The state was holding $46,640 of this business owner's money.
Angie M Grainger
Unfortunately, the Franchise Tax Board is never fast at letting you know you have extra money sitting in their hands.
And as a busy business owner it's easy for things to slip through the cracks, especially when relying on your accountant (who may not be up to your level of complexity).
But that is why having your books and records in tip-top shape gives you visibility into your numbers, and because our modern accounting system is a 'double-entry' system, when things are done right, nothing can be missed.
When a business owner came on board to establish their family office, we first started cleaning up their business books, reconciling all their accounts and setting up new books for their personal finances.
At one point, we were tracing the money from a sale of their commercial building back to their books, and it wasn't matching up. Using our forensic skills, we reviewed each line-by-line item on the escrow statement to make sure all the money was accounted for.
When we saw that the state Franchise Tax Board had withheld $46,640 from the sale of the building, it raised a flag for us.
We had already reviewed their tax returns and didn't recall seeing a tax payment claimed for $46,640 on their state tax return.
We called the Franchise Tax Board, and sure enough, it was just sitting their waiting for them to claim it, but their CPA and bookkeepers just plain missed it.
We immediately amended their return and got the $46,640 plus interest back for them.
This is the power of having control over your cash and well-kept books. Nothing will slip through the cracks.