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).

December 29, 2020July 16, 2024

FTB’s 2020 Annual Taxpayer Bill of Rights Meeting

Here is the full speech that I tried to give at FTB’s 2020 Annual Taxpayer Bill of Rights Meeting (12 minutes).

For those that prefer reading over video, here is the written speech.

Unfortunately, State Controller Yee muted me after 5 minutes. Here is how the speech sounded to the FTB audience:

CA FTB Dec 18 2020 Call Video 1

The whole meeting is here: https://www.youtube.com/watch?v=FTgFO5uADxo. My speech is from 51:24 – 57:21

Usually, FTB lets people speak for 8 minutes, and last year they let me talk for 11 minutes without cutting me off.

Controller Yee said that they had already received my written submission (which was longer and more detailed than the speech), and all of the requests I’d made would be addressed in their response due on February 1, 2021.

Just like last year, FTB did not deny any of the allegations that I made, neither verbally at the meeting nor in their written response . If my allegations were false, FTB would have denied them.

I think it was obvious to everyone that regularly attends these meetings that the Board knew what I was going to say and the Board cut the time short this year stop me from speaking the truth.

November 28, 2020December 22, 2022

FTB is Accepting Suggestions From the Public on How to Improve!

On Friday, December 18, 2020, at 1:30 pm (PST). the CA Franchise Tax Board will be having its Annual Taxpayer Bill of Rights Meeting, where they accept suggestions from the public on how to improve “the system.” More information is here: https://www.ftb.ca.gov/your-rights/your-taxpayer-rights.html

November 28, 2020December 22, 2022

PSA — Do You Have Any Ideas For New State Legislation? The 2021 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 legislative year starts the September prior to the calendar year (so they are working on 2021 now even though it’s still 2020). From September to December, each legislator decides what they want to introduce for the next year. September is really the month you want to try to get into your legislator’s faces about the bills you would like to see introduced so that they have time to consider it, draft the bill, refine it, etc. But it’s still not too late!

October 20, 2020December 22, 2022

FTB is Accepting Comments From Public About Proposed Changes to R&TC 19133 and Title 18, California Code of Regulations, section 23663-1, as well as the potential adoption of Title 18 section 23663-6, relating to Assignment of Credits

I have nothing to say regarding Title 18, but I have a lot to say about Revenue and Tax Code 19133! I have requested two major changes to the law. You can read my requests in their entirety here, but here are the highlights:

October 5, 2020December 23, 2022

California Supreme Court Declined to Take The Accusation

No explanation was given for why the judges refused to take the Accusation where I documented that FTB employee Eric Yadao conspired to cover up his employer’s criminal activities by improperly redacting documents to hide evidence. I am disappointed, but not surprised. It seems to me that if my case was weak, the CA Supreme Court would have taken it in order to clear FTB of all allegations of criminal activity. I believe the fact that the judges chose to pass on my case indicates that I would have won.

In good news, though, I got a letter from the California Auditor’s Office indicating that they have opened an investigation into the Franchise Tax Board. No word back from the FBI as of yet.

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..

FTB Fighter

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