logo
The most trusted and popular consumer complaints website
Follow us
Connect With: Connect with Facebook Connect with Yahoo Connect with Google Connect with Twitter Connect with LinkedIn

Share with Others

Recently Discussed Complaints

1. (30 mins ago)
Nexwaysoftware.com
Avast Renewal without Permission
2. (35 mins ago)
TheHorizonOutlet.com
Misleading credit card company!
3. (46 mins ago)
Sharetipsinfo.com is fake and fraud
Fake and Fraud Site
4. (1 hr 4 mins ago)
Black Boat Hairs
very bad and untrustable company
5. (1 hr 15 mins ago)
Green Dot Corporation
Lost funds

Consumer Tips & Tricks

Latest News & Stories

Latest Questions

California Franchise Tax Board, California Complaints & Reviews - Tax credit unfair practice for First time home owner

California Franchise Tax Board Contacts & Informations

California Franchise Tax Board

Posted: 2011-01-22 by    lichtran

Tax credit unfair practice for First time home owner

Complaint Rating:  7 % with 30 votes
Contact information:
California Franchise Tax Board
California
United States
I would like to file a complaint for your record about Tax credit unfair practice for First time home owner.
 
On March 26, 2010, AB 183 was passed by the legislature on March 22 and gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers; The credit will be extended from May 1, 2010 to December 31, 2010. The tax credit will be available to buyers on a first-come, first-served basis and is applied in equal amounts over a period of three taxable years.
 
Yet the AB does not say a limit 14 days after the closing of escrow.  At that time most people believe that it would be the same as  IRS Credit for first time home owner.
 
I bought my first home and closed escrow account on 05/19/2010.  My realtor as well as the escrow employees did not know about this 14 days limit. No body told me about that until I visited FTB website on 06/07/2010. Even though, it was late 5 days, I faxed my application on that day. And my application was denied.
 
There is only Website of  FTB saying about this limit.  The time from the date signed by Governor Schwarzenegger to the date my escrow closed was too short to spread the information of the 14 days limit imposed by FTB.  I believe it is unfair and unethical practice. It is unfair because it is not a first-come, first-served basis as the law said.  I submitted application and bought a house first, but my application was denied because 14 day limit. Whereas, other homeowners bought a house after me and submitted application after mine, but their application were approved.
  
FTB should announce clearly and widely on radio, TV, not only on its website and should allow the time enough for the information reach the recipients.   
FTB should do more and clear because normal people may assume it is the same as IRS.  I believe that FTB law of 14 day limitation is not a mirror of Governor Schwarzenegger mind.
 
If you visit this web site on 03/26/2010 you can see no info about 14 days limit law of FTB.
 
http://california.realestaterama.com/2010/03/26/governor-schwarzenegger-signs-10000-homebuyer-tax-credit-legislation-ID0583.html

FTB 14 days annoucement
http://www.ftb.ca.gov/individuals/new_home_credit.shtml?WT.mc_id=HP_Feature_HomeCredit_Hed
Comments United States Government & Police
Share with others:  
Was the above complaint useful to you?    


Comments

Sort by: Date | Rating
 24th of Jan, 2011 by   lichtran 0 Votes
The funny thing is that they allow "Reserving a New Home Credit Before Escrow Closes" and
then FTB cry out :"... As shown in the numbers below, we have received New Home Credit reservation requests and applications claiming more than $100 million. Since many of these are duplicate, invalid, revised, for purchases that have been cancelled, or include both a reservation request and application for the same property, we will accept at least 26, 000 total reservation requests and applications...The numbers are overstated as there are duplicate, revised, and invalid applications included. In addition, some purchases may be included twice if we have received both a reservation request and an application for the purchase. These ... Applications must be faxed ... Due to the high volume of faxes we are receiving, ... "

What a waste of time and money for taxpayers!

Why they do not learn the simple from IRS or limit the work load as:

"Accepting only application that the selling/buying is done completly such as Settlement Statement (HUD-1), read Instructions for Form 5405 from IRS. If they want to limit due to budget limit, then a first-come, first-served basis and the first 10, 000 ($100, 000, 000/$10, 000) application.

