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California FTB updates delinquent taxpayer list

Last month, the Franchise Tax Board published its list of the top 500 delinquent California state taxpayers. This list includes addresses, when tax liens were filed and professional licenses. The total collectively owed is more than $646 million.

This semi-annual update has been lauded for bringing in $845 million since its inception in 2007. Real estate agents, contractors, dentists, attorneys and taxpayers with addresses in other states make the list. In many cases, tax liens have been pending against these taxpayers for years.

Following up after receiving a notice keeps some off the list

The FTB sends out letter via certified mail to taxpayers that they may appear on the list in August. Of those that received a notice, the FTB reports that about one-fifth worked out a plan to pay off the tax debt.

Appearing on the list carries two serious penalties. Your career could be in jeopardy if you hold a professional or occupational license through a state licensing body, such as:

  • Bureau of Real Estate
  • State Bar of California
  • Contractor’s State License Board
  • Board of Medical Quality Assurance
  • Board of Accountancy.

License suspension is authorized until you make arrangement to resolve the tax issues. State agencies check the list and cannot enter acquisition of goods and service contracts with listed taxpayers.

How to get off the list

There are several ways to get off the list. These include:

  • Pay the amount in full
  • Make payments through an approved agreement or compromise
  • File for bankruptcy protection

Running into tax problems with the FTB can occur in numerous ways. Working with a tax attorney is one way to get to the root of the problem and solve it before it gets any worse.

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