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Dwayne B.
Dwayne B., Attorney
Category: CA Real Estate
Satisfied Customers: 32154
Experience:  Began practicing law in 1992
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We have just been notified that the State of California has

Customer Question

We have just been notified that the State of California has filed a lien of $31k. This action stems from tax years 2011-12 where they contend we own income taxes. They contended the same thing a few years ago (about 2009 and 2010) and we were able to prove to them that we never were residents of California. I worked for a company based in California and we bought a second home out there but we always lived in Georgia (where we maintained the same residence/owned same home since 2003). In the previous situations we were able to use IRS documents and other items to convince them that we were never subject to California income tax. But this situation appears to be at least partially different.
At one point in the discussions with the Franchise Tax Board they agreed that the 2009 tax was not justified. They did agree to remove that. But then another lady took the case and said she would not remove the 2009 tax/penalties until we paid or resolved the 2010 tax issue (which is about 2/3 of the total amount). The issue that is different for the 2010 situation is that they say regardless of whether we were California residents, when we sold the second home out in California we should have paid income tax on it. I documented for them that we had in fact paid tax on the sale of that property to both the Federal and State of Georgia income tax systems. But they claim that we must pay California.
My question at the moment is twofold...with one part more important than the other:
1) Most important...can the state of California put a lien on my property/income in Georgia? The letter from the Franchise Tax Board said "We recorded a state tax lien for your delinquent California personal income taxes. The lien attaches to all real property you own or acquire in SACRAMENTO county" (they had the county in all caps). I am in the process of qualifying for a home loan ( Georgia) and this has now become a problem for the loan underwriters.
2) less important is the basic question of whether we should have paid the tax on sale of the California property to California or as part of our Georgia Income tax
Submitted: 4 months ago.
Category: CA Real Estate
Expert:  Dwayne B. replied 4 months ago.

I answered this question a little while ago but it shows as being closed and I never received a request for more information, additional questions or anything like that. Did you object to some part of the answer?

Customer: replied 4 months ago.
you did not read the question correctly and therefore provided an irrelevant answer. I am not SEEKING to transfer a lien from California to Georgia (as your answer implied)...I am trying to find out if the State of California has the power to put a lien on my Georgia property or income at a Georgia based company. That is the most important question.
Expert:  Dwayne B. replied 4 months ago.

That is EXACTLY what I answered. The method I outlined for you is the same whether you are trying to put a lien on someone else's property (and I knew that is not the case) or someone else is trying to put a lien on your property.

The State of California can't just apply a lien from their state to property in another state since they are a separate entity. So, what they have to do is get their lien made into a Georgia lien. Some states have specific "interstate compacts" that provide a method for this but I didn't see one of those that exist between Georgia and California regarding liens. Therefore, the method I gave you before is how they would go about it. There is a different interstate compact called the Uniform Enforcement of Foreign Judgments Act (UEFJA) that provides the basis for doing this.

California takes their lien or judgment, either one, and takes it through a Georgia Court and domesticates it. That is covered by O.C.G.A. § 9-12-131 and the other statutes after that.

By this becoming a Georgia lien or judgment at that point it can then be enforced against all of the Georgia property including real estate, wages, etc.

So, that is how California can put a lien against your property/income in Georgia.

Please ask any follow ups in this thread. I hope I clarified the way that this California can move their lien to Georgia.

Expert:  Dwayne B. replied 4 months ago.

Also, you can still assert certain defenses, etc. in Georgia to the CA lien. Just because CA asks for it to be domesticated doesn't mean that it will be, this is just the method they would use.

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