A progress report on the 20-year statute of limitationsThe Franchise Tax Board wrote off 373,819 liabilities during the period July 1, 2006, through May 30, 2007, for a total dollar amount of $3,219,766,558 under the new 20-year statute of limitations enacted as part of AB 911.
The 20-year statute of limitations on the collection of tax liabilities, as provided by Revenue and Taxation Code Section 19255, sets the period during which tax may be collected as up to 20 years from the last statutory lien date for each tax year. After that date, the liability for the tax year is written off. Before AB 911 became law, there was no statute of limitations on the collection of tax liabilities.
| 20-Year Statute of Limitations Results | July 1, 2006 – May 30, 2007 |
|---|---|
| Number of tax year liabilities written off | 373,819 |
| Dollar amount written off | $3,219,766,558 |