07/29/2016
ATTENTION CITIZENS OF LOS ANGELES!!!
As a tax preparer I had always helped people avoid taxes NOT evade them but this has gone to far, listen why....
A couple of days ago a client of mine called me and said "I need to see you asap I received something in the mail that's saying I owe taxes" ok I said but my mine just imagined that I might be a penalty and interest for late filing or something but I never imagined the scheme that the City of Los Angeles is trying to do to collect more money.
My client came and showed me two scenarios, first his mom, a retired woman living on social security who received a notice from the city that she hasn't paid taxes on 3 years in a row for 30k she made each year and since she supposedly she needed to have a city license , so now 3 years later they are trying to collect over $1000 in fees and penalties. Ok first thought in my mind after checking her last tax returns, was she self employed? No, Did she ever get a 1099 Misc? No, so the easy answer, someone stole her identity and has filed with her SSN and commented fraud so, nothing to do her but to go to the LA City office with her returns "but wait....what returns?The last time she filed was for 2012, the were saying it was 13,14,15, she hasn't filed since because of her age and because she lives on SS.
Ok I said to my client, go to the office with the very last tax return and claim fraud, so where is the cities fault in that? So now we turn over a notice that he received and similarly saying that for the last 3 years he failed to report an exact amount of 30k in his return as independent contractor and that he needed to pay penalties and fees for those 3 years. I've been doing this guys returns for over 5 years now and never has he had a 1099Misc all have been W2 now on top of that they send him a form to fill out to file for a city license because now it's "THE LAW" that if you get paid as an independent contractor for whatever reason you need a city license and because it back dates to 3 years ago so now you are delinquent in city taxes.
Now I started to see the pattern, now I started to connect the dots and this is why....
You are living in Los Angeles and get a paycheck, you get a W2 at the end of the year and think you are fine but you get this letter from the city saying you owe taxes, no biggie, you look at you tax returns, you call the IRS and the State and both say you are fine, so, you ignore the letter, but they claim and add penalties etc until you call, they say you need to show up with your returns and pay, frustrated you ignore once more until a lien on you bank account freezes you money, NOW they have your attention, you go talk to the city clerk, easier said than done. You clear you name and they stop collecting and good for you, it just cost you a day of work and a payday loan just to get by the nightmare but, now imagine you multiply this same scene a couple of millions of times, now you get the picture.
Mayor Eric Garcetti! This is not a honest way to collect funds for the city, you are asking the poor and middle class to pay more when they have already paid up to the Fed and ST. You want to collect more taxes do it the honest way! Lower the threshold from 100k to 30k to on you city tax return, even if the people point at you for increasing their taxes, at least it not fraud or shady.
For of all of you out there in LA, what out for notices from the city regarding needing to get a permit if you get paid direct and get a 1099misc. Don't ignore them, they are real and very soon can get very nasty too.
If you need someone to consult in this regard, drop me a line or give me a call, I'd be happy to assist 😉😉
