How Community Tax Makes a Difference: A Client Success Story

In early 2015, one of our clients attempted to withdraw funds from her bank account, but to her surprise she discovered that there were no funds in the account! When she asked the bank what had happened, she was hit with the shock of a lifetime. The State of California’s Department of Revenue had taken $18,778 from her account to satisfy a tax debt from 1991. The taxpayer was left completely in the dark and had no idea California held a debt against her. She promptly called Community Tax to figure out what had happened and how she could get her money back.

After speaking with our client and the State of California, the details of her story began to emerge. In 1991 she had sold a vacant lot with her now ex-husband. Because she and her ex-husband had taken a loss on the sale of the land, she never thought there was any need to file. Later, she moved out of California and was never informed of any problem or debt obligation. Meanwhile, California had filed a return for her with the full sales price of the land and assessed taxes, interest, and penalties of $18,778. In 2015, the State of California located her bank account and levied the $18,778 to satisfy her debt.

The taxpayer and I worked closely together to uncover as many details as we could from the 1991 transaction. She recalled all that she could from her memory, and we searched all the public records for real property that were available online. I was able to prepare her 1991 tax return (with forms from 25 years ago!) with all the correct details from the transaction, proving she had indeed incurred a loss on the sale. We submitted the tax return to California and last week received word that California accepted it. She will soon be receiving a refund check for the full amount of $18,778 that was levied against her!

This is just one of our many success stories we’ve been able to provide for our clients. We are truly pleased to help our clients in any way possible here at Community Tax, and there is nothing more rewarding than the happiness of our clients!