Franchise tax board notice

I had a small business a couple years ago, I was a hot food vendor at a farmers market. I started the business in late 2016 and only worked one day. I did however write off all my equipment (under $10k) for the 2016 tax year. The one day I worked in 2016 could’ve only had at most $140 in sales.

I did the market vendor one day a week (if weather was good) for a few months in 2017 but eventually gave up because I was taking too many losses for overhead and not making profit.

Anyway fast forward to now, I received a letter in the mail from the IRS and I look back at my TurboTax for 2016 & 2017 and do not see any sales listed, I only see my deductions for equipment purchased etc.. I also cannot log into the California Board of Equalization site to get any historical data. So it looks like I didn’t claim any sales. When I look back at our data from Square app (which we started using after the first month) it shows under $1,700 in sales.

Any suggestions on how to proceed, can I just dissolve the llc, do I need to pay the FTB? Any input is appreciated.

I cannot attach the image but form (FTB 765) reads:

**Payment Received – Missing Tax Return**

View Reddit by Fwhite77View Source

What do you think?

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  1. You need a tax accountant.

    It raised flags because you wrote off the entire amount in one year. The cart has life and should be depreciated. You made mistakes and need to fix it. If you don’t have access to your sales records, then youre going to have to come to some type of settlement

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