Legislative Changes – Page 2

December 4, 2019December 22, 2022

Text of Speech I Made at the 2019 Annual Taxpayer Bill of Rights Meeting on December 3, 2019

My name is Christine Grab. I have 13 requests.

1. End the Policy of Withholding Estimated Tax Payments Made Via Credit Elects Until the Taxpayer Files a Return.

This policy violates R&TC 19363, which in simple English says that no matter what date you filed the previous year’s return, the credit elect payment must be applied on tax day, which is usually April 15th.

The FTB does not apply these payments in accordance with the law. Instead, the FTB puts the credit elect money into “suspense,” which is a fancy word for the general slush fund. The credit elect money does not get moved from the slush fund until the taxpayer files that year’s return. The FTB claims this policy is in line with federal practices, but that is a lie; the IRS does not withhold payments made via credit elects.

Demand Notices are only sent to taxpayers whom the FTB believes have underpaid their tax liability. The accompanying Demand Penalty is a crippling 25% of extra additional taxes beyond what the taxpayer actually owed.

By withholding the credit elect payment, it appears that the account was underfunded and thus a Demand Penalty is assessed. However, had the credit elect payment been applied in accordance with the law, the account would not have been underfunded and the Demand Penalties would not have been imposed.

November 19, 2019September 28, 2023

California’s Unlawful Schemes to Collect Extra Income Taxes From Taxpayers

Summary: I have caught the Franchise Tax Board, California’s Income Tax Collection Agency, utilizing an assortment of unlawful practices to scam extra tax money out of people (Section 1). I have been trying to put a stop to this government corruption (section 2). If you’d like to help me, I have suggestions at the bottom (section 3).

Both former Governor Brown and current Governor Newsom are actively protecting these schemes, as are State Controller Betty Yee and an assortment of other legislators.

Here is a video of me giving an 8-minute speech to legislators in December 2018, asking them to end some of these schemes. Since I was limited to only eight minutes, I couldn’t address all of the schemes that I’ve found. In the video, I flat out accused them of racketeering, along with other assorted violations. Even though they had more time to speak, the FTB only gave a 2-minute response. Susan Maples only responded to two of the eight items that I brought up, and Jozel Brunett gave a blanket statement that FTB is not doing anything unlawful.

The FTB’s written response to my speech is here: https://www.ftb.ca.gov/about-ftb/meetings/taxpayer-bill-of-rights/2018_Grab_Response.pdf. This response is full of legal improprieties – so much so that the Taxpayer Advocate refused to sign it when I pointed out that her signature was missing.

November 16, 2019December 22, 2022

PSA — Do You Have Any Ideas For New State Legislation? The 2020 Cycle Has Started — Now Is The Time To Talk To Your Legislators

In California, we each have two State Legislators that represent us on State matters — one is our State Senator and the other is our Assemblyman. If you don’t know who yours is, you can find them here

The State Legislative cycle goes like this: Mid-September through December, the legislators take suggestions from their constituents and mull them over. They take the ideas that they like best and they draft legislature that they introduce in January. Then from January through September, all the legislators debate the various bills that were introduced in January. At the beginning of September, all the bills get final votes. And then the cycle starts again!

So if you have any ideas about new legislature that you’d like to see enacted, or changes to be made to existing legislature, now is the time to contact your representatives.