California State Income Tax?
On 5/28 I received a FINAL NOTICE demanding payment for income taxes to the state of California for 2004. In 2004 I was a resident of Texas. During that year I resigned from my employer and was hired back as a consultant. I was self employed but billed through a consulting firm located in California. I assume these are the earnings CA thinks they are entitled to? I have never been to that state. The letter stated to call them if I do not owe the taxes. That was a joke... the entire phone system is automated. Per my CPAs request I sent a certified letter the following day to explain the situation. On 7/3 I received a letter thanking me for my correspondence. It stated to allow 2 months for processing. I thought things were going to be resolved. Then on 7/7 I received a PAST DUE notice and that they have issued a tax lien against me. I will be contacting my CPA on Monday, but does anyone know something that I do not? Texas does not have state income taxes. However I paid federal income taxes on all earnings.
Public Comments
- Not me - as far as I know you have to be a resident of the state to pay state income tax - it's the same everywhere. Did you pay tax on the money in Texas? - if so send them your Texas tax return with the W2. That should be enough to get them off your tail.
- The income must have been reported by the payor as California Income. I suggest filing a non resident return showing zero California income. It's a pain but may be a quick clean way to make the computer happy. http://www.ftb.ca.gov/forms/04_forms/04_nr_short.pdf http://www.ftb.ca.gov/forms/04_forms/04_nr_shortins.pdf
- Call a California tax account. They can help you since they know the industry and local laws. http://www.officialtaxpreparation.com/California-Tax-Services.html
