Our Skadden Fellow, Ariel Stevenson, recently assisted an elderly monolingual Spanish couple with a tax dispute. The California Franchise Tax Board has assessed these clients a tax liability of $10,700 for tax year 2010 because a casino misreported the wife’s winnings as $140,000 rather than the actual amount of $1,400. Unable to understand the tax liability notices, the clients did not respond. Eventually the Franchise Tax Board issued a wage garnishment against the husband to collect the debt. With the support of Michelle Gonzalez, Ariel stopped the wage garnishment and filed an audit appeal. This week, the Franchise Tax Board reversed its previous determination and cancelled the liability. As a result of Ariel’s representation, the clients are no longer facing this $10,700 debt. In fact, the Franchise Tax Board is refunding them $600 in overpaid taxes.
If you have a tax dispute with the Internal Revenue Service or the California Franchise Tax Board, please call Bet Tzedek at (323) 939-0506 to see if you are eligible for assistance.