Tax season is often a stressful time whether you are filing an individual tax return or whether you need to file a business tax return. Many taxpayers have difficulty determining why their taxes may appear so high or what tax regulations apply to their specific situation. Fortunately, you do not have to tackle your tax issues alone. If you owe money to the California Franchise Tax Board (FTB) and you are unsure why you should work with an experienced Roseville tax preparation and planning service accountant as soon as possible. At the Cook CPA Group, we are prepared to offer you the accounting services you need to handle a variety of complex tax filing issues. The Cook CPA Group is here to discuss why taxpayers may continue to owe money to the California Franchise Tax Board.
Common Reasons Taxpayers Owe Money to the California Franchise Tax Board
The California Franchise Tax Board is responsible for collecting personal income tax and corporate income tax in the State of California. California taxpayers are required to pay their taxes to the FTB. However, after filing their taxes, many taxpayers still have an outstanding tax bill with the FTB. Depending on your circumstances, there could be a number of reasons that a taxpayer owes money to the FTB after filing taxes.
If you owe money to the FTB, the Cook CPA Group can help you determine why.
Penalty for Late Tax Returns
Filing a late tax return is one of the most common reasons that a large number of taxpayers owe money to the FTB. Specifically, a taxpayer can incur late fees on an unfiled return the day after not filing their tax return. In California, taxpayers will incur a more than 5% penalty for every month that the taxpayer’s returns are not filed.
If you are concerned about late fees for your unfiled taxes, our experienced CPAs are ready to work with you.
Errors on Your Tax Return
When preparing your tax returns with the FTB, it is vital that a taxpayer ensures their information is accurate. For example, if a taxpayer files for the wrong tax credit or calculates an incorrect amount of taxes, this may lead to a tax bill.
When the FTB discovers an error on a taxpayer’s return, they will likely adjust the return and send a bill to the taxpayer for the remainder of the taxes. Unfortunately, if you filed close to the deadline, this could mean that you may also incur an additional late fee on top of the balance you already owe the FTB. In some cases, the FTB may begin a tax audit for severe filing errors.
The Cook CPA Group understands that it can be daunting for an individual or business owner to decipher the tax code and determine what provisions apply to them. We can alleviate your concerns about submitting a serious error on your tax returns.
Failure to Pay Entire Tax Debt
It is very common for a taxpayer to have issues with paying the entire amount of their tax bill. When this happens, a taxpayer may attempt to pay as much as possible on their bill. However, if you do not have a payment plan with the FTB to manage your tax bill, you will likely be subject to tax penalties on top of your tax debt. This can make it extremely difficult to chip away at your tax bill.
Our team of Sacramento accountants can help you negotiate a payment plan with the FTB that works for your unique circumstances. You should not have to worry that your tax bill could threaten your financial livelihood.
Business Tax Debt
In some cases, the owner or an officer of a business may be liable for the debts of a business. For example, if the business does not possess the funds to pay their taxes, this could lead to the operators of the business being stuck with the bill.
Unpaid Child Support
It is reasonable for a taxpayer to assume that they only owe taxes to the FTB for issues that arose out of their individual tax return. However, there are many other reasons why a taxpayer could owe money to the FTB.
The FTB also has the power to issue a bill to a parent that has failed to satisfy their monthly child support payments. For example, if you fail to pay child support, the FTB may garnish your wages until the past due balance of the child support is recovered. In extreme cases, the FTB can even place a tax lien on the property of a taxpayer, which allows the property to be seized if child support is not paid.
If you have received notice from the FTB that you have a past-due tax bill or owe fees for other reasons, our team of skilled CPAs is here to work with you.
Speak with Our Experienced California Accountants to Manage Your Debt with the California Franchise Tax Board
If you need accounting assistance to determine why you owe money to the California Franchise Tax Board, you should speak with an experienced Roseville accountant immediately. It can be troubling to learn that you owe a tax bill to the FTB, and our team of accountants is here to help you determine how to proceed. Our committed accountants have several years of experience managing taxes for individuals and businesses, and we are prepared to work with you. To schedule a free consultation to discuss your taxes owed to the FTB, you should contact the Cook CPA Group at (916) 432-2218. You may also use our online submission form to schedule your free consultation.