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Disclosure of list of corporations under audit

On September 20, 2006, an FTB employee in charge of monitoring the timely completion of audits inadvertently disclosed information about 256 corporations. The disclosed information includes the corporation name, California corporate number, first and last tax year, name of the auditor, and assigned status. No tax return financial information was disclosed.

On September 22, 2006, we sent letters to all affected corporations, notifying them of the incident.

In addition to notifying the affected corporations, we are taking these immediate, preventive steps:

  • Removing the mail ID accidentally used by the employee, and most external email IDs, from the departmental email address book. We are investigating the most effective method for preventing the inappropriate use of the remaining external email IDs needed to conduct normal FTB business.
  • Providing expanded education to our employees, on the appropriate use of email.

We are aggressively investigating long-term solutions to prevent the intentional, or unintentional release of confidential information via email in the future.

Ongoing efforts

FTB's information system has layers of security to monitor and protect taxpayer data. All FTB employees receive mandatory annual training in how to prevent disclosure, and maintain taxpayer confidentiality. As part of this training, employees are informed that they can lose their jobs if they intentionally view taxpayer data they are not authorized to see.