Released: April 23, 2007
Failed to Report More Than $5.5 Million in Income
A Palm Desert couple was arrested today on three felony charges of filing fraudulent state income tax returns, according to the Franchise Tax Board (FTB).
William Greenberg, 63, and Marta S. Greenberg, 54, formerly owned and operated a furniture store in Tustin. The Greenbergs allegedly filed fraudulent 1999-2001 joint personal state income tax returns, and failed to report more than $5.5 million in income from the furniture store. FTB special investigators say the couple owes the state more than $500,000 in unpaid tax, penalties, interest, and the cost of the investigation. Each felony tax count carries a maximum sentence of three years in state prison.
Underreporting income is part of the $6.5 billion tax gap now facing California. The tax gap is the difference between the tax that is due and the tax that is paid.
Each year the FTB reviews income records from numerous sources, including the Internal Revenue Service, the California Employment Development Department, the Board of Equalization, employers, and banks. The FTB compares this data with its database of tax returns filed to identify individuals who should have filed taxes but didn't, or to find discrepancies between the income reported and income claimed.
The program annually identifies about 800,000 individuals, and collects nearly $500 million.
The Greenbergs were booked into the Riverside County Sheriff Station at Indio on $500,000 bail each. Arraignment is pending. Orange County Deputy District Attorney William Overtoom is prosecuting this case.