Quote Originally Posted by David Merrill View Post
Fear is always illusion. The IRS agents are misled by fraudulent omissions by the IRS attorneys to prod you into reacting fearfully with $5K and $10K frivolous penalty letters and from there the paper system is designed to keep you reacting. Sometimes this system is exacerbated by the State taxation and especially with California's State Franchise Board, the state system of policies seems independent of the US' Federal Reserve's IRS Code.
The State revenue agencies at times have seemed more like willing captives to the FRB Franchise eager to get their share of crumbs from the Fed table. Similarly in there is the arrangement in Canada, except the sales and use tax are reserved to the States. Even the State of California FTB probably has an EIN.