BulldogTom

The IRS is pretty easy to deal with on this matter. I am aware that they are usually reasonable. California, on the other hand can be a bear to deal with, but luckily, I got a very pleasant agent who was able to look up and identify the payment. The phone number I used was the Practitioner Hotline right off the FTB website. Here it is so you don't have to look it up. 916.845.7057 Tom Lodi, CA

I am aware of that. My real question, which was apparently not worded well, should have said: "Is there a form from the state of CA that I would need to produce for the client in order to request the refund?" If the payment was applied to 2007 or some other year, I would assume that an amended return might be needed, and if it was not applied to any year, a specific form might be needed. I was looking for such a form and not finding it, and not knowing what year the payment might have been applied to without speaking to the FTB, I was confused. I tried calling twice but the state was busy and told me each time to call back and hung up. Hence, my poorly worded question to this board asking if someone might know the proper procedure for making the request. Thanks for your help in pointing out that a letter would suffice. Tom Lodi, CA

Just spoke to the FTB and that was what they said. It was sitting there just waiting for the letter to arrive. Fax over a letter and they will send the money back. Tom Lodi, CA

This has never happened to me, and I can't get through to the FTB to find out how to correct it. Taxpayer had a large balance due to the IRS and a small refund from the state of CA. Somehow, they wrote a check for over 7K to the FTB instead of the IRS and mailed it to the FTB. The notice from the IRS for the balance due tipped them off that something was wrong. The client is Russian and speaks very little english. His son was my interpreter. I don't know how this got messed up, as I handed them the payment voucher for the IRS with the tax return when it was completed. How do I get the money back from FTB? The payment is not attached to any tax return (they did not put a year on the check). I don't think I should file an ammended return, but I don't know of any other way to make a claim for the money. Any help is appreciated. Tom Lodi, CA

Perhaps the best way to structure the sale is to have one sale of both parcels, and to then allocate the sales price between the farm and the home. While the IRS can challenge this if it appears unreasonable or contrived, an arms length transaction is fairly good evidence of the fair market value of the property sold. So, if the contract says the purchase price is (just and example) 1 million, and the allocation per the sales agreement is 300K for the farm and 700K for the home, and what constitutes the home is spelled out in the sales contract (only the portion that was used as the main home of the taxpayer), you should be in a defendable position. I would not be too agressive with the allocation, but arms length, written transactions are a good piece of evidence. Just a thought. Tom Lodi, CA

C Corp (closely held) has a deferred comp agreement with a key salesman that cliff vests after 5 years. The yearly accruals are unfunded and paid out in 5 annual installments after the five year vesting period. I am thinking this is a note in the financial statements until the vest. On the tax side, I think it is income when paid to the employee and deductible at that time to the corp. Any problems with this treatment? I am not an expert on FASB pronouncements, and I am sure they must have some guidance. Thanks in advance. Tom Lodi, CA

More truth in that than most would like to admit. Tom Lodi, CA

I am holding out for the famous "Companion Ticket". When I can fly on three days of the year with my spouse to 4 cities that I never wanted to go to, I will renew with ATX. Tom Lodi, CA

The guy who can re-wire the iphone to get it to work on sprint may order the ipod, but why, when he can re-wire the iphone and make it do everything an ipod can. That is a good one Mel. Tom Lodi, cA

National Champions - that little po-dunk school in a dusty little farm town in the middle of California is the best in the nation. I am so proud of my school and that team. I don't know if you caught the interview with the head coach, but he has 8 seniors on that team that will graduate with a degree. The left fielder is an Engineering major and carried a 4.0 in the spring semester while playing ball. Well done 'Dogs. Tom Lodi, CA

Never had that issue. But I love your tag line on your signature. Are you a former Coastie? Tom Lodi, CA Former Boatswains Mate 2nd Class, Bodega Bay, CA

I think you are being overly sensitive. You certainly are welcome here. I did not get the sense that you are unwelcome or unwanted in any previous posts. Don't feel bad about Jainen, he shoots everyone down. He really can be nice, but he is very precise in everything he posts, and points out sloppy wording and phrasing on all of us. It is actually very helpful to have him pick on you when you have a problem and need to see it from a different angle. It may just be coincedence that you have gotten a couple of posts directed at you. Don't stop posting, because it is the interaction between us that makes it so helpful to the rest of us. It is uncomfortable sometimes being the object of the learning experience, but it makes us all better. Tom Lodi, CA

4PM Pacific Time - ESPN - This one is for all the bones in the yard.

