By using the Administrative Procedure and Appeals process before the State Board of Equalization (SBE), the arguments using Federal tax law that the State tax law is built upon, which the State FTB cannot rebut, and the SBE does not want to decide.

It must be confessed at this time that, in the beginning, of the erroneous belief that jurisdiction was the key to winning these cases, but has instead seen it proved that understanding the evidence, and exposing the alleged evidence against the person for what it truly is under the law, has given success in the State's venue.

Hats off to the State of California SBE for not ignoring the letter of the law. This is one state where someone is honest. We wish the same could be said for the State of Alabama where the Tax Commissioner and the Governor have revealed that they understand that the IRS provides the State Department of Revenue with false and fallacious information, but continues to proceed against the alleged tax debtor anyway.

In a State where they are fighting to keep the TEN COMMANDMENTS in the Courts, it is disgusting to see that they honor the claims of a known false witness to aid them in stealing from the People of the State of Alabama.

As for other States such as the State of Maryland, those standing up for their rights have found that the Maryland Administrative Code requires that the Comptroller of the Treasury and other Department heads must write regulations to support forms and procedures regarding the public. Yet, there does not seem to be a Judge on the bench who is willing to enforce the laws as enacted by the Legislature of the State of Maryland.

In fact, research in one case found that the Office of Compliance, which administered the Appeals Hearings had no such authority in the regulations, but that it was the Manager of the Audit Section. We also could find no reference in any regulation giving the Office of Compliance any authority to do anything.

Each state is different in the wording of its laws and therefore, that which it is technically taxing, can also be different. Still, all roads lead to the Federal Internal Revenue Code and the definition of "Gross income". That is the only way that the States can ride on the back of the Federal assessments and collections, which they all receive information regarding, in violation of 26 U.S.C. § 6103(d)(1).

The reason we say that the States receive the tax information from the IRS illegally, is because the State Taxation Directors have not been able to produce the required, written request, for the return information, as set forth in IRC § 6103(d)(1).

These are the best hints that we can provide regarding State Taxation at this time, but those who need more help and a strategy, can access this through our Strategies section.

In addition to the above information we have  more information for the people of the State of California.

For more years than we know, the State of California Franchise Tax Board has been collecting what they have believed to be delinquent income taxes from workers' pay by issuing a document called a "EARNINGS WITHHOLDING ORDER".

In our efforts to help those who have had such orders issued against their pay we performed a search of the State tax laws to find out the laws that provide for the legal procedure for making a WITHHOLDING ORDER. In this search we found laws giving the FTB authority to use WITHHOLDING ORDER(s) at § 10878 for the collection of License fees and penalties, and § 19280 for the collection of penalties relating to criminal prosecution, § 19271 for the collection of child support payments, and § 19290 for the collection of amounts owed to the Department of Industrial Relations.

Should you perform your own search you will plainly see that the Legislature of the State has given specific authority to the FTB. This is necessary as one of the foundational principles of American Law is that all law is limited in nature, so the FTB does not have any authority, to do anything, unless a law has been specifically enacted to give it the specific authority for a specific action.

So, where is the statutory authority for the FTB to use a WITHHOLDING ORDER to take the pay of a worker for the failure to pay the income taxes it believes are owed?

There is none as far as we can find, although we did find a regulation providing for a WITHHOLDING ORDER for the collection of income taxes. The regulation only provides for withholding from non-residents of the State, and those who are required by law to withhold income taxes and fail to pay and/or withhold the tax. Still, there is no statute in existence to support the creation of the regulation.

It appears that the FTB, Legislature, Governor, and the attorney General of the State of California have some serious questions to answer.

We have already worked at asking the serious questions, and to no one's surprise, nobody in Sacramento has bothered to respond. It is apparent that the State of California does not want to take any responsibility for taking thousands of workers' money, by coercing employers without the support of any law. Do the People of California care? Do they think that their Government should abide by the limitations of the laws it enacts?

Californians can access the Political Action Letters we have created for letting your employer know the law, and to let your State Officials know that you now know the truth, and want them to prove the research erroneous, or return people's money and rein in the lawlessness of the FTB regarding its abuse of its limited authority, regarding the WITHHOLDING ORDER process.