More than one million people earned money in 2013 but did not file a California State Income Tax Return and they will be hearing from the Franchise Tax Board (FTB).
Each year the FTB receives over 500 million income records from banks, employers, the state government, the IRS, and other third parties. The FTB checks these records against the tax return database and contacts anyone who failed to file a return. Those receiving correspondence from the FTB will have 30 days to file a California state tax return or show why one is not required. If a non-filer does not respond, the FTB will estimate the tax due, as well as interest, fees, and penalties which can be as much as 50% of the tax due.
Last year, the FTB collected over $715 million with its effort to contact non-filers. For more information, please click here to see the FTB press release.
