State’s Top 500 Tax Delinquencies Total $151 Million
For Immediate Release
Sacramento — The Franchise Tax Board (FTB) today published its latest Top 500 Delinquent Taxpayers list, which includes individuals and businesses that collectively owe the state more than $151 million in state income tax.
In February, FTB sent letters to taxpayers scheduled to appear on the list. Of these taxpayers, 108 made arrangements to pay their tax debt. Another 330 individuals and 62 businesses did not, resulting in their inclusion on the list.
The Top 500 list is published twice per year in April and October. This April’s posting was postponed due to COVID-19. Since the list’s inception in October 2007, the potential for inclusion has motivated delinquent taxpayers to pay back more than $1 billion.
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 subject to suspension until the tax bill is resolved.
- The delinquent taxpayer’s driver’s license may be subject to suspension 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, with potential professional repercussions.
- 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 excluded from 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.