Category: Accounting Fraud

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My Opposition to FTB’s Motion for Sanctions Dated 09-01-2021 and My Request for Sanctions

On September 1, 2021, FTB filed a Motion for Sanctions against me in a blatant attack of retaliation, harassment and obstruction of justice.

On March 7, 2021, I filed my Opposition to their Motion for Sanctions and my own request for sanctions against FTB for:

  • Violation of Code Civ. Proc., §128.5 and §128.7(b): Motion is Frivolous (page 30)
  • Violation of CA Rules of the Court 1.201: Failure to Redact Personal Information (page 32)
  • Violation of CRC 3.1348: Failure to Provide Discovery (page 39)
  • Chelsea Hubbard: Perjury, Withholding Evidence and Improper Redactions (page 40) 
  • Keith Swank: Perjury and Failure to Furnish Information (page 53)
  • Grace LeBleu: False Statements and Improper Redactions (page 59) 
Continue reading “My Opposition to FTB’s Motion for Sanctions Dated 09-01-2021 and My Request for Sanctions”
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Eleven (11) Requests for FTB’s 2022 Annual Taxpayer Bill of Rights Meeting 

Every year, the Franchise Tax Board hosts the Annual Taxpayer Bill of Rights Meeting, where constituents can make suggestions on how to change tax law and/or FTB policy and procedure to improve the system. FTB asks that you send them a written Request in advance, but it is not required; verbal Requests are accepted. Whether or not people can make a written request without speaking at the meeting is questionable. FTB let me do so in 2017, but others have told me FTB says that is not allowed.

Below is the written submission that I sent to FTB for the 2022 meeting. I participated in the meeting remotely; here is the video that I made of myself giving the speech.

Here is the text of the speech, which is shorter than written submission. The video of the full meeting is here, and I spoke from 14:35 – 19:45.

November 29, 2022

Franchise Tax Board Taxpayer Advocate Office

Email: FTBAdvocate@ftb.ca.gov. 

CC: FTB Board Members and Executives

Re: Eleven (11) Requests for Annual Taxpayer Bill of Rights Meeting

Hello Taxpayer Advocate Staff: 

Here are my eleven (11) requests for the 2022 Annual Taxpayer Bill of Rights Meeting. I’ve included the Board Members on this email, as well. Since I know most of you are too busy to read long letters, I have highlighted the key sentence of each item.

Continue reading “Eleven (11) Requests for FTB’s 2022 Annual Taxpayer Bill of Rights Meeting “
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Legislative Change Request #3 for 2023 — Repeal R&TC 19179(c)(2)

The legislative year starts at the beginning of September. From September to December, each legislator decides what they want to introduce for the next year. Below is a Legislative Request that I sent for the 2023 session.

November 29, 2022

Dear Governor Newsom Staff, GovOps Staff, Senate Governance and Finance Committee Members and Staff, Assembly Committee on Revenue and Taxation Members and Staff, and FTB Legislative Staff:

I request that you repeal Revenue and Tax Code 19179(c)(2) as this law is a violation of the California and US Constitutions. This law allows the Franchise Tax Board (FTB) to penalize a taxpayer $5,000 for exercising their right to Protest. This law directly violates R&TC Sections 21010 and 20102,  which guarantees the Right to Protest as a part of the California Taxpayer Bill of Rights. It is unconscionable that a law that allows the taxation agency to punish someone for exercising their rights was enacted in the first place. 

This issue goes beyond civil rights. The Franchise Tax Board sends notices threatening that the Taxpayer will be assessed a penalty of $5,000 if the Taxpayer does not withdraw his Protest or alter his return as preferred by the bureau. These coercive threats of penalty violate multiple federal criminal codes, including 18 USC §1512, Tampering with a witness; 18 USC §872 and §1951(b), Extortion; 18 USC §876 and §1341, Mailing threatening communications.

Continue reading “Legislative Change Request #3 for 2023 — Repeal R&TC 19179(c)(2)”
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Legislative Change Request #2 for 2023: Tax Agencies to Comply with Due Process Laws

The legislative year starts at the beginning of September. From September to December, each legislator decides what they want to introduce for the next year. Below is a Legislative Request that I sent for the 2023 session.

November 29, 2022

Dear Governor Newsom Staff, GovOps Staff, Senate Governance and Finance Committee Members and Staff, Assembly Committee on Revenue and Taxation Members and Staff, and FTB Legislative Staff:

I am writing to request that you enact a legislative change in the 2023 legislative cycle. 
In California, a creditor is required to prove to a judge that a debt is owed and get the judge’s authorization to implement a wage garnishment, bank levy or lien. The exception is the taxation agencies. I request that this loophole be closed, and that the taxation agencies be required to prove to an independent judge that a debt/penalty is actually owed prior to implementation of collection tools. 