Stupid public people create $365, 649, 408, 999 California debt
http://www.usdebtclock.org/state-debt-clocks/state-of-california-debt-clock.html
 24th of Jan, 2011 by   lichtran 0 Votes
The AB183 really says about "two weeks limit". Therefore the tile will change to *** California Tax Credit AB 183 violates first-come, first-served basis*** http://www.tranlich.com/AB183/
 24th of Jan, 2011 by   jabbercali 0 Votes
I completely agree. This happened to me with with a purchase of a new condo unit for my family. I was fully expecting to use the additional monies as a larger payment for the house. Now, I'm likely to consider foreclosure. Basically, a law that was desgined to stimulate the real estate economy and home-ownership is basically doing the reverse. I wonder what regualr people new about the 14 day deadline which does not make any sense at all. Why not reduce the amount so more people have access to the tax credit. CA needs to learn from the Fed tax credit.
 25th of Jan, 2011 by   lichtran 0 Votes
Here is a replied from FTB

Thank you for visiting the FTB website.

AB 183 does establish a 14 day deadline to receive your application in Section 17059.1.c.1.A and also Section 17059.1.h. The 14 day deadline was an increase from the deadline for the 2009 New Home Credit which was 7 days. As for spreading information about the program there were articles in newspapers and television reports from beginning of March 2010. While all these would get the word out about the program it is the buyer responsibility to find out all the details of the program when they apply for it. The most important place we could put the 14 day deadline would be on the instructions for the application. The deadline is stated on the instructions for the application in several sections to make it clear as you fill out the application. The link you provided was just a published article not the actual bill, I have attached a copy of the bill for you to review.

Please visit our website again if we can assist you further.

My answer:

 From: Lich
Sent: Tuesday, January 25, 2011 6:53 AM
To: 'WSCS.GEN'
Subject: RE: Homebuyer Tax credit unfair practice.

Dear Sir,

It was my error to complaint the FTB. I am very sorry.

Still, AB 183 is unfair and unethical assembly bill. It should be amended. I have filed my complaint to Attorney General, Governor, California Congress and also put the complaint to Internet, blogs, facebooks, twitter …. as much as I can. I also asked Senator and Assembly men in my district.

This unfair unethical law may contain “Reserving New Home Credit to benefit one specific group secretly.” It really is a wrong way to create a hostile environment for our society. How can we account for the fairness of a first-come, first-served basis?

Why did not reduce the amount so more people have access to the tax credit.? Why not $2000 for each?
Why was not based on Closing account Date for the first 10, 000 application?
Why there was a too shot time of only two weeks? Not three months? Buying/selling a house is not the same as a car.

Thank you very much for your great service, it is not FTB false. It is the congress wrong doing.
Also I will use you your email to complaint my realtor and loan officers to BBB, FTC, and State Board because they email me encourage to buy a house for $10, 000 credit. And I relied on their message. But they failed to notify me 14 days limit.

Respectfully,
 26th of Jan, 2011 by   lichtran 0 Votes
more info at http://www.tranlich.com/AB183/
 27th of Jan, 2011 by   lichtran 0 Votes
If you are victim like me, please email to your legislators about this unfair unethical practice.

You may edit my email and send to:


http://www.tranlich.com/AB183/email_congress.htm


http://www.sen.ca.gov/~newsen/senators/senemail.htp


http://www.assembly.ca.gov/clerk/MEMBERINFORMATION/memberdir_1.asp


I collect public opinion about AB183, please see update at:
http://www.tranlich.com/AB183/
 3rd of Mar, 2011 by   Claireannette 0 Votes
The same thing happened to us when we bought a KHovnanian home. No one knew about the 14 day limit, so we were denied. We would have gotten $8700 credit. Our reservation was sent in on time, and we thought we would just apply the credit to our tax bill. We are on fixed incomes and this hurts very much.
Claire in Livingston, CA

Post your Comment

Please check text spelling before submitting a comment
Your attitude towards ComplaintAgree Neutral Disagree
Comment text
Attach photos (optional)

Videos

Lessons from the Crash of 1987

Latest Groups

Today's Mess-Up Photo


RSS Feed
bdomains.com
loading
     
 
Login close
Email:
Password:

Forgot your password?