California State Tax

[atckrt]

I received a notice for proposed assessment for CA tax that I owe CA tax for 2021.  I used to work and live in CA, but moved in 2017 overseas to work as a government civilian employee overseas. I changed my residency to Texas, by changing my driver's license, registering my car in Texas, selling my home in CA and utilizing my parents home as a home of record. Therefore, I never needed to file state taxes with CA except for the first year (2017) when I was a CA resident for part of the year. After my tour in Japan, do to the lack of job availability else where, I ended up returning to CA in 2022 to work. I am back overseas now, but today I received a notice for unfiled taxes for 2021. Since I wasn't a resident, didn't have a CA driver's license, didn't earn any income in the state, nor did I live in the state in any part of 2021, Do I need to pay or file for CA income tax?

Obviously after I returned to CA, I reclaimed residency there, but that was in 2022. I don't have Texas license anymore, nor any documentation besides my 2021 W-2 to prove that I wasn't in nor part of CA. What can I do for the Notice of Proposed assessment which includes delinquent penalty and interest.

[BillM223]

Once you have residency in a state, the state generally assumes that you remain a resident (and hence are liable for taxes) every year after that, until you show that you have changed your residency. That is, you must take positive steps to change your residency.

That is, you remained a California resident even after you moved overseas, until such point as you have established residency in a new state.

Ways to show that you have established a new residency are (1) drivers license, (2) voters registration, (3) ownership of property, (4) utilities, (5) landline phone, and (6) where you tell your friends where you live (i.e., your address).

Did your parents live in California? What do you mean by "home of record"? This is a term used by military members who declare a state of record no matter where they happen to be stationed. If a soldier declares California to be his/her home of record, then he/she owes taxes to California, no matter where he/she is stationed.

I assume that you did not mean to declare California as your home of record for tax purposes. In replying to the CA Franchise Tax Board, you will need to demonstrate all the reasons that you changed your residency to Texas. It will help that you actually lived in Texas at some point. I have doubts that the CA FTB will accept your statement that you changed your residency to Texas, without having some actual connection to Texas.