Monday, November 20, 2017

How to Negotiate With the CA Franchise Tax Board

By Tom Forrest

It is Extremely Difficult to Negotiate with the California FTB or CDTFA
Unfortunately many small businesses are being unfairly and aggressively pursued by the State of California Franchise Tax Board (FTB).

More Taxpayer Abuse, see email below:
I have been waiting 12 days and still no response from the CDTFA even after they promised in writing to phone me 12 days ago. Now I will phone my state senator and ask for help.

From: Tom Forrest
Sent: Wednesday, October 18, 2017 6:07 PM
To: Wurst, Catherine ; Epolite, Anthony (Legal)
Cc: Tom Forrest ;
Subject: FW: Tom Forrest, Case ID: 922307 July 27, 2017 Decision -
Importance: High


Please Respond.

This is why the State of California needs new laws to prevent unethical behavior and taxpayer abuse by the CA FTB and BOE, or your new name? CDTFA.

I have not heard back from you and that is terrible, unfair, wrong, and unethical.

I need an email response as soon as possible.  

This is exactly why so many businesses are leaving the state of California like I did.
The CDTFA abuse is why I left California.

Also you never called me like you promised below.
I only want emails from you. Everything must be documented for the articles I am writing about this horrifying experience with the CDTFA.

I am working on upadating this popular article.

Tom Forrest

From: Tom Forrest
Sent: Tuesday, October 17, 2017 12:50 PM
To: Wurst, Catherine <>
Cc: Epolite, Anthony (Legal) <>; Tom Forrest <>
Subject: RE: Tom Forrest, Case ID: 922307 July 27, 2017 Decision


I left you two voice mails.

  1. Please send me an email that the start date for my time to respond to this 7-27-17 decision is today 10-17-17

  1. That the has stopped any plans or actions to collect money from me.

Catherine has the cdtfa sent any other letters to me?
Everything must be sent to my email address.

I need all of the above because the cdtfa has made serious mistakes already and therefore I have zero trust in the cdtfa.

Thank you.

Tom Forrest

From: Wurst, Catherine []
Sent: Monday, October 16, 2017 7:12 PM
To: Tom Forrest <>
Cc: Epolite, Anthony (Legal) <>
Subject: Tom Forrest, Case ID: 922307 July 27, 2017 Decision

Hello – Attached please find a copy of our letter dated August 1, 2017 and the Board of Equalization’s determination of the above appeal decided July 27, 2017.   We will also call you tomorrow to discuss any questions or concerns you may have. 

Catherine Wurst
Staff Services Manager II
California Department of Tax and Fee Administration
450 N Street, MIC: 81, Sacramento, CA 95814
Phone: 916-445-4394 | Fax: 916-324-2618 |


From 4-1-16:
The following is new and more proof of the California Franchise Tax Boards (FTB), unethical and illegal treatment of me a small business owner.
Please email your State Senator and demand that they take actions to reform the evil and unfair collection actions of the California FTB.
My state Senator is Henry Stern, please email hem and demand he do something to protect business owners and all citizens of the state of California from being treated in an illegal and unethical manner. So the citizens of California do not have their civil rights violated by the CA FTB.


See my emails below.

From: Tom Forrest
Sent: Thursday, March 31, 2016 4:55 AM
Cc: Tom Forrest <>
Subject: FW: The FTB has illegally put a lien on my house. I have Appeal Case ID No. 922307 filed with the State Board of Equalization - I have a hearing coming up in Culver City CA.
Importance: High

FYI below.

I am asking my attorney if it is okay to add this email string to my blog article.

I think the entire world should know about this and that the FTB needs to have punishment and reforms so no more citizens are abused and treated illegally.

Bradley Kragel I am also documenting how you have ignored me and how and I will fight this inappropriate behavior by you in court until I win.
You are wrong and evil for treating the citizens of California this way. It is clear to me that none of you really understand that you work for the “people of California” including me.
Those are just words that the FTB does not respect. This needs to change and I will try my best to put a stop to the FTB abuse of small business owners.

Tom Forrest

From: Tom Forrest
Sent: Wednesday, March 30, 2016 9:30 PM
Cc: Lane, Steve (Steve.Lane@SEN.CA.GOV) <Steve.Lane@SEN.CA.GOV>; Tom Forrest <>
Subject: FW: The FTB has illegally put a lien on my house. I have Appeal Case ID No. 922307 filed with the State Board of Equalization - I have a hearing coming up in Culver City CA.

Hello Senator Pavley,

I am extremely disappointed with your poor efforts to help your constituents.

