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Westly Clamps Down on Delinquent Taxpayers

SACRAMENTO – State Controller and Franchise Tax Board Chair Steve Westly today notified 30,000 California businesses, which earned income but did not file state tax returns, to pay what they owe or face penalties.

"We will keep clamping down on corporate tax cheats to ensure they pay their fair share,“ Westly said. ”Honest taxpayers shouldn't have to pay more because corporate cheats break the rules."

According to the Franchise Tax Board (FTB), honest taxpayers pay as much as 20 percent more to make up the difference for those who cheat.

Each year the FTB reviews corporate income records from the Internal Revenue Service, the State Employment Development Department, the State Board of Equalization, employers, and banks. The FTB compares the income data with its database of tax returns filed to identify businesses that should have filed taxes but didn’t. Today’s action relates to tax returns that should have been filed for the 2004 tax year.

The FTB will notify the 30,000 businesses that they must file their overdue tax returns in 30 days or justify why filing is unnecessary. Businesses ignoring the notice face tax assessments with penalties and fees of up to 50 percent of the taxes owed.

A similar FTB program detects individual taxpayers who earned income but didn’t file returns. That program annually identifies about 800,000 people and collects nearly $500 million.

Westly said California does not collect $6.5 billion owed in taxes every year. Westly has led collection programs and tax cheat crackdowns that have brought in more than $5 billion to the State.

Businesses receiving the FTB notice may find information at www.ftb.ca.gov/inc or by calling (800) 478-7194.

Please see attached county statistics.

County
Number of Demand Letters
County
Number of Demand Letters
County
Number of Demand Letters
County
Number of Demand Letters
Alameda
680
Kern
128
Placer
319
Shasta
39
Alpine
N/A
Kings
N/A
Plumas
N/A
Sierra
N/A
Amador
N/A
Lake
10
Riverside
809
Siskiyou
11
Butte
40
Los Angeles
7,380
Sacramento
401
Solano
96
Calaveras
N/A
Madera
14
San Benito
11
Sonoma
134
Colusa
N/A
Marin
191
San Bernardino
662
Stanislaus
105
Contra Costa
437
Mariposa
N/A
San Diego
1850
Sutter
16
Del Norte
N/A
Mendocino
20
San Francisco
587
Tehama
20
El Dorado
66
Merced
24
San Joaquin
130
Tulare
54
Fresno
172
Mono
N/A
San Luis Obispo
67
Tuolumne
11
Glenn
N/A
Monterey
95
San Mateo
396
Ventura
398
Humboldt
10
Napa
47
Santa Barbara
148
Yolo
62
Imperial
20
Nevada
43
Santa Clara
1,046
Yuba
N/A
Inyo
N/A
Orange
2,255
Santa Cruz
94