STATE GOVERNMENT FRAUD

NOTE: This article was prepared by a former member, please verify it for yourself.

There are no citations of any taxation law which gives any one of, or the whole of, the FTB, the  authority to issue such an  EARNINGS WITHHOLDING ORDER FOR TAXES, attaching the pay of a worker, for income tax claims it has against a worker.

The research into the law, statute, and regulatory authority of the FTB to execute such an action, he has found there are five separate places in the State Taxation Code where an earnings withholding such as this is mentioned, thus only the following sections of law confer such authority to the FTB. The sections of statutes are as follows:

Statutes Containing References to "earnings withholding"

Sec. 10878. Collection of certain delinquent amounts, taxes, interest, penalties, or service fees; responsibility and authority; implementation and administration of program.

Sec. 19271. Referral of child support delinquencies; collection by Franchise Tax Board

Sec. 19280. Fines, penalties, or forfeitures imposed for criminal offenses; collection by Franchise Tax Board; procedures; interest; construction

Sec. 19290. Delinquent fees, wages, penalties, and costs; collection by Franchise Tax Board; agreement; procedures. Department of Industrial Relations

It is plain to see that an FTB EARNINGS WITHHOLDING ORDER FOR TAXES is not for the purpose of collecting delinquent child support payments.

It is plain to see that an FTB EARNINGS WITHHOLDING ORDER FOR TAXES is not for the purpose of collecting fines and penalties imposed for a criminal offense.

It is plain to see that an FTB EARNINGS WITHHOLDING ORDER FOR TAXES is not for the purpose of collecting an amount owed to the Department of Industrial Relations.

 

So where is the statute?

That's a good question. We have not been able to find it in a search of the California Taxation Statutes via CD-ROM search engine.

So, by what authority is the FTB executing EARNINGS WITHHOLDING ORDER FOR TAXES? Obviously no statutory authority, as none can be found.

None of these Statutes pertain to a withholding order being applied to the pay of an employee or laborer for the sake of the Personal Income Tax. This is the law as enacted by the legislature of the State of California. It is apparent that the law is very specific and does not confer upon the FTB the ability to issue forth any Earnings Withholding Order upon the pay of anyone for the sake of income tax collection, as the U.S. Supreme Court has determined that the law makers of the Legislative Branch are taken to understand the laws that they are enacting and plainly set forth the law in the language used. The cases supporting this legal position are covered in the LAW 101 article.

It is a well established legal fact that the law means what it says, and there are no provisions for Earnings Withholding Orders to collect allegedly delinquent Personal Income Taxes, but the FTB has never been given any authority to issue such orders for collection of income taxes. We also can find no statute to support the application of the following State Regulation:

Section 18805-4. Withholding of Delinquent Taxes Due from Both Resident and Nonresident Taxpayers.  (correction §18662-4)

In addition to withholding from payments of income to nonresident taxpayers in accordance with the requirements of Regs. 18805-1 to 18805-4, the individuals, firms and companies mentioned in Reg. 18805-1 must, upon notice and demand from the Franchise Tax Board or its authorized representatives, withhold from any credits or other personal property or other things of value due any individual, estate or trust, the amount of any tax due under the law from such individual, estate or trust. Furthermore, effective May 30, 1957, firms and companies mentioned in 18805-1 must, upon notice and demand, withhold from any credits or other things of value the amount of any liability incurred by any person for his failure to withhold upon notice and demand amounts due under the law from a taxpayer. The amounts so withheld must be transmitted to the Franchise Tax Board immediately.

As you see, there is there is no statutory provision cited for this regulation's authority. This regulation obviously exists, but there is no statutory basis which I can find for it at this time.

Director Goldberg of the FTB has been repeatedly requested that he provide a copy of the statute giving his office authority to create and subsequently apply this regulation to the income taxation statutes, as we cannot find such authority even with the sophisticated search engines provided with State taxation statutes and regulations on CD-ROM. He has repeatedly failed to provide the statute his department is using in support of its actions.   If there is no statutory authority for this action, under what law has he been given Legislative Powers?

This information must be brought forward to the Public in California so that pressure can be created by the Public to have employers, as well as State revenue agents, stand down from participating in any action with the Director of the FTB until such time that he proves his statutory authority for his department to issue Earnings Withholding Orders for Income Taxes against a worker's pay.

Every time his office has been challenged, the Director has failed to provide this information. It is plain to see that nobody can prove a negative, and that the law allegedly giving the State FTB the legal authority to order the taking a worker’s money does not exist.

Could this be the precise reason why the Withholding Order is not executed by anyone?  As it would expose them to individual liability for an illegal action taken under Color of Law which is punishable under 18 U.S.C. (Federal Criminal Code) section 241 and 242 for violation of individual rights under Color of law, and conspiracy, as it enlisted the aid of the Employer.

I think that the fair Citizens of this fair State have endured the insolence and impudence of the FTB long enough. I suggest that all Californians correspond with their elected officials as well as Director Goldberg until the time the FTB reveals its statutory authority. Otherwise, I think the People of California might need to appeal to the Governor to correct all of this rank injustice and usurpation of the Power of the People and their Legislature. The usurpation and intentional disregard for limitations of Powers of the Executive Branch, by the Executive Branch, is an affront to the American Democratic principles of Government by the People.