Tax board seeks returns from 750,000 non-filers

SACRAMENTO — The Franchise Tax Board (FTB) announced February 4 that it will contact more than 750,000 California taxpayers who earned California income but failed to file state income tax returns last year.

“Last year, California taxpayers voluntarily filed more than 15 million tax returns and paid nearly $28 billion in state income taxes. Honest taxpayers do their part to ensure that necessary dollars go toward critical services such as education and public safety. They should not have to foot the bill for those who unfairly avoid filing tax returns,” said State Controller and FTB Chair John Chiang.

The FTB receives more than 350 million income records annually from third parties such as the IRS, banks, employers, state departments and other sources. In addition to wage earners and self-employed people who have not filed, the FTB’s filing enforcement program also detects other non-filers through occupational licenses and mortgage interest payments.

The FTB matches this information against the records of tax returns filed. If there is not a return on file, FTB will notify non-filers that they have 30 days to file their return or show why a tax return is not due.

If a return is required but not received, the FTB will issue a tax assessment based on the state’s estimate of tax due with added penalties and fees that can add up to 50 percent of the taxes owed.

The FTB has information for those who receive notices on its Web site. Go to http://www.ftb.ca.gov and select the Bills and Notices tab, then the Request/Demand for Tax Return, Get more information link.

Call the FTB at (866) 204-7902 for more information.