Client got letter from CA FTB for 2016 for a huge $$ amount due that makes no sense for her...

[Just-Lisa-Now-]

So I call FTB and the pull her up by her FTB Account umber and then again by SSN and they show no balance due for her.  

After some back and forth, and verifying her Date of Birth, I find out that this person that has this huge balance due for failing to file a CA return has the same name as my client, even the middle initial is the same but is a totally different person (different DOB)....apparently FTB just pulled an address they found somewhere for a  Mary T Jones (the agent told me they get their information from many different places...sounds like a half ass internet search to me) and sent the bill...didn't bother to verify if it was the right person or not  WTF California?!?!   

They couldn't tell that my Mary T Jones DID file a CA return with the address where they sent the notice and had no balance due?  

Something is really broken in their system for this to happen.

[sjrcpa · Accepted solution]

Lisa, if I didn't know this was true I would say it is unbelievable.

[Just-Lisa-Now-]

right?!   I thought the notice was one of those scams at first since there was no way my client could have ever owed the amount on the notice.

[Accountant-Man]

My client, WHO DIED IN 2016, just received a notice asking about her 2016 CA return. She lived her entire life in NJ, but after she died, we used her son's address in CA on the 1040 and NJ 1040. We never filed in CA.

I always use "C/O Son's name and address," and until now, this has stopped any problems.

CA got federal info with the CA address and think she should file in CA. WRONG!

[Just-Lisa-Now-]

This is common for CA, happens all the time for clients that move here in the beginning of the year and use their current CA address on their federal return for the prior year taxes.  Just respond to the questionnaire and it shouldn't be an issue.

[abctax55]

Daniel....as I said, the FTB is to be feared due to its complete irrationality & overreaching arrogance.
As Lisa said, a quick response (altho it shouldn't even be needed...) will likely clear it up immediately.   I'll keep my fingers crossed for you & your client.

[abctax55]

I have told clients for years that the pecking order of agencies to fear is:

SBOE (California Sales Tax) or whatever the hell they call themselves now....

FTB

EDD (California payroll taxes entity)

THEN the IRS.....

Lisa, I have a contact on a different list-serve that may want to hear the details as he is a liaison with the FTB and deals with their many, many screwups 

[Just-Lisa-Now-]

I'm just baffled that this could even occur, what if it had ended up being some elderly person that just paid the bill.  

I'm not sure what a list-serve is, but they need to come up with a better plan for this type of thing.   

The agent I spoke with (their name was at the bottom of the notice) went in and took my clients address off that other persons account, but it should have never ended up there to begin with.

[abctax55]

list-serve = just another tax forum.  But the person who started it/monitors it has the inside track for communication with the FTB about their various/sundry AFU's

[IRonMaN]

Cut the guy that generated the notice a little slack.  I understand he had worked for the FBI for a number of years and was in charge of finding Jimmy Hoffa.  He probably got so excited the he finally found someone that he skipped doing a little more homework before the notice went out.

[George4Tacks]

Years ago I had a wife who never reported her income from DC, even though she had lived in CA her whole life and had never worked. This was back in the 80's and it took almost an act of Congress to get SS to issue her a new card with a new number. Probably the card she had, and that I used on the tax return was issued to her just based on name. 

My favorite is 078-05-1120 https://www.ssa.gov/history/ssn/misused.html