If you live or work in California then you are taxed by two income tax agencies: (1) The IRS at the federal level and (2) The Franchise Tax Board (FTB) at the state level. Many folks fear receiving a letter from the IRS, but at the end of the day, the IRS is usually pretty easy to work with. The FTB, on the other hand, has truly mastered its craft at chasing down taxpayers and asking them to pay more in taxes. Sometimes they are right, sometimes they are wrong, but they are always aggressive.
Our colleague Robert Wood has written an article at Forbes that talks more about the FTB.
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