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Discussion:? for California tax professionals

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Discussion Forum Index --> Basic Tax Questions --> ? for California tax professionals


Discussion Forum Index --> Tax Questions --> ? for California tax professionals

Anchorman (talk|edits) said:

9 March 2011
Have a client who is a resident of VA (drivers license, permanent residence, etc) but who many years ago lived in Calif. She is in life insurance/financial services, and apparently her life insurance license, which I understand is issued by the state insurance board, shows her as a Calif resident. Hence, the Calif Franchise Tax Board is looking for a state income tax return for Calif, despite the fact she filed a Virginia state return. Anyone in Calif have experience in this regard, or knowledge of the law so that she is not taxed by two different states? What recommendation should I make to the client to fix this? Thanks in advance

Ztom (talk|edits) said:

9 March 2011
Because they have Ca lic. the state thinks they need to file. Call ftb and tell them the situation and they will take you off their list.

JAD (talk|edits) said:

9 March 2011
Anchorman, I have a client who moved out of state in 2005. He has one brokerage account that sends statements to his parents address in CA. CA sent a notice requesting returns.....I simply sent a letter and explained the facts, and that was it. I think you are seeing evidence of the FTB leaving no stone unturned in looking for revenue.

Anchorman (talk|edits) said:

9 March 2011
OK, thanks to you both for your help

Alexander15 (talk|edits) said:

9 March 2011
Anchorman, one of the FTB's determinants of residency is "where you maintain your professional licenses." Even though the taxpayer lives in VA, the CA license issue could cause a problem, or at least require some clarification. See FTB Publication 1031 for more information.

KatieJ (talk|edits) said:

10 March 2011
Anchorman, simply maintaining her professional license in California won't make her a CA resident, but it will continue to raise questions as long as she has it. I would assume that she is also required to be licensed in Virginia. Why not terminate the California license? Does she really need it?

Ztom (talk|edits) said:

10 March 2011
Tax preparers Hot Line Call 916.845.7057 . they will take care of problem.

Mscash (talk|edits) said:

10 March 2011
Franchise Tax Board is pretty agressive about chasing delinquent returns even when they aren't due. In the case of professionial license holders, even those with out of state addresses, it makes an estimate based on what it thinks a typical license holder is going to earn then proposes tax on that amount. Your client should just inform FTB that she had no California income during the year in question.

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