Executive and Advocate Services MS A381 Franchise Tax Aboard PO Box 157 Rancho Cordova, CA 95741 Many of our cases of innocent spouses in California will end up on appeal or end up with a consultant-auditor. The important thing is number one, you want to get all your facts directly at the beginning of your innocent spouse application. The FTB manages two of the state`s major tax programs: income tax and corporation tax. Your debts may be related to your individual income taxes, or if you own a business that operates in California or “deducts income from sources within the state,” you may be liable for a deductible tax or corporate tax. A successful mitigation agreement with the Tax Board franchise requires good information and careful preparation. With the exception of the above public registration statement, all other comparative information is considered confidential. In order to ensure confidentiality, the FTB and the taxpayer sign a confidentiality agreement prior to negotiations and any information other than the statement contained in the public registration statement cannot be used in subsequent court proceedings of an administrative authority or jurisdiction and cannot be disclosed to third parties unless the law requires that they be disclosed in certain circumstances. The impact of an unpaid credit from the California Franchise Tax Board (FTB) can be severe, especially for a small entrepreneur who has everything to lose. The law allows FTB to aggressively pursue the payment of tax debts through a series of involuntary unbreakables. It`s not just unpleasant, it can often be financially devastating. They will likely waive certain tax benefits such as statutes of limitations for investigations and collections. An OIC will probably shut down the clock and leave you open for future checks. They may also be asked to enter into a security agreement with the FTB.
In a guarantee agreement, you must promise to pay FTB a percentage of future income above a certain threshold for a period of five years. These are all factors that answer the question of whether or not you have a relationship with your franchised tax administration lawyer. If you can answer in the affirmative with each of these questions, then I think you are more than 50 percent of the way to finding a tax franchise lawyer that you can trust. Yes, 50% That`s the importance of the report, I think. As a general rule, the FTB does not require a guarantee agreement if the taxpayer has fixed income securities or has only limited potential to increase income. On the contrary, I am talking about more complicated things where a duty-free tax lawyer can really make a difference. While I`m definitely available to help you with any franchise tax card issue (see my California State Tax Attorney Services page), I realize that not everyone is familiar with the virtual lawyer model and I wanted to take the opportunity to provide you with the things I think are really important when hiring a good tax-franchise lawyer.