Question Description
The following is taken from the California Franchise Tax Board (FTB)website. The FTB publishes a list of the top 500 taxpayers who owe taxesover $100,000. They might also suspend professional, occupational, anddriver’s licenses. Do you think this is a good way to encouragetaxpayers to pay their taxes? What do you think about suspending thesetypes of licenses for owing taxes?
Please reply to at least one of the posts by anotherstudent. Replies are part of the points awarded for the discussionassignments.
Top 500 past due balances
About the delinquent taxpayer list
One of our main responsibilities is to collect state income tax andcorporate franchise tax. Sometimes, people don’t pay their taxes. Thosewho don’t pay their state income taxes contribute to California’s taxgap — the difference between taxes owed and taxes paid.
The law
FTB is topublish a list of the 500 largest tax delinquencies in excess of$100,000 twice a year and update the list when names are removed. Thelist is replaced when updated. Updates are ongoing, with major updatesoccurring twice a year.
The intent of this list is to encourage those who are on the list (or may be placed on the list) to pay their taxes.
We mail the taxpayer a letter at least 30 days before placing thetaxpayer on the list (Notice of Tax Delinquencies – FTB 4192). Thisletter gives the taxpayer at least 30 days to avoid being placed on thislist.
We publish the:
- Taxpayer’s name and address
- Amount owed
- Taxpayer’s occupational and professional licenses
For limited liability companies and corporations, we also publish the names and titles of the principal officers.
Consequences of being on the list
If a taxpayer is placed on the list and does not take steps to be removed from the list:
- Some of the taxpayer’s professional or occupational license may be suspended
- The taxpayer’s driver license may be suspended
- State agencies will not enter into contracts with the taxpayer to acquire goods or services
- The taxpayer’s name, address and tax debt will be publicly available
