New Top 500 Tax Debtors Unveiled
We released our first Top 500 Delinquent Taxpayer list. A new law (Assembly Bill 1424 – Perea, Ch 455) expanded the list of the largest unpaid state income tax delinquencies from 250 to 500 and gave us additional enforcement tools.
- The new law requires us to post a biannual list of the 500 largest state income tax debtors who owe more than $100,000. In addition to updating the list twice a year, new provisions in the law include:
- Publishing the names and titles of corporate officers of listed corporations.
- Publishing professional license information.
- Returning noncompliant taxpayers to the list.
- Authorizing us to enter into reciprocal agreements with other states to offset refunds and collect tax debt.
Additional provisions effective July 2012:
- Working with state licensing agencies to suspend licenses held by the Top 500 including driver’s licenses and occupational or professional licenses.
- Prohibiting state agencies from entering into contracts with the Top 500.
In November 2011, we mailed letters to individuals and businesses who could qualify to be listed if they do not resolve their outstanding liabilities. So far this year, we collected more than $25 million in payments from individuals and businesses seeking to pay their tax debt and to prevent their names from being publicly posted on this list. More than $118 million has been collected from the list since it was first posted in October 2007.
Taxpayers on the Top 500 list will be removed once the tax is paid or the taxpayer agrees to make payments under an approved installment agreement or offer in compromise. Tax liabilities under appeal, in litigation, or in bankruptcy proceedings are not included on the list.
Individual taxpayers on the list can contact us at 888.426.8555 to resolve their accounts. Business taxpayers can call 888.426.8751.
The complete list will be refreshed in October on our website at ftb.ca.gov. The Board of Equalization (BOE) has a similar list of the state’s top sales and use tax delinquencies, which is updated quarterly.