Your office is generally arrogant and not helpful at all.

Steve Lane did try and he is the only positive I see in your staff.  
Small business owners are being severely abused by the California FTB and you Senator are doing nothing to help this horrible situation.
Please read below and read this popular article I wrote about this.

Senator please do something to help me.
You need to personally fight for your constituents and stop the FTB from treating people like we are in communist China.
This is America and evil tricks and rip off scams committed by the FTB should not be allowed to continue. What the FTB did to me is totally illegal and no one in your office even cares.

Senator Pavley how would you feel if the FTB illegally put a lien on your house?
I am serious, you should answer my question.

Kind regards,

Tom Forrest
Office Phone: 323-345-4504

From: Tom Forrest
Sent: Wednesday, March 30, 2016 5:55 PM
To: '' <>
Cc: Tom Forrest <>
Subject: The FTB has illegally put a lien on my house. I have Appeal Case ID No. 922307 filed with the State Board of Equalization - I have a hearing coming up in Culver City CA.

Hello Joel,

I want to ask for your help as the FTB continues to harass and do evil illegal things to me.

I have an Appeal Case ID No. 922307 filed with the State Board of Equalization and I am waiting for my hearing date in Culver City CA.

Today I received a letter from Kim Tran (Phone: 888-653-0494), of course I cannot reach this person and no one will return my phone calls.
It says Account Number 201001410078000 on the letter.
It states that the FTB has illegally put a lien on my house.

I am asking my Attorney if I can file a law suit against the FTB for illegally doing this to me.

In order to mitigate the damages, the California FTB has caused me we need this illegal lien taken off tomorrow and I need written proof that is it done and that there is no lien on my house.

No one is helping me or responding, so what should I do?
I am tired of being abused by the FTB and treated like I am in communist China instead of America.

Please email back to me as soon as possible. This is an urgent situation.

Kind regards,

Tom Forrest

Office Phone: 323-345-4504

From: Myers, Joel@FTB []
Sent: Tuesday, August 11, 2015 4:12 PM
To: Tom Forrest <>
Subject: RE: Please let me know the outcome of my Protest. Thank you.

You will receive a reply by mail. Or you can call our contact center to check on the status.
Joel Myers
Compliance Representative
FTB/ARM/BE Late Stage/LLC & Partnerships
Phone: 916.845.5991 Fax: 916.845.9545
MS. - A315

The following is from 9-28-15
This is driving many businesses to leave California because it is a State that is NOT friendly to businesses. This is general common knowledge among all business owners. 
The entire California FTB process is unfair, sneaky and not what you would expect from any USA state, it is more what you would expect in a communist country like China or North Korea. I will give exact details and examples below.
The FTB is just another example of the State of California's long history of citizen rip-offs.

California Seizing Citizens' Property to Balance Their Budgets.

If you have to fight the California FTB yourself I found these websites and articles below may help you.

It is Not Easy Dealing with the Franchise Tax Board

5 Factors Used to Decide if the CA FTB can Transfee a LLC tax Debt to a Member

Keller Fishback and Jackson

How to File a Protest with the California FTB

Now I will give detailed examples of my case, my firsthand experience and terrible problems, which will help you understand why I am going to move my business to another State. The sad part is the State of California is losing many good businesses for the reasons I mention below.
First the state of California sends you what looks like junk mail; this is all part of a grand scam and plan to increase their chances of collecting money and ripping off businesses. They hope you think it is junk mail and throw it away.
The major concern California citizens should have is that the State of California does not care if they are legally correct, they just want money.

The State of California FTB does not have to prove that you received any documents from them, and if you never receive any documents, the FTB will just take money from your bank account or try to collect from your clients, seriously. Yes, I know this sounds like it could not happen in America yet it does.
I am not even giving you all the dirty tricks the state of California FTB uses; I am just giving you the highlights. 
Then if you file a Protest letter you better make sure you have proof you sent it in to the FTB. They claimed they never received my Protest letter and I had to prove I sent it in and re-send the documents via email.
I still do not know if my Protest letter has reached the correct department and what their process is.

There are very few attorneys who specialize in this type of law and they only work on cases bigger than $100,000 generally. The FTB is clever and they know this so they have their highly trained "collection agents" that focus on collecting $30,000 or less so then no good attorney will be involved to stop them. The FTB calls them "Compliance Representative's", do not be fooled you should only talk with these people as little as possible as they are not attorneys, and they know enough about the law to be very dangerous. You can never be right, they are always correct and you are always wrong. Furthermore even if you ask them to only email you, they will phone you and try to play games and ask questions digging for any data they can to use against you. Then they say it is recorded for quality control, which is total bullshit. The FTB just wants to dig for more information to use against you and use the recordings to train their agents to collect better and tougher. It is really terrible how this is allowed to continue on for many years.

