Power of the State

The power of the State is compelling. With it, the State can get it's way pretty much anytime it wants.

When we filed our 2001 tax return--because of our move--we did not have a complete set of documents. Our intent was to file an amended return once the missing paperwork arrived. It never did so neither did we.

The following year we went round and round with the IRS about unreported income on the 2001 return, finally agreeing to pay the tax owed. Now the State of California, never to be denied it's precious tax dollars, wants it's share.

At the beginning of the month, a few short weeks after filing our 2005 returns, the Franchise tax board sent us an assessment for taxes due. We assumed they were referring to the '05 return and that such was a mistake so sent it off to our tax man to handle. A few phone calls later and it became clear they were talking about the 2001 return.

And here's where it's driving me up a tree...do they really think it's okay to send us a notice 4-plus years later after making zero attempts at notification in the interim? In my business, if I went back to somebody after 4 years and attempted to collect payment for a past-due balance, I'd be laughed at and wouldn't collect a dime.

Of course, I don't have the compelling power of the State behind me.