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FTB mails tax assessments to nonfilers

Internet application helps ease burden on those responding to notices

We have mailed more than 450,000 tax assessments to individuals who have not filed a 1999 state income tax return.

"The nonfiler program promotes state tax administration that is conducted fairly and equitably," said State Controller and Chair of the Franchise Tax Board Kathleen Connell.

"Increasing compliance among nonfilers reduces the tax burden for the people who willingly comply with the state's tax requirements."

Using our newly developed Integrated Nonfiler Compliance (INC) system, we sorted through more than 220 million income records received from employers, banks, the Internal Revenue Service, and other sources and matched them against tax returns filed. Those with California income who did not file were sent a letter asking for their past due return.

Many people filed their tax returns upon request; those that did not are now receiving tax assessments.

In conjunction with our e-Government initiative, the INC system now has self-service options, specifically for nonfilers, available on the Internet.

From this single location, nonfilers can request more time to respond, retrieve information that can assist them in filing a tax return, learn about payment options, request tax forms, correct a misreported social security number, and get answers to questions they may have concerning the notices.

If any of your clients receive a tax assessment, advise them to respond immediately. Remind them that they can access our new nonfiler website at www.ftb.ca.gov/inc or use our expanded automated phone service at 866.204.7902.

They can also call 800.852.5711 to speak with one of our customer service representatives.

Ask the Advocate

Continued from page 3

Taxpayers who have already received a qualifying notice, which meets the statutory requirement, within the last 12 months are not likely to receive an annual notice. We will not send annual notices to the following:

. Accounts we have discharged from accountability;
.
Accounts where we have had mail returned to us as undeliverable;
. Accounts involving fully non-liable spouses, and;

.
Accounts that only contain a period(s) other than 1998 and subsequent years.

To contact the Taxpayer Advocate, write us at:

Taxpayer Advocate Bureau
PO Box 157
Rancho Cordova CA
95741-0157

Internet address:
www.ftb.ca.gov/ taxpayer_advocate

Interest Rates

For the period of January 1, 2002, through June 30, 2002, the adjusted interest rate on underpayments and overpayments of California income taxes will be seven percent. Here is a chronicle of the interest rate since January 1991.

Effective Date     Rate

1 Jan. 1991 to 30 June 1991 11%

1 July 1991 to 31 Dec. 1991 10%

1 Jan. 1992 to 30 June 1992 10%

1 July 1992 to 31 Dec. 1992 9%

1 Jan. 1993 to 30 June 1993 8%

1 July 1993 to 31 Dec. 1993 7%

1 Jan. 1994 to 30 June 1994 7%

1 July 1994 to 1 Dec. 1994 7%

1 Jan. 1995 to 30 June 1995 8%

1 July 1995 to 31 Dec. 1995 9%

1 Jan. 1996 to 30 June 1996 9%

Effective Date     Rate

1 July 1996 to 31 Dec. 1996 9%

1 Jan. 1997 to 30 June 1997 9%

1 July 1997 to 31 Dec. 1997 9%

1 Jan. 1998 to 30 June 1998 9%

1 July 1998 to 31 Dec. 1998 9%

1 Jan. 1999 to 30 June 1999 8%

1 July 1999 to 31 Dec. 1999 7%

1 Jan. 2000 to 30 June 2000 8%

1 July 2000 to 31 Dec. 2000 8%

1 Jan. 2001 to 30 June 2001 9%

1 July 2001 to 31 Dec. 2001 9%


November/December 2001

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