I have caught California’s Income Tax Collection Agency, The Franchise Tax Board, in two different racketeering schemes. I tried to get the illegal activity stopped by contacting legislators. I even made a speech to Legislators in both 2018 and 2019: vimeo.com/user93891576. The Legislators response was F*** you: gwsandiego.net/blog/?p=196. So now I have filed a lawsuit: gwsandiego.net/blog/?attachment_id=214

The FTB is illegally putting 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.

The FTB “accidentally” misapplies money to previous years and sends you a refund, leaving the current year underfunded. Like the withholding scheme, if you file your returns late, penalties are falsely imposed. Where it gets suspicious is that it takes months to send the refunds. The refunds are difficult to identify – you just get a check in the mail from the State of CA with no letter. The refunds have interest added or are broken up into multiple years (issuing a separate check for each year), so you don’t immediately identify that this mystery money may be a refunded tax payment. The FTB has an unusually difficult time locating these particular “lost” payments, taking months or even years to locate. Once located, they will accept another payment from you and retroactively apply it to your account for the date that the original payment was made, thus correcting the underfunding problem. But it takes them months to apply the money. And the accounting ledgers tied to these “misapplied” payments are inaccurate, with missing line items and incorrect dates.

More details can be found on my website: gwsandiego.net/blog/