You might be getting a call soon from the state Franchise Tax Board if you didn’t file a state income tax return for 2011.
The board is contacting more than one million Californians who didn’t meet the Oct. 15, 2012 deadline. It’s comparing records of filed tax returns with more than 400 million income records it receives each year from third parties to find those who earned California income but didn’t file a return. The FTB gets income information from the IRS, banks, employers, state departments, and other sources, and also uses occupational licenses and mortgage interest payment information to detect others who may also have a requirement to file a state tax return.
Around here, the FTB is looking up 27,751 people in Alameda County; 19,466 in Contra Costa County; 10,855 in San Mateo County; 25,435 in Santa Clara County, and 3,876 in Santa Cruz County. Last year, FTB collected more than $714 million statewide through these efforts.
Those contacted have 30 days to file a state tax return or show why one is not due. When a required return is not filed, FTB issues a tax assessment using income records to estimate the amount of state tax due; that assessment includes interest, fees, and penalties that can total up to 50 percent.