The Franchise Tax Board has a proven track record of egregious procedural irregularities, including accounting irregularities and irregularities in the processing of Protests. These irregularities lead to the false imposition of wage garnishments, liens and levies (more details can be found in my other requests: Close the Married Loophole and Legislative Change Request #3 — Repeal R&TC 19179(c)(2)). Here is one example that I personally experienced:

Continue reading “Legislative Change Request #2 for 2023: Tax Agencies to Comply with Due Process Laws”
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Legislative Change Request #1 for 2023: Close the Married Loophole

The legislative year starts at the beginning of September. From September to December, each legislator decides what they want to introduce for the next year. Below is a Legislative Request that I sent for the 2023 session.

November 29, 2022

Dear Governor Newsom Staff, GovOps Staff, Senate Governance and Finance Committee Members and Staff, Assembly Committee on Revenue and Taxation Members and Staff, and FTB Legislative Staff:

I request that you 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 IRS of marriage until the couple notifies IRS 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 internal 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

2 FTB utilizes this loophole to unlawfully enrich themselves by demanding extra additional tax liability and penalty payments above and beyond what FTB knows — by its own records — is actually owed. 

3. This policy violates the 14th Amendment of the Constitution 
—

Continue reading “Legislative Change Request #1 for 2023: Close the Married Loophole”
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The Colossal Criminal Conspiracy Behind the IRS – The Penalty Scam by Roger (Buck) Knipp

Roger (Buck) Knipp wrote a book a while ago called The Colossal Criminal Conspiracy Behind the IRS – The Penalty Scam. He has just released an updated version of his book with a new section on the corruption at the California Franchise Tax Board.

Here is the blurb: “IRS” and “FTB” fraudulently “assess” $5,000 penalties in response to almost any return or document that they disfavor or don’t understand, and more if the target is married or tries to explain. Ironically, there are no enacted code sections or regulations permitting “frivolous submission” penalties on the average American. With the help of professional researchers and 6 years in law school, the author was ultimately able to penetrate the corruption and expose the Grand Conspiracy. The 75-page Verified Criminal Complaint in the book explains the actual written law and condemns bureau employees who unlawfully impose the penalty scam. Discover how victims are pushing back against the California FTB. Keep your liberty, rights, and property by fighting back with the words of the government’s own laws. Don’t read this book if penalty notices are welcome in your mailbox. There is a large new section on the FTB and a California criminal complaint added.

This book lays out the guidelines that we are using for our Federal Criminal Complaints. Order your copy from The Bookpatch.

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Ten (10) Requests for 2021 Annual Taxpayer Bill of Rights Meeting

This year’s Franchise Tax Board Annual Taxpayers Bill of Rights Meeting was held online on Thursday, December 2, 2021. Here is the five-minute speech that I made.

FTB prefers, but does not require, that you submit the requests in writing prior to the meeting so they know what to expect. There is no limit to how long a written submission can be, so my written submission was much longer and more detailed than the speech was.

Written Version of the ATBOR Requests

November 30, 2021

Franchise Tax Board Taxpayer Advocate Office

Email: FTBAdvocate@ftb.ca.gov. 

Fax: (916) 843-8330

Re: Ten (10) Requests for Annual Taxpayer Bill of Rights Meeting

Hello Taxpayer Advocate Staff: 

Here are my ten (10) requests for the 2021 Annual Taxpayer Bill of Rights Meeting.

  1. Close the Loophole That Allows FTB To Evade Due Process for Implementation of Collection Tools

Require that FTB appear before a Superior Court judge to procure a proper judgment in accordance with the laws of the State of California prior to implementation of Collection tools, including wage garnishments, levies and liens. Please see email dated October 23, 2021 for details. 

Continue reading “Ten (10) Requests for 2021 Annual Taxpayer Bill of Rights Meeting”
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My First Federal Criminal Complaint is Filed!

*Note: This post is in the middle of being reformatted. Please excuse the odd appearance.

I have filed the first in a series of Federal Criminal Complaints against assorted FTB staff for their various crimes. I believe that the majority of staff at FTB are good people “who are just doing their jobs.” Unfortunately, these job duties include bona-fide crimes. I believe that FTB staff will remain complicit until they are held personally accountable for their unlawful behaviors. The “just doing my job” argument is not allowed in court.

This Federal Criminal Complaint is against Carrey Burton-Beilby and Alexis Bear, agents in FTB’s Collections Department, who each directed me to send FTB more money than the bill stated was due, then falsified FTB’s internal accounting records to make it look like that higher amount of money was the total that was always due.

Continue reading “My First Federal Criminal Complaint is Filed!”
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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

Continue reading “Second Legislative Change Request: Close the Married Loophole”