While most Californians are starting to file their state income tax returns for 2012, a few may still have to get their 2011 affairs in order. According to a January press release from the Franchise Tax Board (FTB), the agency has begun the process of reaching out to any state residents who failed to submit the necessary paperwork by October 15 of last year – the final deadline for 2011 returns.
“FTB receives income information from the IRS, banks, employers, state departments and other sources,” the press release states. “FTB also uses occupational licenses and mortgage interest payment information to detect others who may also have a requirement to file a state tax return.”
The agency then reportedly sifts through all of the tax returns filed from the previous year to determine those who may still have a financial obligation to the state.
So, how much is there to be gained through this process? According to the release, the FTB was able to acquire $ 714 million in unpaid taxes via this outreach last year. And, while it’s true that the FTB is already likely to be facing ample processing challenges due to the tax adjustments applied to 2012 returns – particularly Proposition 30, which increases income tax rates for wealthier Californians – that figure definitely makes this time-consuming procedure worthwhile.
If you are contacted by the FTB regarding an outstanding tax return for 2011, you will be required to file a 2011 return within a month. After that point, the agency will calculate your financial obligations using available data regarding your earnings – which may mean you do not benefit from specific tax credits you could be entitled to. For assistance with your 2011 or 2012 tax return, or any other issue involving the FTB or IRS, Moskowitz, LLP for more information.>contact the tax attorneys at Moskowitz LLP in San Francisco.