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.

March 18, 2021February 11, 2024

How To Figure Out If Franchise Tax Board Overcharged You on Interest

I filed a Federal Criminal Complaint against Franchise Tax Board for Overcharging Interest. My goal is to find fellow taxpayers who have also been overcharged interest so that it can be a Class Action Criminal Complaint. So please, check to see if you have been overcharged interest. If you were overcharged and would like to join in on the Federal Criminal Complaint, please email me at: FTBFighter at protonmail dot com (I wrote it like this to avoid spam bots).

Step #1: Send a letter requesting copies of your Amortization Schedules.

This is a record of how they calculated the principal balance, how many payments you made, how the payments were applied, and how much interest was charged in the interim between each payment that was made.

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 .

February 9, 2021December 22, 2022

FTB’s 4 Schemes to Overcharge Interest

In response to the requests for documents that I had made in October 2020, FTB did provide amortization tables showing how they calculated the interest that they charged us. I went through the amortization schedules line by line and caught FTB overcharging interest via four different mechanisms:

1. FTB’s accounting system seems to systematically add small amounts of excess interest.

2. FTB staff can apparently manually override the system to artificially inflate interest due. (In 2018, I’d caught another instance of this, as well).

February 9, 2021December 26, 2022

Motion to Compel Further Response to Demand for Documents filed 12-15-2020

On December 15, 2020, I filed a Motion to Compel Further Response to Demand for Documents filed 12-15-2020 with San Diego Superior Court regarding the case that I have pending against FTB for a refund of penalties, fees and interest for tax years 2011, 2013 and 2014. Here are pages 1 – 21 and pages 22 – 42.

Key Points Contained in Motion:

There are 5 line items on FTB accounting ledgers that I believe are fraudulent: 2 payments that show up as refunded even though they were not refunded, and 3 bills that I believe never existed (see pages 9, 11, 12, 21, 25).

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.

September 4, 2020December 22, 2022

Why The OTA Opinion in My Case Was Blatantly Corrupt

When a taxpayer believes that they have had penalties, fees and interest improperly imposed on them by the Franchise Tax Board, the first step is to request a refund. Refund requests are almost always denied.

The next step is to file an appeal in the Office of Tax Appeals, which is an administrative (specialty) court that deals solely with tax issues.

If OTA denies your refund request, you can then file a trial del novo in Superior Court. In English, that means that the Superior Court judge will look at this as a new case altogether, not simply as an appeal of the lower court’s decision. (More info on the process in FAQs)

I had been warned by two different tax attorneys that OTA usually sides with FTB, so hiring an attorney would be a waste of money.

I thought I had made a strong case for why I should get my money back with my Brief and Oral Arguments, so I was disappointed, but not surprised, when I lost. The Opinion (aka verdict) for my case was so blatantly corrupt that it was shocking.

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.