California Tar and Feathers Top Delinquent Taxpayers

California has adopted the old school method of tarring and feathering delinquent taxpayers to bring public humiliation and shame to certain businesses and individuals who cannot afford to pay the taxes they owe.  In doing so, the California Franchise Tax Board (FTB) has recently mailed Notice of Public Disclosure of Tax Delinquency letters to the top delinquent personal income and business entity taxpayers who owe over $100,000 where the amount due is subject to a recorded notice of state tax lien.

 

These lovely little letters give those taxpayers notice that the FTB intends to publicly disclose their names, addresses, and amounts due on its public website during the week of October 12, 2015. The list will also include occupational or professional license information, including license number and status, and the names of principal officers and their titles.  Businesses and individuals appearing on the list are subject to having their occupational, professional, and driver’s licenses suspended by the issuing agencies. In addition, California state agencies are prohibited from entering into contracts with taxpayers on the list for the acquisition of goods or services.

 

So what steps should one take if you appear on the list?  Taxpayers who receive a Notice of Public Disclosure of Tax Delinquency letter may contact the FTB at (888) 426-8555 for personal income tax or (888) 426-8751 for business entity taxes, or they may contact a tax professional who can assist in removing you from the list and resolving the tax issue.  

 

Although this type of public tar and feathering has the potential to destroy reputations and businesses, California believes this form of public shaming is worth it because the theory is that it will increase the chances of getting the taxes paid.   At the Federal level, its against the law for the IRS to disclose personal tax information to any third party unless its necessary and particular to an actual ongoing investigation or audit.  This is the complete opposite for the FTB. In fact, the FTB publishes and updates this public shaming list biannually.

 

Now a bit curious if you or someone you know might be on the list?  The list of the top 500 delinquent taxpayers was updated on August 19, 2015, and can be viewed on the FTB’s website at https://www.ftb.ca.gov/aboutFTB/Delinquent_Taxpayers.shtml#CORP.

 

If you need assistance concerning taxes involving the State or the IRS, do not hesitate to contact a tax lawyer in Orange County.   The Orange County Tax Attorneys at Wilson Tax Law Group or www.wilsontaxlaw.com have experience in both State IRS and state tax matters. You can reach the Wilson Tax Law Group or info@wilsontaxlaw.com at 949-397-2292.

                                                                               Delinquent California Taxpayer

California Tar and Feathers Top Delinquent Taxpayers

California has adopted the old school method of tarring and feathering delinquent taxpayers to bring public humiliation and shame to certain businesses and individuals who cannot afford to pay the taxes they owe.  In doing so, the California Franchise Tax Board (FTB) has recently mailed Notice of Public Disclosure of Tax Delinquency letters to the top delinquent personal income and business entity taxpayers who owe over $100,000 where the amount due is subject to a recorded notice of state tax lien.

 

These lovely little letters give those taxpayers notice that the FTB intends to publicly disclose their names, addresses, and amounts due on its public website during the week of October 12, 2015. The list will also include occupational or professional license information, including license number and status, and the names of principal officers and their titles.  Businesses and individuals appearing on the list are subject to having their occupational, professional, and driver’s licenses suspended by the issuing agencies. In addition, California state agencies are prohibited from entering into contracts with taxpayers on the list for the acquisition of goods or services.

 

So what steps should one take if you appear on the list?  Taxpayers who receive a Notice of Public Disclosure of Tax Delinquency letter may contact the FTB at (888) 426-8555 for personal income tax or (888) 426-8751 for business entity taxes, or they may contact a tax professional who can assist in removing you from the list and resolving the tax issue.  

 

Although this type of public tar and feathering has the potential to destroy reputations and businesses, California believes this form of public shaming is worth it because the theory is that it will increase the chances of getting the taxes paid.   At the Federal level, its against the law for the IRS to disclose personal tax information to any third party unless its necessary and particular to an actual ongoing investigation or audit.  This is the complete opposite for the FTB. In fact, the FTB publishes and updates this public shaming list biannually.

 

Now a bit curious if you or someone you know might be on the list?  The list of the top 500 delinquent taxpayers was updated on August 19, 2015, and can be viewed on the FTB’s website at https://www.ftb.ca.gov/aboutFTB/Delinquent_Taxpayers.shtml#CORP.

 

If you need assistance concerning taxes involving the State or the IRS, do not hesitate to contact a tax lawyer in Orange County.   The Orange County Tax Attorneys at Wilson Tax Law Group or www.wilsontaxlaw.com have experience in both State IRS and state tax matters. You can reach the Wilson Tax Law Group or info@wilsontaxlaw.com at 949-397-2292.

                                                                               Delinquent California Taxpayer

Wilson Tax Law Group - The Newport Beach Tax Attorney Blog: IRS Committing Tax Evasion Triggers Congressional ...

Wilson Tax Law Group - The Newport Beach Tax Attorney Blog: IRS Committing Tax Evasion Triggers Congressional ...: In a prior post I commented about a report by the Treasury Inspector General for Tax Administration (TIGTA) that reviewed cases of willful...

