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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I received a letter saying I owed taxes for 2005. I work as

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I received a letter saying I owed taxes for 2005. I work as a civilian for the U.S. government at the Tracy Defense Depot. I claimed no dependents. I am single. I do not itemize as I have nothing to claim. I made $47781.12 in wages; paid $2020.00 in state income tax. Using the tax table, I should have received $55.85 back from the state.

The state says I did not file for 2005. I did online for the first and last time. The state says I owe $558 which is a penalty plus interest. How can I be penalized for not owing on taxes? I do not know why my tax forms were not received over the internet. I have written to the Franchise tax board but they responded by lowering my taxes from approx. $3,000 to the $558. I do not feel I owe anything for 2005. What can I do to rectify this?        Gregory D. Miller
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.
Hello perplexed,

Do you still have a record of your W-2 forms and other tax forms for 2005 showing how much you earned and how much you had withheld for taxes?

Customer: replied 7 years ago.
Yes I do have the w-2 forms and other tax forms. I sent them to the Franchise Tax Board and that is when they lowered the amount I owed from $3665.03 to the $558.        Perplexed
Expert:  Merlo replied 7 years ago.
In your original post, you said that according to your records you actually were due a refund of $55.85.

Does that mean that you actually had more taxes withheld from your paychecks than you owed, or did the refund result from additional deductions you claimed other than the standard deduction?

Customer: replied 7 years ago.
More taxes were withheld from my paycheck than I owed. I do not claim any additional deductions as I have none to claim. I am single, never been married. I do not have a mortagage.   Perplexed 894
Expert:  Merlo replied 7 years ago.
Hello again perplexed,

As long as you had more taxes withheld from your paychecks than your actual tax liability was for the year, then the state cannot assess you with penalties and/or interest, since you paid in more than the total amount that was actually due.

It would be impossible for me to explain why they are still saying that you owe anything at all, however, I do know from personal experience that you could re-send this same information tomorrow, and depending on the examiner who reviews your information, you would likely get a totally different result.

It is sometimes very difficult to deal with these issues over the phone or by mail, and get them resolved in any timely manner. Because of that you may want to consider making a trip in person to a local tax office in your area. I would take with you a copy of the return which you thought was filed and copies of all your W-2 forms and sit down with someone in person to show them these records.

Unless you somehow computed the wrong tax amount that was actually due for that year, if you really had enough taxes withheld to cover your liability for that year, then you should not owe any penalties. Unfortuntely, the only way to get this resolved will be through the Franchise Board, and it may take a personal trip to one of their offices if you are looking for the quickest resolution to this problem.

Thank you perplexed, and good luck to you in getting this resolved in a timely manner. Let me know if you have more questions. I am happy to help you with whatever I can.

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