Business & Real Estate
- Published on Wednesday, 29 January 2014 00:01
- Written by Los Altos Town Crier Staff - Town Crier Report
More than 1 million residents who did not file a 2012 state income tax return will soon receive letters seeking those returns or verifying that they do not have a tax-filing requirement, according to the California Franchise Tax Board.
The tax board annually contacts people who had California income but did not file a tax return. Last year, the board collected more than $727 million through such efforts.
The extended deadline to file a 2012 state tax return was Oct. 15, 2013. California taxpayers filed more than 16 million tax returns last year.
The Franchise Tax Board receives more than 400 million income records each year from third parties such as banks, employers, state departments, the IRS and other sources. The board matches the income records against its records of tax returns filed. While the program mainly identifies wage earners and self-employed individuals who have not filed, it also detects other nonfilers through information 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 due. For those who do not respond, the board issues a tax assessment using income records to estimate the amount of state tax due. The assessment includes interest, fees and penalties that can total up to 50 percent of the tax.
Those who receive a letter can visit ftb.ca.gov for next steps in the process. Taxpayers can search “Respond to request/demand for tax return.” Using the online service, individuals can request more time to reply, retrieve information that can assist in filing a tax return, request tax forms, learn about payment options, sign up to receive an email reminder to file and access other services.
For assistance with the process and more information, call (866) 204-7902.