Embezzlement – Page 3

November 26, 2021February 11, 2024

Second Legislative Change Request: Close the Married Loophole

Dear FTB Advocate, FTB Board of Directors, Governor Newsom, and Legislators:

I am requesting that legislators immediately change California State law to recognize married couples as one tax entity in accordance with the guidelines set forth by the IRS.

The IRS treats married couples as a single taxpaying entity from the moment the couple notifies them of marriage until the couple notifies them that the marital status has changed.

However, FTB considers all individuals as unmarried. Each year, after a married couple files that year’s return, FTB updates their records with proper marital status for only that particular year. I believe that:

1. FTB utilizes this loophole in the system in order to falsely impose penalties and fees via policy and procedure violations

October 8, 2021November 6, 2022

How FTB Covers Up Their Accounting Irregularities

As you all know, I filed a Motion to Compel on Specially Prepared Interrogatories, Set #1: Clarification of Policy and Procedure. I also prepared a second set of Interrogatories to address FTB’s accounting irregularities.

And I prepared a set of documents called “Requests for Admissions” to help clarify the methods that FTB uses to cover up the assorted policy/procedure and accounting irregularities that were addressed in the Interrogatories. Here are the questions. Many of the questions refer to attached documents. Here are documents pages 1 – 18 and 19 – 35.

September 19, 2021December 22, 2022

Proof of Accounting Irregularities

As you all know, I filed a Motion to Compel on Specially Prepared Interrogatories, Set #1: Clarification of Policy and Procedure.

I also prepared and submitted to a second set of interrogatories to FTB, called Specially Prepared Interrogatories, Set #2: Accounting Irregularities. Here are the questions. Many of the questions refer to the attached evidence, and specify which page of evidence to look at. Here are evidence pages 1 – 18 and pages 19 – 36.

February 10, 2021August 25, 2024

FTB’s 8 Schemes To Overcharge Taxpayers

For those that prefer video, here is a 12-minute speech that I made to State Controller Betty Yee via webinar in December 2020, which sums up the info below. We’re also working on a documentary series exposing the corruption.

The over-simplified explanation of the schemes that I got ensnared in is that the Franchise Tax Board does not apply the money that you send them to your account right away. Then they charge you penalties for “paying late.” Then they over-charge interest on these penalties.

But you have to understand that the reason that they’ve been getting away with their criminal activities is because tax law is complicated, and they work the complex nature of the laws to deceive the public on what the laws actually say.

February 10, 2021December 22, 2022

My Rebuttal to FTB’s Response to My 2020 Annual Taxpayer Bill of Rights Request

Here is FTB’s Response to my 2020 Annual Taxpayer Bill of Rights Requests. Here is the rebuttal that I wrote in which I detail the following:

The Interim Taxpayer Rights Advocate, Chris Smith, committed multiple counts of collusion to cover up criminal activity by misrepresenting what the law says about FTB’s practices of withholding estimated tax payments from the taxpayer’s account .

September 4, 2020December 22, 2022

CA Supreme Court Accusation Filed Against Franchise Tax Board Employee for Covering Up That FTB is Overcharging Taxpayers

I have caught California’s income tax agency, the Franchise Tax Board (FTB), running multiple schemes where they embezzle taxpayer’s money, then impose penalties which would not had been imposed had the money not been embezzled. The false imposition of fees is the crime of racketeering. I’ve also caught them overcharging interest.

I have filed an Accusation in the California Supreme Court in which I detail how the schemes work, show the relevant legal codes that proves they are illegal, and then detail how FTB falsely makes these unlawful practices appear to be legitimate. I also call out the administrative court judges at the Office of Tax Appeals, as well as the California Bar Association, for their roles in covering up the criminal activities.

August 26, 2020December 22, 2022

CA Supreme Court Accusation Filed Against Franchise Tax Board Employee for Covering Up FTB’S Criminal Activities: Embezzling Estimated Tax Payments, Racketeering Taxpayers & Overcharging Interest

I have filed an Accusation with the California Supreme Court against Eric Yadao, who is employed by the Franchise Tax Board as an attorney (part 1, part 2).

An Accusation is basically a request to revoke Mr. Yadao’s license to practice law because of unethical and/or unlawful behavior.

In this Accusation, I clearly detail that FTB is running multiple embezzlement and racketeering schemes, and that they are also overcharging interest. On pages 5 – 20, I detailed how the schemes work. On pages 4 – 16, I listed the legal codes that these schemes violate and why. On pages 23 – 38, I showed exactly how Mr. Yadao covered up FTB’s unlawful activities via improper redactions, improper omissions, false arguments and false statements..

February 17, 2020December 22, 2022

Summary of FTB Crimes and Update on My Efforts To Stop Them

Summary: I have been trying to get the Franchise Tax Board to end some blatantly illegal business practices. The basics are:

1. The FTB is illegally putting your estimated tax payments into a general slush fund instead of into your account. The money isn’t put into your account until you file your return for that year; basically, the State of CA is temporarily embezzling your money. If you file late, they harass you for payments that would not be owed/impose penalties that would not have been assessed had the money been applied to your account in accordance with the law.

February 17, 2020December 22, 2022

Rebuttal to FTB’s Response to My Annual Taxpayer Bill of Rights Request

FTB’s response to the 13 policy change requests that I made is short, terse and riddled with problems.

Item 1: End Policy of withholding estimated tax payments made via credit elects

FTB wrote: The Franchise Tax Board previously addressed this issue in the 2018 Taxpayer Bill of Rights response to you, dated January 25, 2019.

Rebuttal: In my written submission, I clearly detailed how they had committed one count of collusion to cover up racketeering by misrepresenting what the law said in Commissioner V Lundy. I also re-sent them a copy of the 2018 letter to Governor Brown in which I cited several more times that the FTB committed the crime of collusion to cover up racketeering on this topic. In this response, FTB did not dispute my interpretation of the assorted laws they falsely cited, nor offer any valid laws.

February 17, 2020December 22, 2022

I Have Filed Suit Against FTB in Superior Court of CA!

I lost my Office of Tax Appeal case. While I was disappointed, I was not surprised. Two different attorneys had told me that the OTA almost always sides with the FTB and that hiring an attorney would probably be a waste of money. That is why I originally went with the free attorney from the TAAP program. However, as soon as the TAAP program was moved from the Department of Fee and Tax Administration to the FTB, TAAP withdrew representation. What a surprise. So, I represented myself for the rest of the case.

The OTA verdict that was so blatantly corrupt that it was shocking. I just could not let the FTB/OTA get away with their criminal activities. The OTA is an administrative court, and Californians have the right to appeal administrative court rulings in Superior Court of CA. I went lawyer shopping and found that it would cost a minimum of $30,000 to get my $15,000 in penalties, fees and interest back. The lawyers I spoke with also told me that the FTB is retaliatory and will deliberately run up attorney costs with unnecessary extra legal work. And since I have pissed off the FTB in a big way, it would likely cost me as much as $100,000.

So I decided to act as my own attorney. Here is the brief. In my humble opinion, it is really good. It clearly lays out the FTB’s three racketeering schemes, as well as the unethical and underhanded tactics that the OTA uses to cover up FTB’s criminal activities. I am SO PROUD of myself!!!!! 🙂

I have forwarded this brief to the FBI, CA Auditors office, the FTB’s Board of Directors, Governor Newsom, GovOps, and everyone on the Senate and Assembly Tax Committees . Hopefully, it gets some traction.