Warning: California penalizes you 25% for not filing even if they owe you!


V

Vickie Seley

This is a warning that California will charge you an
additional 25% even if you never owed them a penny if you
don't file an income tax return with them more than 8 months
after April 15.

For example, if you make 100K and your california income tax
is 10K yet you already paid in payroll taxes 11K but you
don't file for a year, then California will automatically
charge you the original 10K plus 25% of the 10K which is
12.5K just because you're late. So you don't even get your
refund. They keep it (they kept mine). And they send you a
bill besides. All for taxes you never owed in the first
place!

The federal government does NOT penalize you for being late
if they owe you.

I know all this because after my husband died a few years
ago, I moved from Texas which thankfully is a very low tax
state to California which unfortunately is a very high tax
state and it took me a while to get my tax feet on the
ground again.

I don't want this to happen to other hapless Californians.

Warning: California penalizes you 25% for not filing even if
they owe you!

Thanks in advance for any help.
Vickie
 
Last edited by a moderator:
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M

Mike Wellman

Vickie Seley said:
This is a warning that California will charge you an
additional 25% even if you never owed them a penny if you
don't file an income tax return with them more than 8 months
after April 15.

For example, if you make 100K and your california income tax
is 10K yet you already paid in payroll taxes 11K but you
don't file for a year, then California will automatically
charge you the original 10K plus 25% of the 10K which is
12.5K just because you're late. So you don't even get your
refund. They keep it (they kept mine). And they send you a
bill besides. All for taxes you never owed in the first
place!

The federal government does NOT penalize you for being late
if they owe you.

I know all this because after my husband died a few years
ago, I moved from Texas which thankfully is a very low tax
state to California which unfortunately is a very high tax
state and it took me a while to get my tax feet on the
ground again.

I don't want this to happen to other hapless Californians.

Warning: California penalizes you 25% for not filing even if
they owe you!
A delinquent penalty will be charged on unpaid taxes if a
return is filed late. The penalty is 5 percent of the unpaid
tax due for every month that the return is late, up to a
maximum penalty of 25 percent of the unpaid tax. The minimum
penalty is $100 or 100 percent of the unpaid tax, whichever
is less.

In your example, there would be no penalty because there is
no unpaid tax due.
 
Last edited by a moderator:
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P

Phil Marti

Warning: California penalizes you 25% for not filing even if
A delinquent penalty will be charged on unpaid taxes if a
return is filed late. The penalty is 5 percent of the unpaid
tax due for every month that the return is late, up to a
maximum penalty of 25 percent of the unpaid tax. The minimum
penalty is $100 or 100 percent of the unpaid tax, whichever
is less.

In your example, there would be no penalty because there is
no unpaid tax due.
This saga played out--may still be playing, I blocked it--on
the unmoderated group. After about 50 more posts the fully
fleshed out story will emerge, and we'll learn that OP
ignored notices from both IRS and CA, which both pursued SFR
remedies. The CA penalty was appropriate for the year in
question.

--
Phil Marti
Clarksburg, MD

Moderator:
Thanks, Phil. I rarely read the other group so I was
not aware of the situation. As right now, this thread
is closed.
 
Last edited by a moderator:

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