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What is my recourse if the California Franchise Tax Board levies my bank account for incorrect back taxes due to Identity Theft?

Wilmington, DE |

I've had my identity stolen by someone living in California and then file taxes under my name in 2011 in that same state illegally. I have never lived or worked in California, and so should rightly owe the state of CA nothing. I was living in Nevada while this happened and it caused the IRS to perform their own investigation, of which they absolved me and released my Federal tax refund last year. I have contacted the FTB many times, sent requested paperwork by both documented mail and fax, and have had the IRS send their investigation records to the FTB as well. Now, two years later, after no contact with the California FTB, they just drained my bank account without any warning. Though they have my current address, they chose not to contact me or serve me in any way. What can I do?

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Attorney answers 1


Identity theft has become a huge issue both at the state and Federal level. You will want to complete Form FTB 3552PC (Identity Theft Affidavit). Here is a link to the FTB's web-site. If you filed the above papers you may want to contact the FTB Advocate at 800.883.5910. If you still have no luck you may want to contact a attorney, CPA, or Enrolled Agent in your area to assist you. They will need a power of attorney in order to speak with the FTB though.

Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, any tax advice contained in this communication, including attachments thereto, was not written to be used and cannot be used for the purpose of (a) avoiding tax-related penalties under the Internal Revenue Code or (b) promoting, marketing or recommending to another party any tax-related matters addressed herein. If you would like a written opinion upon which you can rely for the purpose of avoiding penalties, please contact Steven F. Schroeder using the contact information set forth above.