State Contacting Income Earners Who Did Not File Tax Returns

SACRAMENTO, CA – While most people are working on their 2010 state tax returns, the Franchise Tax Board (FTB) today announced that it is contacting more than 900,000 people who did not file a 2009 state income tax return.

FTB finds nonfilers by using more than 400 million income records it receives each year from third parties such as the IRS, banks, employers, state departments, and other sources. In addition, FTB uses occupational licenses and mortgage interest payment information to detect others who may also have a requirement to file a state tax return. FTB then contacts those who earned California income, but did not file a return for the 2009 filing year.

Last year, FTB collected more than $550 million through these efforts.

Since the 1950s, FTB has contacted people who may have a filing requirement, but have not filed a tax return. Individuals contacted have 30 days to file their state tax return or show why one is not due. When a required return is not filed, FTB issues a tax assessment using income records to estimate the amount of state tax due. The assessment includes interest, fees, and penalties of up to 50 percent.

FTB provides more information for those receiving notices at ftb.ca.gov. From the home page, select the Bills and Notices tab, and then under the Tax Debt Section, select: Respond to request or demand for tax return. Taxpayerscan request more time to respond, retrieve information that can assist them in filing a tax return, request tax forms, learn about payment options, sign up to receive an email reminder to file, and access other services. Individuals can also call FTB at 866.204.7902 to get information.