The article starts with a story of someone who had $1343 confiscated from his Wells Fargo bank account for tax year 2006 despite not residing in California in 2006, not filing a State income tax return, not doing any business in the state, not owning any property in the state and not having any known tax issues left from when he did live in the state. As often happens, once such a story surfaces more stories come pouring in. Perhaps the most outrageous, because it's the highest total I know of, the California FTB sued Gilbert Hyatt, the inventor of a microprocessor chip, for $50 Million tax fraud. The problem is Hyatt claimed he wasn't a resident of California when he invented the processor, rather that he lived and worked in Nevada. One can imagine that if you've invented something with a great potential for royalties, they'll try to tax your income saying you thought of it while changing planes in California, or vacationing, or any other excuse they can think of to claim part of it.
In today's comments, I received an update to that story. The corruption is still going on. They provided a link to more stories at Stephen Clark's California Political News and Views.
Have you had the California Franchise Tax Board take your Social Security check or money from your bank without notification or explanation? Did you move out of State without notifying the Board and they continue to take money from your banks accounts, though no longer a California resident—oh, you have no obligation to tell the State you moved.The 92 comments are full of more stories. They are simultaneously heart breaking and enraging. Yet, as I said back then, like all bullies, they specialize in picking on people without the means to fight back. It's easy to for them to take $5000 and make you spend $20000 to get it back - most people give up and write off the loss. Which is what they're counting on, of course. It's easy to steal $2000 from someone out of state who only has $2000. To get a remote chance of getting it back they need to go back to California, hire an attorney and go to court. All of those steps make more money for California in the form of the attorney's income tax, court fees, and taxes on whatever hotel or other place the plaintiffs live while fighting. I bet the number of corporations with a full staff of lawyers that have faced this treatment is zero.
Just victimized last week. I live in Oregon. Moved from Ca late May, 2000. Never received anything from them. Never had notice of a lien. They told me that because I held a Real Estate License in the year 2000 and didn’t file a CA return in 2000 that they assessed me a tax based upon the average income of a real estate professional in CA in 2000. That average income was $45,000 ! They took my SS, my little savings account, and part of the support from my husband. I am frantic ! to say the least.
Me too! Last week the CA FTB stole almost $2000.00 from my bank account here in Colorado. They took every last penny. I moved out of Southern California in 2006 and did not notify them so according to them they can charge me with not filing a return for 2007 and take my money. I have faxed them proof I didn’t live there but they don’t respond and you can’t reach them by phone unless you have two hours or more to be put on hold. If someone told me this happened to them before it hit me I would have doubted this is legal.
There are no words for the level of scum bag government this sinks to. This is the worst of Banana Republic thuggery.