Wilson Tax Law Group - The Newport Beach Tax Attorney Blog: IRS Committing Tax Evasion Triggers Congressional ...

Wilson Tax Law Group - The Newport Beach Tax Attorney Blog: IRS Committing Tax Evasion Triggers Congressional ...: In a prior post I commented about a report by the Treasury Inspector General for Tax Administration (TIGTA) that reviewed cases of willful...

IRS Committing Tax Evasion Triggers Congressional Inquiry

In a prior post I commented about a report by the Treasury Inspector General for Tax Administration (TIGTA) that reviewed cases of willful violation of tax laws by IRS employees for a 10 year period (FY 2004-2013). The review found 1,580 IRS employees who willfully understated their Federal tax liability or willfully filed their tax return late.  Of these, roughly two thirds of these tax cheats kept their jobs at the IRS (about 14% have now resigned or retired).

Former Senate Finance and current Senate Judiciary Committee Chairman Charles E. Grassley, R-Iowa, is now asking the IRS Commissioner to explain how and why the Service uses discretion to avoid terminating employees for willful violations of tax law.  A copy of his letter to the IRS Commissioner can be found here.

"Willful violation of tax law is a serious offense and the presumption is an employee guilty of the offense shall be terminated," wrote Grassley in letter dated May 19 to IRS Commissioner John Koskinen. Grassley said the Commissioner’s "discretion to mitigate the penalty of termination was intended to be a safety valve, not a tool to be used routinely to frustrate the intent of Congress."

The report found that a major portion of employees who willfully violated tax law remain employed at the IRS and experienced only minor punishments. The IRS gives discretion to the Commissioner on termination in such cases, and Grassley is seeking details on how and when that discretion is used.

The sole recommendation TIGTA made in the report was for the IRS to document its analysis of evidence and basis for its decision on whether or not to mitigate penalties to something less than termination, wrote Grassley. "The IRS doesn’t necessarily offer discretion on severe penalties to average citizens found in violation of tax law," he said. "There might be a double standard for the IRS’ own employees."

The good news is that Congress has initiated an oversight hearing into the matter.  Hopefully there will be some change because this does not sit well.

If you need assistance concerning taxes or an IRS investigation, do not hesitate to contact a tax lawyer in Orange County.   The Orange County Tax Attorneys at Wilson Tax Law Group have experience in federal tax prosecutions and IRS and state tax matters. You can reach the Wilson Tax Law Group at 714-463-4430.

IRS Committing Tax Evasion Triggers Congressional Inquiry

In a prior post I commented about a report by the Treasury Inspector General for Tax Administration (TIGTA) that reviewed cases of willful violation of tax laws by IRS employees for a 10 year period (FY 2004-2013). The review found 1,580 IRS employees who willfully understated their Federal tax liability or willfully filed their tax return late.  Of these, roughly two thirds of these tax cheats kept their jobs at the IRS (about 14% have now resigned or retired).

Former Senate Finance and current Senate Judiciary Committee Chairman Charles E. Grassley, R-Iowa, is now asking the IRS Commissioner to explain how and why the Service uses discretion to avoid terminating employees for willful violations of tax law.  A copy of his letter to the IRS Commissioner can be found here.

"Willful violation of tax law is a serious offense and the presumption is an employee guilty of the offense shall be terminated," wrote Grassley in letter dated May 19 to IRS Commissioner John Koskinen. Grassley said the Commissioner’s "discretion to mitigate the penalty of termination was intended to be a safety valve, not a tool to be used routinely to frustrate the intent of Congress."

The report found that a major portion of employees who willfully violated tax law remain employed at the IRS and experienced only minor punishments. The IRS gives discretion to the Commissioner on termination in such cases, and Grassley is seeking details on how and when that discretion is used.

The sole recommendation TIGTA made in the report was for the IRS to document its analysis of evidence and basis for its decision on whether or not to mitigate penalties to something less than termination, wrote Grassley. "The IRS doesn’t necessarily offer discretion on severe penalties to average citizens found in violation of tax law," he said. "There might be a double standard for the IRS’ own employees."

The good news is that Congress has initiated an oversight hearing into the matter.  Hopefully there will be some change because this does not sit well.

If you need assistance concerning taxes or an IRS investigation, do not hesitate to contact a tax lawyer in Orange County.   The Orange County Tax Attorneys at Wilson Tax Law Group have experience in federal tax prosecutions and IRS and state tax matters. You can reach the Wilson Tax Law Group at 714-463-4430.

Wilson Tax Law Group - The Newport Beach Tax Attorney Blog: IRS Commits Tax Evasion with Immunity

Wilson Tax Law Group - The Newport Beach Tax Attorney Blog: IRS Commits Tax Evasion with Immunity: On May 6th the Treasury Inspector General for Tax Administration  ("TIGTA" or internal government watchdog over the IRS) issued a ...