New CALIFORNIA $5K Frivolous Return Penalty

[jcolvin2]

http://www.ftb.ca.gov/aboutFTB/press/20 ... e_44.shtml

Franchise Tax Board Advises Against Frivolous Tax ArgumentsReleased: August 17, 2009
Sacramento –The Franchise Tax Board (FTB) outlined several arguments that are widely established as frivolous, and advised that using those arguments to avoid paying taxes could result in a penalty.

The baseless arguments include contending that paying taxes or filing a return is “voluntary,” that tax returns can ignore all taxable income, or that filing a tax return violates constitutional protections against self-incrimination. FTB has adopted the IRS’ list of frivolous tax arguments, explained in IRS Notice 2008-14 and IRS Publication The Truth About Frivolous Tax Arguments.

Unpaid taxes and false tax returns both contribute to the annual $6.5 billion tax gap facing California. The State of California also spends considerable resources responding to frivolous tax arguments, putting a strain on other public services.

FTB does not expect to issue many penalties. However, it can assess a $5,000 frivolous submission penalty on a specific submission that includes material that:

Is based on a position FTB identifies as frivolous.
Reflects a desire to delay or impede the administration of federal income tax laws determined by the IRS or California income or franchise tax laws determined by FTB.
A “specified submission” can be one or more of the following documents:

A protest filed with the FTB.
A request for an oral protest hearing.
A request for an installment agreement or offer in compromise.
A complaint submitted through the Taxpayer Advocates Office.
FTB will notify the person in writing before issuing the penalty. Taxpayers can avoid the penalty by withdrawing their frivolous submission, in writing, within 30 days after the notice is sent. Otherwise, there are two ways to contest the penalty:

Request relief by sending FTB 626, Request for Chief Counsel to Relieve Penalties.
After paying the penalty in full, file a claim for refund within the statute of limitations.
For more information, visit ftb.ca.gov, and search for “frivolous submissions,” or call FTB at 916.845.7790, Monday through Friday, from 8 a.m. to 5 p.m.

[grixit]

Don't mess with California right now. We've been closing parks, cutting school programs, cutting social programs, issuing ious to workers, and Gobunah Ahnold hasn't had any raw steaks since May. Do something that there's a fine for and you'll be fined without mercy.

[.]

Next will be New York, Florida, Texas, Michigan

Not likely considering that we don't have an individual state income tax, one of the many reasons that I moved here in 1980 from the ice-box otherwise known as Minnesota.

The only personal tax return Florida once required was for the .05% tax on intangible assets over $250K single/$500K married, but even that relatively minor tax was outright repealed in 2006. Saved me some time and money.

Quite simply, it's not possible to file a frivolous personal state tax return of any kind in Florida as there's no such thing. They couldn't hop on the nail-the-frivolous-morons-for-$5K gravy train if they wanted to.

One of the benefits of having what is an effective prohibition of a personal income tax written into the state constitution and being governed by relatively conservative elected officeholders.

About the only thing California has in common with Florida other than illegal immigrants and a 3% annual limit on property tax increases is good weather. Their income tax policies aren't just wholly dissimilar, they're polar opposites.

[Gregg]

My own long held beliefs, which may or may not be true....

California = eating oranges
Florida = orange juice

California = left wing nuts
Florida = right wing nuts

California = hot young chicks
Florida = granny

and so on

[Lambkin]

Quite simply, it's not possible to file a frivolous personal state tax return of any kind in Florida as there's no such thing. They couldn't hop on the nail-the-frivolous-morons-for-$5K gravy train if they wanted to.

Another way to look at it: any return in Florida would be frivolous. I wouldn't put it past a loony tax protester to file a CTC return in Florida, Nevada, etc. Stranger things have happened.

[Arthur Rubin]

Next will be New York, Florida, Texas, Michigan

Not likely considering that we don't have an individual state income tax, one of the many reasons that I moved here in 1980 from the ice-box otherwise known as Minnesota.

Wasn't Dr. Dino convicted for (among other things) making frivolous property tax arguments?

