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There is a proposed technical corrections bill floating around, but it isn't expected to be to be passed until December. Supposedly a fix for this problem is not currently included, because the politicians don't want to admit that they made any mistakes ! I am shocked, shocked I tell you

Over 19 years doing this as a sole proprietor and I have sent 2 accounts to collection - which was ineffective as well. We "usually" won't allow the tax return to leave the office, physically or electronically, until the bill is paid. But there's always someone who somehow takes advantage, and they are the ones you will never see again anyway. Never lost sleep over losing a client, really....

GGRNY, I agree with what the others have said. I suspect that the payroll department of the company did not set up an employer account with Georgia, and therefore reported all the employee wages on their California tax return. (Just FYI - the Franchise Tax Board collects income taxes, the Employment Development Department collects payroll taxes, just in case you need to ever call again). I think the employer really screwed this up, and the way to fix it is for the employer to amend their DE9 (which is the CA equivalent of the 941). If I am correct, and the employer will not amend the DE9, your nightmare is just beginning. The FTB will have a record of wages earned from the employer DE9. They are going to want a tax return. If you don't file it, they will assess and collect via any means possible. If you do send in a return and it does not match the wages reported on the DE9, you will get a letter and a demand for payment of taxes. If you send them a letter in response, it will not be read. If you want to file a power of attorney to represent, you have to sign up with the state for access to the website, and then it takes a minimum of 30 days for the FTB to approve your POA. Then you get to make the phone call that will probably not be answered. And if you are so lucky as to get through to a live person, they will not be helpful or courteous. They will start by asking for bank account information on your client. Your client needs to get with the payroll department and get this fixed before the end of the year. Sorry to be the bearer of grim news. I have lived and practiced in this state for too long to expect this will come out well for your client. Tom Modesto, CA

Hard enough for him to remember his name!

Here is my suggestion....Take a look at how much the rental income was from the management company and then send your client a bill for that amount for cleaning up this monumental mess they created. They will fire you, and you will not have to worry about it, or they will pay you and you will be a happy worker. Win - Win baby!!!! Tom Modesto, CA

Thank you JKLcpa -- that article is EXTREMELY clear as to how this situation works. I've added it to my files as well. Big time thank you for the additional information.

Exactly. CA operations on a "source rule" for compensation of nonresidents. I was off looking for a good link for you and found one that I'd posted a couple of years ago. GGRNY has the answer, and for anyone else, here is the article: http://www.sangerlaw.com/Articles/NONRESIDENTSWORKINGREMOTELYFORCALIFORNIABUSINESSES.pdf Here's another page from that law firm that has a few other articles on CA compensation issues for nonresidents too: http://www.sangerlaw.com/Articles/

Just got off the phone with the Employment Development Department (recommendation by the Franchise Tax Board as they did NOT know the answer to this question.) Luckily the EDD did! They referred me to this publication de231d: https://www.edd.ca.gov/pdf_pub_ctr/de231d.pdf Then she explained that since the services were not performed IN California, nor was the employee a resident of California, the employee was not liable for California state taxes and should NOT have W/H being taken out. Hope this helps someone else down the line!

Congress has cut their budget so much, they no longer have the resources to perform basic functions. They even sort CP2000s by dollar amount and only send out the number they can handle. I haven't seen a CP2000 for less than 1,000 in the past two years.

What a pathetic farce. My expectation for 2019 season was a gradual decrease in my workload. Good luck on that .

BINGO! And why would anyone with common sense design a two half-pages form instead of a one page form? Answer: just so some politicians can say 'postcard'. I need to meditate to lower my blood pressure.

I do not transmit, nor give any of my work to the client, until paid in full. I accept all types of payments. April 15, comes the same time each year. They can't do the grocery store, electric company, clothing stores or restaurants that way. No tickie, no laundry. PERIOD.