The Evaporation of Money, Part II

[figmo]

I just got off the phone with the bank. They say it's the CA Franchise Tax Board (FTB), aka "the state income tax people," putting a levy on my account.

My income taxes for 2000-2002 are still being worked on. I did a lot of day trading in those years, and E*Trade lost some of the transactions.

The FTB thinks I owe over $650k. My accountant says it's closer to $60k, which, while still alot, wouldn't kill me.

My next call out is going to be to my accountant. I called him last night and got his voice mail. OTOH, I've got to be at the station in just over an hour (I'm filling in this afternoon).

The bank says nothing can happen before Tuesday because Monday's a state holiday. The lady at the bank says there's only one good thing: They can't use this order to suck any more funds, so any further deposits will stay there -- at least till they put together Yet Another Levy.The FTB guy on my case starts work at 7am; the bank's Levy Dept. doesn't start work till 9am. You can guess what my Tuesday is going to be like.

Meanwhile, I'm stuck with only the money in my wallet and in my piggy bank till at least then.

Comments

[mactavish.livejournal.com]

$60k sounds painful, too. :( I'm sorry this is happening.

[patoadam]

IIRC, the information E*Trade sends to the IRS tells them the total amount you received from all your stock sales, but doesn't say how much you paid for your stock purchases. So how can the IRS or the FTB have any idea what you owe?

You may be better off filing incorrect returns now and amending them later when you have more complete information, depending on what the incorrect returns say, of course.

Please see my comments on your previous post if you haven't already.

[patoadam]

By "incorrect" I mean "based on the best information you currently have". I am not advocating intentional falsification of tax returns.

Have you tried explaining to the FTB that you really don't owe what they think?

[figmo.livejournal.com]

Both I and my accountant have done so, which is what makes this so odd.

[figmo.livejournal.com]

You've nailed the problem on the head. The tax collectors only have records of sales and not of purchases.

I have soooo many of them that yes, E*Trade lost a few in the process, and when they went to online delivery, more got lost. A few also got lost in my paper records, but nowhere near as many.

I have a call placed out to my accountant as I type this. I don't know when I'll talk to him, as I'm at the radio station and it is a Saturday and a three-day weekend (he might be on vacation).

[hitchhiker.livejournal.com]

That sucks, but at least it's displaying some semblance of comprehensibility.

[it-aint-easy.livejournal.com]

I'm really sorry to hear about this Lynn. Hugs and support for you.

Sounds like leaning on your accountant to file the back returns should be a high priority.

[randwolf.livejournal.com]

Ow. Sympathies.

[lysana.livejournal.com]

Ouch. Best of luck getting that resolved. I have nothing more than good vibes for you, I'm afraid... your situation is beyond my ken.

[rosefox]

Those are the same brilliant folks who docked hopeforyou's paycheck, without informing her, for a year where it turned out they owed her money.

Best of luck getting it all sorted out.

[drewkitty.livejournal.com]

You know, working with what they think is a $650K tax liability, just levying a few accounts is a polite (!) way of getting your attention. However, throwing it down on a Friday with a bank holiday on Monday seems rather designed to be spiteful and mean.

If they really wanted to mess with you, they'd have garnished your wages by now . . . be prepared when they unleash this option on their part.

There's no point to yelling at or otherwise pissing off the FTB guy. Be professional, polite and firm in stating your facts. Carefully document every interaction with him. If he is rude or unprofessional, document the incident as part of your running file when you complain to the Taxpayer Advocate.

I would strongly advise you to NOT deposit any more checks into your bank account until this mess is resolved. If you do and the money disappears, don't blame me.

I've got to wonder how much you're paying the accountant and if the accountant is worth what they're being paid.

They should be able to file a return based on the information at hand while gathering information for an amended return. If they don't know how to do this, they're not much of an accountant.

In the meantime, hang in there.

[figmo.livejournal.com]

If they really wanted to mess with you, they'd have garnished your wages by now . . . be prepared when they unleash this option on their part.

Um...they already have. If I work more than two shifts in one pay period at the radio station, I don't see all the money coming to me. They also attached the money coming from a now-defunct contract that ended in December of last year. The guy from the FTB claimed he was going to have the garnish temporarily lifted from the radio station, but that never happened.

The reason the accountant hasn't yet filed the return is there are records E*Trade just plain lost. I have now learned, the hard way, why online delivery of documents sucks. I have no confirmation of some trades because they lost them. (This happened to someone I used to work with at BroadVision, so I know it's not just me.) Supposedly even the guy from the FTB groaned in understanding when my accountant said "E*Trade" to him.

When my accountant finally does my returns, he's going to have to explain why he can't account for some of the purchased stock that was sold, and it'll be easier if he has all his ducks layed out in a row, so to speak.

[drewkitty.livejournal.com]

If you're already being garnished, this all makes a lot more sense.

The reason the accountant hasn't yet filed the return is there are records E*Trade just plain lost. I have now learned, the hard way, why online delivery of documents sucks. I have no confirmation of some trades because they lost them. (This happened to someone I used to work with at BroadVision, so I know it's not just me.) Supposedly even the guy from the FTB groaned in understanding when my accountant said "E*Trade" to him.

When my accountant finally does my returns, he's going to have to explain why he can't account for some of the purchased stock that was sold, and it'll be easier if he has all his ducks layed out in a row, so to speak.

Easier for the accountant? I admit to some puzzlement why you are willing to tolerate considerable problems and inconvenience to make life easier for your hired help. What on earth is he waiting for? If the documents are lost, waiting will not recover them. The rest is just tedious documentation of which trades were not accounted for properly. It's work and you're paying him to do it. If he can't or won't do it in a timely manner, fire his ass and find someone else who can.

One approach might be an affadavit spelling out that you were a day-trader and stating which stocks you actually owned at time "A" -- where this time is after the misplaced stock trades.

Good luck.

[randwolf.livejournal.com]

Tax officials usually ask for huge amounts of money, but can often be bargained down. Get your accountant on the job and find out what they will really settle for.

[khaosworks.livejournal.com]

I hope it works out quickly. I wish I was in a position to offer anything to tide you over until it does.

[aliza250.livejournal.com]

In a pinch, documentation can be as simple as a sheet of paper saying "to the best of my knowledge, I performed Transaction X for Y amount on day Z."

I had been unemployed for several months when the IRS sucked my only substantive bank account down to $100. I feel your pain...

[cellio]

Ouch. That sucks!

I agree with the comments that your accountant needs to be doing a lot more, now, on your behalf.

I hope you're able to get this straightened out quickly.