Notice of Public Disclosure of Tax DelinquencyNovember 2021 Tax News

FTB Updates the Top 500 Delinquent Taxpayers List for State Income Taxes

Franchise Tax Board (FTB) is required by law to publish a list of the 500 largest tax delinquencies in excess of $100,000 twice a year and update the list when names are removed. The list is replaced when a new list is published. For 2021, the list was published in April and again in October.

The intent of this program is to encourage those who are on the list (or may be placed on the list) to pay their outstanding tax liabilities. Since the list’s inception in October 2007, FTB has collected more than $1.3 billion from delinquent taxpayers through the program.

In August, FTB sent letters to taxpayers scheduled to appear on the list (Notice of Tax Delinquencies – FTB 4192). This letter gives the taxpayer at least 30 days to avoid being placed on this list. Of these taxpayers, 143 made arrangements to pay their tax debt. Another 298 individuals, and 59 businesses did not, resulting in their inclusion on the list.

On October 21, FTB published its newest Top 500 Delinquent Taxpayers list, which includes individuals and businesses that collectively owe the state more than $169 million in income tax.

Delinquent taxpayers on the list face an array of consequences:

• Holders of professional or occupational licenses will have that information noted on the list and the licenses may be suspended until the tax bill is resolved.
• The state may suspend delinquent taxpayers’ driver’s license 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.

FTB removes a taxpayer from the list once the debt is paid, the taxpayer agrees to make payments under an approved agreement, or another agreed upon resolution. Tax liabilities for which the persons liable have filed for bankruptcy protection are not included on the list.

Individual taxpayers on the list can call 888-426-8555 to resolve their accounts.

Business taxpayers on the list can call 888-426-8751 to resolve their accounts.

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.