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How the top 500 delinquent taxpayers list can affect your license

On Behalf of | Aug 5, 2020 | Professional License Defense |

The old saying is true: the only two certainties in life are death and taxes. However, thousands of people every year fail to pay their taxes. Sometimes, this is simply human error. In other cases, it is due to willful tax evasion.

To hold taxpayers accountable, California’s Franchise Tax Board (FTB) publishes a list of the state’s top 500 delinquent taxpayers. If someone who holds a professional license makes this list, then they face the denial or suspension of their license.

What to know about the list

Several years ago, the state of California enacted legislation to close the tax gap—that is, the gap between unpaid and paid taxes in the state. One such law mandates the FTB to keep a list of the 500 taxpayers who had the highest tax debts. The FTB publishes the delinquent taxpayer’s name, address, the amount of taxes they owe and any professional licenses they hold.

Placement on the list can have serious consequences for those who hold a professional license. Several state licensing boards must deny the applications of suspend the licenses of professionals named to the list.

How to get off the list

It is always wise to take proactive measures to avoid making the top 500 delinquent taxpayers list. The simplest method is to pay state and federal taxes on time every year. However, even this runs the risk of errors that could result in tax debt.

Anyone named to the list must take swift action to get off it. One of the best ways is to work with a licensing attorney who understands the measures to take to remedy the situation. An attorney can work with the board that holds the client’s professional license, work with the FTB to schedule a repayment plan and eventually help the taxpayer remove their name from the list.

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