Sacramento –The Franchise Tax Board (FTB) today updated its Top 500 Delinquent Taxpayers list with 275 individuals and 72 businesses comprising the new list. Combined they owe the state more than $161 million.
In October, FTB sent letters to 500 taxpayers who potentially could appear on the list if they failed to resolve their tax liabilities. 153 taxpayers resolved their accounts prior to the list’s publication. More than $316 million has been collected from the top debtors program since its October 2007 inception.
Being on the Top 500 Delinquent Taxpayer list carries added provisions, including:
- Suspension of state-issued licenses including driver’s licenses and occupational or professional licenses.
- Publishing professional license information.
- Prohibiting state agencies from entering into contracts with listed debtors.
- Returning noncompliant taxpayers to the list.
- Publishing the names and titles of corporate officers of listed corporations.
FTB removes a taxpayer from the list once the tax is paid or the taxpayer agrees to make payments under an approved installment agreement or offer in compromise. Tax liabilities under appeal, in litigation, or in bankruptcy proceedings are not included on the list.
Individuals on the list can contact FTB at 888.426.8555 to resolve their accounts. Business taxpayers can call 888.426.8751.
The Top 500 list is published twice a year in April and October.
FTB administers two of California’s major tax programs: Personal Income Tax and the Corporation Tax. FTB also administers other non tax programs and delinquent debt collection functions, including delinquent vehicle registration debt collections on behalf of the Department of Motor Vehicles, and court–ordered debt. Annually, FTB’s tax programs collect more than 65 percent of the state’s general fund.
The Board of Equalization has a similar list of the state’s top sales and use tax delinquencies, which they update quarterly.