Increase in Annual Notices
During the period of November 2012 through January 2013, we will send about 300,000 annual notices to taxpayers that have not received a notice in the previous year. The vast majority of these taxpayers’ debts had been deemed to be uncollectable and, therefore, previously discharged from accountability pursuant to Government Code 13940. Placing accounts in a discharged status because we deem the account currently uncollectable does not discharge the underlying liability, but merely places accounts in an uncollectible status until we locate additional assets or the statute of limitations on collections expires.
R&TC Section 21023 requires us to give written notification once a year to all taxpayers with a tax delinquency detailing their delinquent balance due as of the date of the notice. This legal requirement excludes accounts that have been discharged from accountability and accounts where we have record of returned mail and no other mailable address is found.
This year, we extend the annual notice process to taxpayers with debts currently discharged from accountability. We do so to provide better service and notification to taxpayers as a reminder of their outstanding tax liability. Accounts discharged from accountability because we deemed them uncollectable are still subject to potential collection actions. The annual notice will provide a breakdown of the balance due with penalties and interest. However, before we begin formal collection actions, the taxpayer will receive an additional balance due notice 30 days before taking any involuntary collection action.
We have additional accounts that will not receive an annual notice this year because we show returned mail for the taxpayer’s address on file and have not found another mailable address. Please encourage your clients to update their account address with us to ensure they receive future notices. We offer several ways for you and/or your clients to report a change of address.