Thank you for using justanswer.
I can well understand your confusion and shock. If you look at this link:http://www.ehow.com/list_6806040_statute-back-income-taxes-california.html
it gives you some background on why CA is able to continue to accrue penalty and interest. I wanted you to know the law
(you would fall under the "State Extended by Federal Determination)
Its important that you know the law so that you can fight it.
If I were you, I would call the phone # XXXXX the letter/bill you received. I would simply state the fact that you moved from CA to TX, that you had filed all of your returns timely. That there was no intent of fraud, and can they work with you.
You may have to call back more than once to get someone you can work with.
One of my first questions would be why hadn't they notified me before now. If they state that they have, ask them for the date and address they sent the notification to.
Again, make sure that they know that you were not aware of this problem, and again, that there was no intention of fraud. That you're just trying to understand how this happened.
You may also want to read thishttp://www.irs.gov/pub/irs-pdf/p1.pdf
since it was an audit that you were never notified about that started all of this.
I wish you the best of luck, and remember that you may ask follow up questions at no further charge.
I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me.