Tax board searching for non-filers

SACRAMENTO - The state's Franchise Tax Board has begun to contact more than 900,000 people who did not file a 2009 state income tax return.The tax board finds non-filers by using income records it receives each year from third parties such as the IRS, banks, employers, state departments and other sources. They also use occupational licenses and mortgage interest payment information to detect others who may be required to file a state tax return. Last year, the tax board collected more than $550 million by contacting people who did not file a tax return. People contacted by the tax board have 30 days to file a tax return or show why one is not due. When a required return is not filed, the tax board issues a tax assessment using income records to estimate the amount of state taxes owed. The assessment includes interest, fees and penalties of up to 50 percent.

********** Published: January 13, 2011 - Volume 9 - Issue 39