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The top 500 delinquent taxpayers in California

Posted: 5:09 PM, Apr 07, 2016
Updated: 2016-04-08 00:09:04Z
SAN DIEGO -- Collectively, they owe the state of California more than $266 million in income tax.
 
The 'they' in that sentence are the 'Top 500 Delinquent Taxpayers,' as identified by the State of California Franchise Tax Board. 
 
The list comes out every April and October and since its inception in 2007, the tax board has been able to use the program to recoup more than $507 million from delinquent taxpayers.
 
This time around we have four locals who made the list:
  • A San Diego resident who owes $1,554,427.62
  • A Deml Mar resident who owes $1,368,416.22
  • A Rancho Santa Fe resident who owes $798,771.02
  • An El Cajon resident who owes $300,805.00
And the top offender in the state? A man in Beverly Hills who owes a whopping $12,414.480.49.
More information from the State of California Franchise Tax Board:
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 $266 million in income tax.
 
In February, FTB sent letters to taxpayers scheduled to appear on the list. 101 made arrangements to pay. Another 316 individuals and 83 businesses did not, resulting in their inclusion on the list.
 
The Top 500 list is published in April and in October. Since the list’s inception in October 2007, FTB has collected more than $507 million from delinquent taxpayers through the program.
 
Delinquent taxpayers on the list face an array of consequences:
 
If they hold a professional or occupational license, that information is noted on the list and the license may be suspended until the tax bill is resolved.
 
The state may suspend the delinquent taxpayer’s driver’s license until the tax bill is resolved.
State agencies are prohibited from entering into contracts for the acquisition of goods or services with listed taxpayers.
 
FTB publishes the names and titles of principal corporate officers of corporations on the list.
FTB removes a taxpayer from the list once the debt is paid or the taxpayer agrees to make payments under an approved agreement or compromise. Debtors who have filed for bankruptcy protection are not included on the list.
 
Individual taxpayers on the list can call 888.426.8555 to resolve their accounts. Business taxpayers can call 888.426.8751.
 
FTB’s compliance efforts extend to more than the Top 500 delinquents. FTB is currently contacting nearly 1 million individuals who have earned California source income, but have not filed a tax return claiming that income.
 
Each year, FTB receives more than 500 million income records from banks, employers, state government, the IRS, and other third parties. FTB matches these income records against its database of tax returns. The program detects others who earned income but did not file a return through sources such as occupational licenses and mortgage interest payments.
 
Those contacted have 30 days to file a state tax return or show why one is not required. For those who do not respond, FTB estimates a tax bill based on income records. The assessment includes interest, fees, and penalties that can total as much as 50 percent of the tax due.