California & State Tax

When people call about this

What this usually looks like

• The FTB is collecting while the IRS matter is still open
• The CDTFA is questioning sales tax on returns you already filed
• The EDD is auditing how your workers are classified
• You moved out of California and the state says you never left

How it actually works

The part that decides the outcome

Most states follow patterns the IRS established, but legislatures write their own law and each agency runs its own process. In California the work is split: the Franchise Tax Board handles income tax, the CDTFA handles sales and use tax, and the EDD handles employment tax and classification. They do not share a single file, and they do not wait for each other.

The state’s collection powers are not a weaker copy of the federal ones. The FTB’s collection period is longer than the IRS collection period, and residency disputes turn on evidence of where your life actually was rather than on where you registered to vote.

Running the two tracks together matters. A federal settlement leaves the state balance untouched, and a state resolution built without reference to the federal record often has to be redone.

The engagement

How we work a case like this

1. Separate the agencies

Which balance sits where, on what periods, and with which deadlines running.

2. Coordinate with the federal case

One financial picture presented consistently, rather than two contradicting each other.

3. Resolve each on its own terms

State remedies are not identical to the federal ones and are negotiated separately.

Related matters

These rarely arrive on their own

Tax problems overlap. The pages below are the ones that most often belong in the same file as this one.

This page is general information, not advice for a specific situation. Available procedures depend on the actual record and on current law, which changes. Confirm before acting, or ask this office to review your own facts.