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California IRS question.

BD

Legendary Member
Joined
18 September 2005
Messages
5,804
Location
Southern California
I didn't do my taxes the last three years till last month because my business wasn't making enough money for me to deal with a CPA. However, a friend turn out to be a CPA and did my taxes for me last month and I had it all sorted away... At least that's what I thought.

The state sent me a letter two weeks with a bill... Saying that I own no taxes, but a collection fee of $160 bucks on taxes I didn't owe. I'm serious, the letter said I owed $0 dollars, and my balance is $160 in collection fee.

Any accountant/IRS here know what that's about?
 
Take it to your CPA who did your taxes -- he should be able to explain it, and he has access to all your information.

As far as I know, even if you don't make any money in your business, you still need to file, and perhaps the fee is a penalty for not filing for three years. But I would defer to your CPA.
 
You're going to argue with the IRS over $160.00?
I've gotten parking tickets for more than that.

Pick your battles wisely.
 
I don't mind paying it, just trying find out why they did it. The tax filing was done and the California income tax was not owed, but the letter stated there is a $160 collection fees for unpaid tax, and again, the balance of the tax was zero dollars because the income was not high enough to have any California income tax.
 
This sounds like CA state tax / fees, not IRS fees.
Yup. The Internal Revenue Service is the department of the federal government that collects federal taxes from taxpayers. I believe the corresponding department of the California state government that collects California state taxes from taxpayers is the California Franchise Tax Board. You might be able to do some research on their website; government websites often have a lot of detailed information if you look for it there. Things I would be looking at are the instructions for the forms you filed, to see what the requirements are for filing a return (like if you have so much revenue, or any other requirements).

You can also try contacting them back. Letters usually have a phone number or e-mail or postal address for questions.

Or, as noted above, you can ask your accountant.

I'm with Bob, sounds like this might be a penalty for not filing. But that assumes you were required to file, and if you weren't required to file, maybe there shouldn't have been a penalty.
 
I'm with Bob, sounds like this might be a penalty for not filing. But that assumes you were required to file, and if you weren't required to file, maybe there shouldn't have been a penalty.

That's what I thought at first, but after going through the letter carefully, it clearly stated a collection charge.

I'll call them Monday.
 
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