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Clamping down on businesses that haven't filed returns

FTB will notify 30,000 businesses that they must file their overdue 2004 tax returns in 30 days, or justify why filing is unnecessary. Businesses ignoring the notice face tax assessments with penalties, and fees of up to 50 percent of the taxes owed.

Each year FTB reviews corporate income records from the Internal Revenue Service, Employment Development Department, Board of Equalization, employers, and banks. We compare the income data with the database of filed tax returns to identify businesses that should have filed, but didn't.

The three counties receiving the largest number of notices are Los Angeles (7,380), Orange (2,255), and San Diego (1,850). See the table below for information on the number of notices sent to each county.

A similar FTB program detects individual taxpayers who earned income but didn't file returns. That program annually identifies about 800,000 people and collects nearly $500 million.

If any of your business clients receive one of our notices, get information at www.ftb.ca.gov/inc or call (800) 478-7194.

County
# Of Demand Letters
County
# Of Demand Letters
County
# Of Demand Letters
Alameda 680 Marin 191 San Mateo 396
Alpine Unavailable Mariposa Unavailable Santa Barbara 148
Amador Unavailable Mendocino 20 Santa Clara 1,046
Butte 40 Merced 24 Santa Cruz 94
Calaveras Unavailable Modoc Unavailable Shasta 39
Colusa Unavailable Mono Unavailable Sierra Unavailable
Contra Costa 437 Monterey 95 Siskiyou 11
Del Norte Unavailable Napa 47 Solano 96
El Dorado 66 Nevada 43 Sonoma 134
Fresno 172 Orange 2,255 Stanislaus 105
Glenn Unavailable Placer 319 Sutter 16
Humboldt 10 Plumas Unavailable Tehama 20
Imperial 20 Riverside 809 Trinity  
Inyo Unavailable Sacramento 401 Tulare 54
Kern 128 San Benito 11 Tuolumne 11
Kings Unavailable San Bernardino 662 Ventura 398
Lake 10 San Diego 1850 Yolo 62
Lassen Unavailable San Francisco 587 Yuba Unavailable
Los Angeles 7,380 San Joaquin 130    
Madera 14 San Luis Obispo 67