Restitution orders

Overview

Under the California Constitution persons who suffer a loss due to a crime are entitled to seek restitution from the person convicted of the crime. We can seek restitution for economic losses as a result of a crime such as tax evasion, failure to file returns, forging a spouse's signature, etc. An economic loss in this situation is state income tax including penalties, interest, and costs of prosecution and investigation that the person fails to pay as a result of the crime for which they are found guilty.

Restitution orders awarded to us by a federal or state court will be collected as a delinquent tax liability. The criminal restitution order can also include the costs of investigation we incurred.

For restitution payments ordered by the State or Federal court made payable to Franchise Tax Board, please send payments to the address below. Include court case number and SSN on the check.

Entities

We can seek and be awarded restitution from the following entities:

  • Individuals
  • Estates
  • Trusts
  • C corporations
  • S corporations
  • General partnerships
  • Limited partnerships
  • Limited liability partnerships
  • Limited liability companies treated as partnerships
  • Limited liability partnerships treated as corporations
  • Exempt organizations with unrelated business income

Effective Date

Effective January 1, 2011, for amounts authorized to be collected for court-ordered restitution (COR) and cost of investigation (COI) that are due and payable to FTB before, on, or after January 1, 2011.

Restitution Amount

When we are awarded criminal restitution through a final court order, we will post these liabilities to the account of the taxpayer and collect the criminal restitution order as a final tax liability. We send a Statement of Tax Due notice (PIT) or Notice of Balance Due (BE) to notify the taxpayer of the amount owed. We can use all our collection authority (EWOTs, OTWs, state tax liens, etc.) to collect the criminal restitution order.

Interest

Interest on the criminal restitution order is charged from the date the order is posted to the taxpayer's account to the date paid. The rate of interest charged is the same as applied to tax deficiencies.

Request for waiver or abatement

Criminal restitution orders can only be waived or abated by a court order.

Criminal restitution orders are also not subject to the statute of limitations or claims for refund or credit, have no protest rights, and cannot be refunded or credited toward another delinquent tax liability.

References

Law Sections

Subject RT&C Section IRC Section
Restitution Orders 19722 None

Contact

Mail
Franchise Tax Board
CRIMINAL INVESTIGATION BUREAU MS-L9-3
PO Box 219
Rancho Cordova CA 95741-0219

For any time sensitive communications, please email us

CIBRestitutionPayments@ftb.ca.gov