California Franchise Tax Board (FTB) Contacting Those Who Failed to File 2012 Tax Returns If you have not yet filed your 2012 tax return, you likely will be hearing from the FTB soon. Each year the FTB contacts businesses and individuals who have California income but did not file a tax return. More than 1 million letters are going out requesting either the immediate filing of the missing tax return or providing information to show that there is not a tax filing requirement. Each year the FTB receives more than 400 million income records from third parties such as the IRS, employers, banks and other businesses and governmental entities. If you are contacted, you will have 30 days to act. If you do not act, the FTB will prepare a substitute tax return and issue a tax assessment, using income records to estimate the amount of state tax due. The assessment will include interest, fees, and penalties (can be as much as 50% of the tax owed). Such tax assessments are legal liabilities and the FTB will use a variety of means to attempt to collect the amount owed. It is best to respond to any tax notices received in a timely fashion. If you aren’t able to pay the tax owed, you still always want to file your tax returns (on time if at all possible). Arranging for the payment of taxes can be handled separately and payments generally can be worked out that work for you. If we can help in any way, please let us know.
Posted on: Thu, 23 Jan 2014 18:34:03 +0000
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