Now I will show you the actual Protest letter I sent in:

This Protest letter proves the FTB should have never even tried to collect from me and I only hope if there is any justice, my protest will be granted.

If not then I have to read the following:

Then continue on with my legal battle with the State of California FTB.

In summary the FTB is driving businesses to leave the state which is very bad for revenue collection, and creating a horrible reputation so no new business would ever want to come to California. I mean after reading this article would you want to move your business to California?
Furthermore the FTB is going to lose money from all the effort they will put into wrongfully trying to collect money from me.
Please contact your state representatives and ask for these laws to be changed so California has a good reputation for helping businesses to grow and prosper.
We do not want the State of California to have this negative reputation which forces business to leave the State of California, all businesses need to fight and stop the horrible situation we currently have. Please ask your California State Representatives to read this article and to make positive changes to our laws to stop the FTB from driving great businesses out of California. We need laws that create desire for excellent business owners to move into California.

Update: 9-20-15
Bad news, the FTB had an Advisor from the "Collection Advisory Team" deny my protest.
So now I have until 10-2-15 to file an Appeal with State Board of Equalization.
It is very suspicious that the people deciding my fate would have this title, it does not seem like a fair and impartial process, when a collection team is deciding a legal issue.
Also I would like to obtain a recording from the last time the gentleman Joel phoned me from the FTB. This was before my protest letter was reviewed, yet the recording says the exact same thing as the letter I received many weeks later. As if this was decided before it was even reviewed. The letter they sent me looked like a form letter written by someone that is ignorant and clueless regarding this area of law. It is evil and terrible that the State of California would operate in such an unethical manner.
It seems to me that Leslie the 
lady  collection adviser told Joel what to say before my case was even officially reviewed. It makes one feel there was never any chance at have a fair review.

Furthermore the letter is dated 9-2-15 and I did not receive it until 9-21-15, so the FTB is shorting me over half (19 of my 30 days) to respond. So now I only have 11 days to have my attorney advise me and have two declarations created that prove the FTB is totally incorrect and that I do not owe them any money.
I complained to Leslie the FTB agent and she admitted on a recorded line that she in fact did not give me the 30 days required by law.  She refused to give me my 30 days, and I asked for her manager Debra to phone me and Debra never returned my phone call.

So does this mean the California FTB does not have to follow the law Senator Pavley?
I contacted your office asking you to phone me and to help me be treated fairly by the California FTB.
I want my legally required 30 days to file my appeal.

Also Senator does it bother you that the State of California is wasting a huge amount of money unfairly pursuing innocent people?

Does it bother you Senator Pavley that the FTB is chasing many good businesses out of this state with their unethical and evil behavior? 
Senator Pavley you have been in office a long time and you have done zero to stop the California Franchise Tax Board from unfairly abusing small business people, I do not think you are doing your job properly and the citizens of California need a change in leadership. Perhaps you should just retire and let someone that can do a much better job take over. In fact now I am sad Todd Zink did not defeat you.

I am not a Republican or a Democrat, I am not affiliated with any political party. I am just against long term politicians that ignore the needs of their constituents, like you Senator Pavley.

Update: 9-29-15
Steve from Senator Pavley's office did try to help me, however he could not achieve the desired result of having the CA FTB give me my 30 days of notice as required by law. He gave me some lady's phone number that was another person that would not be able to help me. They gave me a copy of "Publication 81 Franchise and Personal Income Tax Appeals".

This document has very serious defects and should be tossed in the garbage and a new set of rules and laws should be developed and implemented.
This is where I wish I could be CEO of the State of California as most entrepreneurs and business owners are frustrated and socked at how lame and defect many of our state laws and regulations are. I would focus on fixing this as my top priority.

So the bottom line is Joel and Leslie of the CA FTB are free to continue to abuse and violate the rights of citizens of the State of California and currently no one is doing anything to stop them.

I want to give new politicians a chance as our current leaders are ineffective and have terrible results in stopping the abuse of the CA FTB against the citizens of this state.

Please forward this article to as many people as possible and post it on Facebook and other social media sites. You may be the next victim of the terrible abuse by the California Franchise Tax Board, so we need to work together and force the laws to be changed.