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I have been contacted by California Tax Dept concerning my "state taxes" owed from 1999-2002. They are threatining collection etc. My questions are: 1. I thought after 10 years they can't come after me, I haven't lived in Calif for over 15 years, I live here in Texas. Does Texas law help in this matter or not? 2. I am retired and have no "wages" to granish but I do have pension and it's my understanding they can't touch my pensions, yes/no? Can they levy my bank accounts after this long? 3. I don't want to talk to them by myself because that's acknowledgement of the debt?!? Thank you - I know there's a cost for this, I am prepared to pay
Hi, thank you for asking your question today. The other Experts and I are working on your answer. By the way, it would help us to know:What type of taxes are owed (income property, business)?
Did you file a return for the taxes owed ?
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They were wage income taxes. Yes returns were filed on time each of these years 1999-2002.
They were income taxes.
Yes I did file all years 1999-2002
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For many years, no statute of limitations existed on the collection of an income tax. Beginning in 2006, a 20 yr statute of limitations on collection actions went into effect. The time period begins to run on the filing date. If you don't file there is no Statute of Limitations.
If you do not have assets remaining in California then the California must initiate collection action in Texas. Texas has historically been a debtor friendly state.
Your homestead is protected in Texas.
Pension plans, retirement plans, IRA's, 401(k), 403(b), 529 educational IRA are all exempt and protected, with some restrictions.
Cash value of life insurance and cash proceeds from life insurance are protected.
Wages cannot be garnished in Texas ( I know you don't have any).
Checking and savings accounts are considered cash and can be garnished. To protect yourself you need to make sure that you do not commingle money from multiple accounts. Your pension funds should go into an account which contains only money from your pension. You must inform the bank that the sole source of income into the account comes from a pension and is protected (exempt) from garnishment.
In order for California to even attempt a garnishment it must first domesticate a judgment in Texas. They cannot garnish your Texas accounts without a Texas order.
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So if I just ignore their letter and move my pension $'s into individual accounts, I would "possibbly" not have to worry about answering this letter?
That is true,. You would be subject to collection in California. You may receive notices about the California order being domesticated in Texas and hearings in Texas related to the matter. At the hearing you may need to attend and indicate you are not waiving your rights with respect to collection.
My comments are not intended to help you avoid paying your taxes. They are basically informational only.
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Educator, Esq: Follow up question: Is the following
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