New bureau plus: POA form updates and news on collections.

• Author: Williams, Len
• Position: CATax

The new California Bureau of Investigation is an entity within the Department of Justice, Office of the Attorney General. According to the member who advised us of this, there are 42 agents.

It began operations Feb 17 and more can be learned at http://org.ra.gov/bi.

The member (an attorney) learned about it when he landed a client who was raided (guns drawn) by this bureau's agents because he hadn't filed an income tax return since 2008. More than hall of the 42 agents were involved in raiding this taxpayer's home and business.

So far, the member has been unable to persuade the FTB to allow the client to get back into compliance without facing criminal charges. The client is high profile, so maybe they plan to use him to set an example.

Power of Attorney Form Update

For many years, the FTB seldom requested a Power of Attorney from a taxpayer's representative, but that has changed in recent years.

Nevertheless, a recent FTB Tax News item says that there are limited instances when Mt may be able to work with a caller without requiring a POA form. For example, a POA limn is not required when one is simply furnishing requested information to the FTB.

The notice goes on to say that they may be able to discuss a tax issue in a limited manner 'with a caller Who has notices or documents that the FTB sent to the taxpayer, but the caller must have the taxpayer's Social Security number, address or other information that may be requested.

[ILLUSTRATION OMITTED]

Still, the line agent has the authority to request a POA form for virtually any reason.

These are the instances when a POA.FIB Form 3520, probably will be requested:

* Received confidential tax information.

* Received information for non tax programs that FIB administers.

* Represent a. taxpayer/debtor or business entity before F1913.

* Sign the client's tax return (which is allowed only in very limited circumstances)

* Receive, but not endorse or cash, checks sent to the client by FIB.

California Statue of Limitations for Collections

This subject arose at the IRS Nationwide 'Fax Form in San Diego in July when Steve Sims, FTB's taxpayer advocate, said that a new system in California allows the FIB to pursue collections or deficient taxes that are more than 10 years old.

The FTB now has 20 years to collect, but the rules on calculating, the 20 years are more favorable to taxpayers than IRS rules.

R&TC Sec. 19255 was created to require the FTB to permanently abate unpaid debts...