.  I left the state and had a bad year of trying to earn money so I did not file any taxes that year. Subsequently the IRS was suspicious and audited me that same year. Several years later I get a letter mailed to my apartment in Hawaii that I have been in collections for the last three years over a debt that I never owed.  

When I called the tax board they claimed that this all started with my business license. The Licensing department invents an income for anyone with a license and reports that income to the taxation department every year. My license has not even been valid for several years, yet they are still inventing income and making reports on me.

My biggest question is how is it legal for someone to invent a debt I never owed and send me to collections and in the above victims case garnish wages on this imagined debt? This seems like the biggest scam ever! Can anyone do this to whomever they wish?

I had a similar experience with the CFTB. I was a sole proprietor. I received a large inheritance from a family member, closed up shop and moved out of California to pursue other life options. CFTB sent me a letter stating that they assume I am still working, must file a tax return, pay taxes. They came up with an arbitrary number based on their proposed assessment then took thousands of dollars out of my B of A account. Through many faxes, phone calls, headaches and legal help, I proved them wrong and got my money back, they sent me an apology letter. I found that you can fight the CFTB with a harassment law suit and win. A guy named Paul Ballmer did it. youtube.com/watch?v=OcaCAysI5YU

Please let us know what is the rest of the story after you have contacted the Ca. State Franchise Tax Board. How much was taken from your bank account? What was the reason for the withdrawal.