My Partner’s Small Business Was Suddenly Seized Because All Notices Of A Tax/license In Ca She Was Supposed To Be Paying For 7 Years Went To The Wrong Address. What Can She Do?

Location: California

My partner’s small business is suddenly over/seized because her accountant put the wrong address on her state taxes (Edit: an old office building in CA), so she never got 7 years of warnings from government about fees she didn’t know she wasn’t paying. I need advice on how to help her.

From what I understand, a few weeks ago her bank accounts were suddenly seized for seemingly no reason. Apparently in California, there is an additional business license/tax she didn’t know about, but her accountant put her old address on all her state tax forms (which my girlfriend signed off on so lawyers here said no legal route there), so all notices didn’t get to her for 7 years.

The government didn’t try contacting her with her phone number or email on those tax forms, which were correct. Or any of her up-to-date business licenses or other tax forms, which are all correct. It’s because of one wrong address on that one specific tax form. She pays her taxes and business license(s) every year, I don’t know why they didn’t try to contact her in another way since she clearly paid everything else on time and was in good standing. The State of California Franchise Tax Board told her that they don’t look at any other forms ever, so it’s still her fault.

Penalties racked up over 7 years, an entire court case with the state was had and the government won automatically since she didn’t show up (because again she never got a single notice about it), and now she has 6 figures in debt and if she tries to open a bank account everything will immediately be seized. She tried getting a 100-X filed but this happened right before tax date (4/15) so no accountants could help her, and when she tried to do it herself, the Tax Board people said it was completely wrong and would only make her situation worse.

Attorneys and free counsel here all say there’s nothing to do. I’m at a loss. She started this company when she was homeless in her early 20’s and it was her whole life. Worse, now she’s going to be in severe debt for the rest of her life. She can try to reverse this but she legally can’t for at least 15 months, and she has loans and employees to pay which she can’t anymore, which will only worsen the debt and of course destroy her business and good credit.

Is there anything I can do to help her? She always told me she could handle her business failing slowly over time, but the fact that her company was suddenly seized without her ever knowing this was happening is what’s really depressing her and me. All because of one wrong address. I don’t know. I’m at a loss of how to help her. Any and all advice welcome.

EDIT: Thank you everyone for trying to help, by the way. I’m not in business or finance at all so a lot of this is over my head and I don’t know the full details. So I apologize if it seems info is missing because I personally don’t know everything. I promise this is real and that she was never served court papers in person, or by email, or by phone.

EDIT 2: additional info regarding money/finances/income

She runs a film post-production and film restoration and film preservation business. I know she pays many taxes to CA already, I don’t know specifically which one is the issue right now.

Another issue is her accountant was putting her income as money she hadn’t been paid yet — she gets clients who will ‘pay her’ $400,000 for a job for example (not real number), but she can’t do it until she gets at least $100,000 in capital. So she has back orders on jobs she NEVER received money for, but the accountant put it as income she’s received. That’s the other issue I forgot to put in the main post.

Sorry again I wish I had more info. I’ll try to get more later. I really appreciate all the help. Truly.