The Franchise Tax Board (FTB) is having a public hearing regarding its Financial Institution Records Match (FIRM), one of its most important tools in the collection of delinquent tax liabilities. The hearing is scheduled for 1:00 p.m., on Wednesday, March 27, 2013, at the Franchise Tax Board, 9646 Butterfield Way, Town Center, Valley Quail Room, Sacramento, California. The hearing will allow interested parties to weigh in on the FTB's administration of FIRM, an enforcement tool used to collect delinquent taxes and non-tax debts of individuals and business entities.
Each year there is a substantial issue to be addressed for those businesses that owe taxes to state and federal agencies. Although companies are usually given notice of their tax debt obligations, there are some who simply cannot afford to pay these taxes at the end of the year. In California, the State Tax Board has made a list of the top 500 businesses that owe the most taxes. However, many questions have been raised about the effectiveness of this collection effort.
To say that audits are slightly stressful for California business owners may be the understatement of the year. For many people in Sacramento County, audits can be one of those most intimidating parts about running a business. Even savvy business owners get nervous when the IRS comes knocking and demands to find out the company's financial inner workings.
The failure to pay taxes could land one in hot water not only with the IRS but also with state and local authorities. The state of California even went so far as to publish a list of individuals and companies who apparently owe the most unpaid taxes since 2007. Government officials say they have collected more than $100 million since they started making the list public.