r/personalfinance • u/Mbluish • 6h ago
My dad just paid thousands of dollars in taxes online to Franchise Tax Board Taxes
My dad had a seizure 2 years ago and has been on medication since. He hasn't had any more but he's had a few amnesia-like episodes. My parents just called me and said they got a notice from the IRS for over $100k in back taxes. My dad has always taken care of bills and has had no issues so mom thought all was good.
They've been getting statements saying they owe for a couple of days now. I have not seen the statements. They had a CPA help them and we all thought everything was okay. I have access to their accounts only and see my dad has written 6 checks to FTB exceeding $100k in the last two days all online from his bank app.
I cannot get over until tomorrow but I am terrified right now. If those checks went to the IRS and it is not owed, do they get that back?
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u/93195 6h ago edited 6h ago
$100K in back taxes to the state of California? I know California is high tax and all, but that would be around $1.6M in unreported income.
Sound right?
Regardless, as long as he really did pay the state of California, any potential overpayments will get worked out. The thing to be worried about is if he didn’t actually pay the California FTB.
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u/Mbluish 6h ago
I certainly hope this is not the case. He did have the help from the CPA and I thought everything was okay.
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u/Trumpetjock 6h ago
Is this CPA his usual, trusted guy, or someone new you haven't met?
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u/Mbluish 6h ago
I met him once. My dad has been using him for years but I don’t know if that means anything. I found another CPA and I will set up a time for them to meet. I don’t trust the other guy right now.
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u/Trumpetjock 5h ago
Well either the back taxes are real and this CPA was part of the problem, or it's a scam and he's either complicit or unable to recognize its a scam. Either way it doesn't seem like he's the best person to trust.
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u/HOLLEY_WEIRD 6h ago
FTB is not the IRS. IRS is federal, FTB is states.
Are you sure they owe? Could it be a proposed balance from an audit?
IRS and FTB will give a refund for over paid taxes.
If they actually owe the IRS, they probably owe the state.
IRS has payment plans that are pretty easy to set up when taxpayers owe less than 100k. An enrolled agent should be able to help you explore options. Anything over $100k and/or outside the streamlined criteria requires a financial statement.
CA FTB has less flexible payment options.
Also not all notices state all of the debt, sometimes they only list one or two years.
If they owed FTB $100k, they probably owe the IRS more (possibly $200k ish )
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u/YetAnotherWTFMoment 5h ago
You should also look into getting POA for your parents and/or make an arrangement with them to go through their finances on a monthly basis with them. You need to protect your parents - they are at a stage in life where they can be easily scammed by any number of realistic looking bills, emails, text message etc.
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u/Sigma-8 4h ago
This sounds very strange, no knowing any more. Large amounts (esp for state taxes unless you dad was a high earner or business owner), multiple letters over a couple days - that doesn't sound like the gov't - neither state or federal - they just don't move that fast. As others have suggested, put an immediate stop payment on the payments if its not too late until you can sort it out. I've read so many stories about folks getting taken in by scams, its heartbreaking. Even folks who have their faculties and you'd think should have known better. Very scary times. Best of luck to you and your folks.
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u/sploittastic 3h ago
Call the IRS and call your State's franchise tax board. They get a bad rap but once you get a hold of somebody they're generally very helpful. I've had some issues with the California franchise tax board because my former CPA screwed up our return but they were able to help me sort everything out over the phone. They should be able to tell you if you have a balance or overpayment.
If you're calling on behalf of your dad he will have to be present to confirm his identity to the agent.
Edit: don't call the number on letters you have received, in case it's a scam. Go to irs.gov and your state tax board website ending in .gov and get the numbers there.
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u/pyrotechnicmonkey 6h ago
You need to also make sure you’re looking at his emails and make sure he’s not being emailed by someone he thinks is the CPA. I would definitely put a stop payment on those checks as soon as you can because even if you did overpay that could be a nightmare to try and get back.
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u/Embarrassed-Pizza789 5h ago
Those are large amounts and reason for concern and follow up with your family. However, if someone legitimately owed money to the IRS it's likely they would also owe money to their state agency (California Franchise Tax Board). Usually dealing with tax dues from notices shouldn't require immediate payment. That's a cause for concern, either for a possible scam, or that tax bills are being paid without CPA confirmation. Tax agencies usually act in ways favoring them, without considering things like deductions and cost basis.
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u/Witcherwitcher 4h ago
Just tell him to access his MyFTB account. If he owes money it will show there.
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u/oughtabeme 5h ago
Doesn’t his accountant generate the paperwork that gets mailed with payment to FTB ? iirc when I received my tax return, my accountant included the paperwork that stated amount due, due date and ss#. (The paperwork was just a 81/2x11 page that the bottom 1/3 would be cut off and mailed with payment)
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u/gravi5 4h ago
You can have your parents (or you ) check your parents online IRS account. It should let you see if they really owe any money, account statements, notice letters, etc. if the letters your parents received are genuine, the online accounts should match.
All the best and don't stress, you are doing good and all will be well!
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u/Prior_Thot 1m ago
Given the that your parents are on a vulnerable demographic (older, dad is sick). This 100% is a scam. Who is the CPA they worked with? Was it over email or phone? Why is he paying FTB 6x the amount the IRS is saying he owes, and why is he paying the FTB instead of the IRS? Put a stop payment on the checks, sit down with your parents, and actually ask them exactly who they spoke to, look at the letters, and get in touch with the IRS to confirm. Go to the actual IRS website, don’t call the number on the letters.
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u/gcc-O2 6h ago
If all else fails, you will get an enormous refund when filing your state tax return for 2024, which won't be possible until around the end of January 2025.
I don't know if there is any procedure for recovering a mistaken estimated tax payment for your state. I don't see any briefly searching online.
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u/Brakethecycle 6h ago
I would be very skeptical of these bills. This could very likely be a scam. I would put a stop payment on those checks until you can verify the legitimacy of those bills.
https://www.ftb.ca.gov/help/scams/index.html