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Multistate Refund Offset Notices Sent to Delinquent Taxpayers with a New York Address

Purpose of Bulletin

To inform staff that approximately 11,000 FTB 4940 PC, Multistate Refund Offset Notice letters were sent during May, 2013. The letters were sent to Personal Income Tax (PIT) taxpayers with delinquent California income tax liabilities and a New York state address to offset their New York State tax refund.

Background

AB 1424, chaptered October 4, 2011 added Revenue and Taxation Code Section 19377.5, granting FTB the authority to enter into reciprocal agreements with other states to offset refunds to pay PIT debts owed to the partner state. These agreements enhance our ability to collect from taxpayers who reside out of state. The only state that FTB is partnering with at this time is New York.

Multistate Refund Offset Notice

Between May 21-24, 2013, we mailed FTB 4940 PC, Multistate Refund Offset Notice to instruct taxpayers in order to avoid an offset, they must:

  • Pay the balance in full.
  • Provide evidence that the debt is not past due or not legally enforceable.

The letters also stated that if taxpayers do not respond within 30 days, FTB will submit their balance due to the New York State Department of Taxation and Finance to offset eligible income tax refunds due to them.

NOTE: Future delinquent taxpayers with a New York address may receive potential refund offset language in the FTB 1140 insert. The results from this one-time mailing will determine whether we will issue a separate Multistate Refund Offset Notice.

Taxpayer Inquiries

The Offset Program Team (OPT) ACD telephone number will be on the notices. Additional information will be available in the RACK.

If you are contacted by a taxpayer who received a Multistate Refund Offset Notice, direct them to:

  • OPT ACD telephone number: 916.845.2867

Media contacts should be directed to:

  • Public Affairs at 916.845.4800