State’s Top 500 Tax Delinquencies Total Nearly $179 Million
For Immediate Release
Sacramento — The Franchise Tax Board (FTB) today published its newest Top 500 Delinquent Taxpayers list, which includes individuals and businesses that collectively owe the state more than $178 million in income tax.
In August, FTB sent letters to taxpayers scheduled to appear on the list. Of these taxpayers, 125 made arrangements to pay their tax debt. Another 316 individuals and 59 businesses did not, resulting in their inclusion on the list.
The Top 500 list is published in April and October. Due to Covid-19 impacts, the list was published in July and November for 2020. Since the list’s inception in October 2007, FTB has collected more than $1 billion from delinquent taxpayers through the program.
Delinquent taxpayers on the list 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’s 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 principal officers of corporations on the list.
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. Tax liabilities for which the persons liable have filed for bankruptcy protection are not included on the list.
Individual taxpayers on the list 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, which is updated quarterly.
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.