State’s Top 500 Tax Delinquent Taxpayers Owe $394 Million

The Franchise Tax Board (FTB) today published its newest Top 500 Delinquent Taxpayers list, which includes individuals and businesses that collectively owe the state more than $394 million in income tax.

In August, FTB sent letters to taxpayers scheduled to appear on the list. Of these taxpayers, 96 made arrangements to pay their tax debt. Another 296 individuals and 108 businesses did not pay, resulting in their inclusion on the list.

The Top 500 list is published in April and in October. Since the list’s inception in 2007, FTB has collected more than $582 million through the program. Delinquent taxpayers on the list face an array of consequences:

• A professional or occupational license may be suspended until the tax bill is resolved (licenses are noted on the FTB list).
• The driver's license of the taxpayer may be suspended until the tax bill is resolved.
• The taxpayer is prohibited from entering into contracts with state agencies for the acquisition of goods or services.
• The names and titles of principal corporate officers are published on the FTB list.

FTB removes a name from the list once the debt is paid, or once the taxpayer agrees to make payments under an approved agreement or compromise. Tax liabilities for which the persons liable have filed for bankruptcy protection are not included on the FTB list.

Individual taxpayers on the list can call 888.426.8555 to resolve their accounts. Business taxpayers can call 888.426.8751.

The Board of Equalization has a similar list of the state’s top sales and use tax debtors, which is updated quarterly.

FTB administers two of California's major tax programs: Personal Income Tax and the Corporation Tax. FTB also administers other non tax programs and delinquent debt collection functions, including delinquent vehicle registration debt collections on behalf of the Department of Motor Vehicles, and court–ordered debt. Annually, FTB’s tax programs collect more than 70 percent of the state’s general fund. For more information on other taxes and fees in California, visit taxes.ca.gov.

For more information on other taxes and fees in California, visit: taxes.ca.gov