Federal and state tax law do not always mirror each other. I have not researched CA law on whether or not you would still have the ability to offset current year income if you did not file in past years CA return(s) to report passive losses.
I would recommend you consult with a tax professional who would have this knowledge.
Also, just as an FYI, if you don't file a return in a particular state, the statute of limitations never starts. So this means instead of a normal 3 or 4 year statute of limitation it is indefinite until you begin filing tax returns.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
