State’s top 500 tax delinquencies exceed $688 million

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04/19/2019

State’s top 500 tax delinquencies exceed $688 million

Sacramento – The Franchise Tax Board (FTB) published its latest Top 500 Delinquent Taxpayers list, which includes individuals and businesses that collectively owe the state more than $688,068,209 in state income tax.

In February, FTB sent letters to taxpayers scheduled to appear on the list. Of those taxpayers, 112 made arrangements to pay their tax debt. Another 309 individuals and 79 businesses did not, resulting in their inclusion.

The Top 500 list is published twice per year. Since the Top 500 program began in 2007, FTB has collected more than $947 million from delinquent taxpayers.

Delinquent taxpayers face an array of consequences:

  • If they hold a professional or occupational license, that information is noted on the list and the license may be suspended until the tax bill is resolved.
  • The state may suspend the delinquent taxpayer’s driver license until the tax bill is resolved.
  • State agencies are prohibited from entering into contracts for the acquisition of goods or services with listed taxpayers.
  • FTB publishes the names and titles of corporate principal officers.

FTB removes a taxpayer from the list once the debt is paid, or once the taxpayer agrees to make payments under an approved agreement or compromise. People with tax liabilities who have filed for bankruptcy protection are not included.

Individual taxpayers can call (888) 426-8555 to resolve their accounts. Business taxpayers can call (888) 426-8751.

The California Department of Tax and Fee Administration has a similar list of the state’s top sales and use tax debtors.

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 70 percent of the state’s general fund. For more information on other taxes and fees in California, visit: taxes.ca.gov.