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Amnesty installment agreement default letters to be mailed

PURPOSE OF BULLETIN

To advise staff that we will mail Statement of Tax Due notices July 26 and July 27, 2006 for taxpayers who did not complete their amnesty installment agreements. Statement of Tax Due notices will be mailed July 26, 2006 to Business Entity accounts and July 27, 2006 to Personal Income Taxpayers.

BACKGROUND

Taxpayers and business entities that applied for amnesty, for tax years 2002 and prior, agreed to certain requirements in order to have their penalties forgiven.

Taxpayers agreed either to:

  • Pay in full by May 31, 2005, or
  • Complete an amnesty installment agreement by June 30, 2006.

Some taxpayers failed to complete their installment agreement obligations. As such, FTB will restore the taxpayer's previously waived penalties and asses the 50% Interest Based Amnesty Penalty.

EFFECTIVE DATE AND VOLUMES

The Statement of Tax Due notice dates and projected volumes are:

  Date Volume
BE July 26, 2006 711
PIT July 27, 2006 3,037

THE DEFAULT PROCESS

The tax amnesty indicator will change from:

  • PIT (TI): A (Active) to D (Default). Any P (Pending) statuses will remain the same.
  • BE (BETS): Y (yes) to N (no).

For Personal Income Tax and Business Entity accounts the following actions will be the same:

  • Original penalty and fee values will be restored to the tax year.
  • 50% Interest Based Penalty will be assessed.
  • Notice of Balance due or Statement of Income Tax Due will be issued.

 

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