- Report: #1084534
Complaint Review: Franchise Tax Board - Sacramento California
-
Author Not Confirmed
Why?
Franchise Tax Board
PO Box 942857 Sacramento, 94257 California, USA
Phone:
800-852-5711
Web:
ftb.ca.gov
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Franchise Tax Board California FTB Claiming my General Partnership is an LLC Fraud Sacramento California
Around April, 2012, my dad an I formed a gneral partnership for our proptery management business. We filed a DBA with the county and filed for a tax id as a general partnership with the IRS. In April, 2013, we filed our taxes as usually using our CPA (both personal and for the general partnership).
At the begginingg of August, 2013, I received a notice from the state of California (via the FTB), that as an LLC, I need to file quarterly withholdings. Then, 2 days later I receive a notice saying there is was an error on the partnership tax return (conviently, is doesn't say what the error was) and that we owe the state $800 in income tax.
For those who don't know, California is a rip off. They have a minimum state income tax for LLP, LLC and corporations. There is no income tax for a general partnership, since the income is distributed via agreement between the partners. Then reported and paid via each partner's personal income tax. So my partner and I, already paid any income tax personally. Once again, there is NO income for a general partnership, even though a tax return must be filed for the general partnership. All income taxes are paid personally based on the partnership split agreement.
I sent a copy of the tax bill to my CPA, whom contacted the FTB and the FTB said they would remove the assesment. Well, on 09/14/2013, I received another tax bill for the $800 minimum income tax, plus a $20 monthly penality, plus an underpayment penality of $40 and $9.86 in interest. So now I'm going to have to contact the FTB and find out what their problem is. I'm also going to send this new tax bill to my CPA.
The franchise tax board of California knows no competents. I went a head and went to the secretary of state's coporate/LLC/LLP filing website (kepler.sos.ca.gov) . I looked our business name under the LLC/LLP section and to no suprise, it doesn't show up. I also took a look the tax return filed for the gneral partnership and it is inded checked as a general partnership. So where is the FTB getting this is an LLC/LLP?
I mean I know the state of California is swimming in tons of unsubstainable debt and on the verge of bankruptcy. They are extremely desperate for additional revenue and have gone from being one of the wealthiest state, to one of the poorest in the union. But where are they getting these lies? There is no place any where that our business is indicated, registered ,etc, as an LLC/LLP. So as I said before, I'm going to contact the FTB on Monday and find out what this non-sense is all about (well, we already know what it's about...money and greed). I'll post an update to this shortly. Looks like I may be sueing the state soon.
1 Updates & Rebuttals
anonymous
Follow Up
#2Author of original report
Mon, October 28, 2013
So I lied. I wasn't able to call the FTB until Thursdays (09/19/13).
I called FTB at 800-852-5711. Talked to, I believe, Cecilia. Her English was a bit hard to understand at times. I asked her why I'm receiving a bill for a limited partnership that I don't have and that my CPA called last month; the FTB said they would remove the assessment. I also told her that the FTB can verify this is not a limited partnership with the secretary of state.
She asked for the entity id number, business name, business address, my full name and my phone number. Then said she couldn't access my account and she would transfer me. She gave me a phone number of 888-635-0494, in case I was disconnected. Then I got to sit on the phone on hold, for a delightful hour, listening to music. So after being on holds for 40 minutes or so, I'm really wondering if she really couldn't access the account or if I'm just being put off so I go away???
At any rate, at least there is some good news. I have unlimited minutes on my cell phone. My cell phone has speaker phone capability (thank god). I'd hate to have to hold the phone to my ear for an hour. Lastly, I ran the state's 800 phone number bill up while they had me sitting on hold all that time. This is probably the part I enjoy the most!
Eventually, I talked to Guy at Dept. 636, whom asked all the same questions as Cecilia. Guy was magically able to access the account though. He said the account was scheduled for review, but the review hasn't happened yet. He put the account on hold and asked that I mail in a copy of the statement I received, along with a letter explaining the same things I told him. So I did just that.
This is such a great system! Even though it is set up for review and should be on hold because of the scheduled review, it still keeps mailing bills and adding penalties, plus interest. It's completely obvious all the state is interested in is money here. I'll play along and see how much longer this escapade carries on. I wonder how many of these there are out there. Look at the money the state is losing by mailing these baloney bills out and having people call in, driving the state's costs up. Of course, I suppose the state only needs one poor sucker to pay the $800 minimum income tax they don't really owe and it covers a large amount of the state's losses.
I'll keep this post updated, but as of 10/28/2013, I still have heard nothing back from the FTB regarding this matter.