I beleive you could get those carryforwards. For example, they would be released if the property was sold. I think the real question is how the taxpayer treated the losses for CA purposes in the years of losses. Were California returns filed every year? Tom Lodi, CA

Could you argue that the disregarded entity payment was actually the schedule c payment of the individual, making the last day to file for refund on an individual return 4/15/08? I know it is weak, but it is the best I can come up with. Tom Lodi, CA

I spoke to the FTB last night and tried the scared routine. Lady was very nice in telling me that it was most likely not a valid excuse, but a doctor's note usually works. "Send in your letter, but don't get your hopes up." However, she said the Advocate would be more willing to listen if there was a hardship involved and the letter to the advocate included a detailed financial position. I think I will try both (same letter, two addresses) and see if I can get either one to bite. Tom Lodi, CA

Bonnie, Hope you dry out soon. But a day off would do my 'dogs some good. Like in the Bull Durham movie when they created the rain out to get a night out? You know what is funny, I just figured out what your screen name means. I have always thought you were in like Boston, or someplace else in New England. It just dawned on me that the NE is for Nebraska. What a Doh! moment for me. Thanks for your kind words about my 'Dogs. Tom Lodi, Ca

I thought they had game one last night when they went up three. As soon as they brought in the closer, I told my wife we were in trouble. He had been in the last two days, and went 2 innings in one of them. No matter what, I am very proud of my school. They have done well. Now, could you do something about Orel Herschieser? Like make sure he does not get to the ballpark. I have never heard a more one sided, condescending announcer. At one point he actually said that since the Fresno State players will not have long major league carreers, they are enjoying the series more than Georgia. What a jerk. Tom Lodi, CA

Is that what is known as "high level accounting" in your office? I keep threatening to put a sign on my ceiling that says "There are no numbers up here, so I hope you are praying for God to give you divine inspiration." And of course, the answer is always SALY - same as last year!!!!! Tom Lodi, CA

Not pro bono on this client. I have been paid up front for the tax returns. That is why he can't pay the penalties. Tom Lodi, Ca

I know that one (or a variation of it) normally works at the federal level, but CA uses the reliance on a professional example specifically as a cause that will not be granted abatement. I also know that the IRS will sometimes allow the "I'm stupid and scared" excuse that goes something along the lines of, "Taxpayer was unable to file his 198X tax return due to a family situation and was so afraid of the enforcement powers of the IRS that he could not bring himself to correct the error. Upon retention of competent professional assistance, taxpayer has filed the originally delinquent return all subsequent returns. Please abate the penalty in the interest of effective administration of the tax laws of the United States." That is the tack I would like to take, because it is fairly accurate in most cases, and in this one specifically. Unfortunately, I can find nothing in the CA Revenue and Taxation code that will support it. Tom Lodi, CA

I am looking for some way to get the Failure to File and Failure to Pay penalties abated for my client. This is the guy who has not filed in 20 years. The penalty is very steep for 2004, tax due is $108, penalties and interest push it up to $381. Client has filed the 4 years they asked for, and I think there will be more auto generated penalties as they work these returns through the system. Client makes $12 per hour and gets 40 hrs per week. Does not have a lot of money to make the rent and car payments. There really isn't a reasonable cause, but I was looking for something along the lines of effective administration of the tax laws to try and get some relief. Any suggestions? CA taxpayer advocate is my last resort. I would prefer to try and work this out with FTB. Thanks in Advance Tom Lodi, CA

Congratulations JB. Wishing you a wonderful life together. Tom Lodi, CA

Rick, you need to get your spelling straight. Fresno State are the 'Dogs, and Georgia are the Dawgs. I am not sure what a Dawg is (it must be one of them southern things - perhaps KC or one of our other southern friends can enlighten me). The national media is now calling Fresno the WonderDogs - as in I wonder how the hell they got to this game. My 'Dogs have already won in my book. The next two games are just the icing on the cake. Tom Lodi, CA

Proud ... I am going out of my freakin mind. MY 'DOGS ROCK!!!!! Thanks for mentioning it. Tom Lodi, CA