[darling]

Wasn't Dr. Dino convicted for (among other things) making frivolous property tax arguments?

His conviction was purely for federal crimes.

He did have a run-in with his county for refusing to obtain a $50 building permit. Hilarity ensued.

[Brandybuck]

I always found it funny that TDs don't pay state taxes either. I've heard argument after argument why the 16th Amendment wasn't passed, but none at all about the validity of the California State Constitution. Argument after argument against the IRS, but none about the FTB. And I've even heard moral appeals to State's Rights as an excuse not to pay federal taxes, but yet... they still don't pay state taxes either.

[.]

I wouldn't put it past a loony tax protester to file a CTC return in Florida, Nevada, etc.

Who concocts their own form to not pay a tax that doesn't exist? TPs find lots of ways to waste their time, but even they aren't that dumb. And what if someone did? The FL Department of Revenue wouldn't know what to do with it. There wouldn't be any money involved. They'd probably have a good laugh and throw it away.

[Evil Squirrel Overlord]

Well, states like Minnesota doesn't care about your arguments against why you shouldn't pay taxes. They will simply take away your driver's licenses, garnish wages, and ring all their flags in gold braids. You can cry all you want, but you'll have to take them to court.

[Joey Smith]

I always found it funny that TDs don't pay state taxes either.

Because it isn't about taxes. The average TP doesn't pay their credit cards, alimony or child support either. They are just deadbeats who don't believe in paying for anything, and their de-tax arguments are simply justification for a deadbeat course of conduct that they have settled on already.

It's part and parcel of why most TPs are also anti-social or severely societally dysfunctional; they don't understand true concepts of community or responsibility.

[Pottapaug1938]

I always found it funny that TDs don't pay state taxes either.

Because it isn't about taxes. The average TP doesn't pay their credit cards, alimony or child support either. They are just deadbeats who don't believe in paying for anything, and their de-tax arguments are simply justification for a deadbeat course of conduct that they have settled on already.

It's part and parcel of why most TPs are also anti-social or severely societally dysfunctional; they don't understand true concepts of community or responsibility.

That's why, I like to say, if we allowed the TPers to come up with a new motto for the United States, it would be something like, "I doan' wanna DO that, an' you can't MAKE meI"

[grixit]

Disagree. The motto they'd come up with would be:

"Let me eat cake!"

[Gregg]

I'm kind of curious how this is gonna hit Weston White, isn't he in California?

[ASITStands]

I'm kind of curious how this is gonna hit Weston White, isn't he in California?

It probably depends on the timing of his California returns. Haven't heard anything on his state issues though I think the frivolous penalties on his federal returns are near collection.

Or should be. We were never sure just how many $5,000 penalties he sustained.

[LPC]

if we allowed the TPers to come up with a new motto for the United States, it would be something like, "I doan' wanna DO that, an' you can't MAKE meI"

Other possible mottos:

All for one, and that one is me.

E pluribus plural.

Ad astra per aspira. (Okay, that's a little subtle.)

Liberte, Egalite, Animosite. (I have no idea whether or not that last word is real.)

Nun, ich bin die Voelke. (I believee that's the actual quote; no changes needed.)

I only regret that I have but one country to give for my life. (Courtesy of Phil Ochs, who was referring to former South Vietnamese President Thieu.)

Semper Infidelis

Semper Frivolis

[Pottapaug1938]

Well whatever new motto the TP/TD crowd bestows upon us, it would always have to be delived in the Official Tone of Voice -- the whine of a petulant child.

[Quixote]

I'm kind of curious how this is gonna hit Weston White, isn't he in California?

It probably depends on the timing of his California returns. Haven't heard anything on his state issues though I think the frivolous penalties on his federal returns are near collection.

Or should be. We were never sure just how many $5,000 penalties he sustained.

No worries for Weston. According to the latest Losthorizons News, California is among those states that "have now acknowledged the truth about the law as revealed in CtC, and have issued complete refunds accordingly!" That could explain California's budget crisis.