517 Local Firms Owe Back Taxes, State Says
A new program to identify businesses that owe the state back taxes reports that 517 Ventura County corporations did not file 1993 state income tax returns.
Together, the companies owe about $4.5 million in taxes and about $2.7 million in penalties, according to the California Franchise Tax Board.
Statewide, more than 27,000 corporations have failed to file. The board estimates they owe about $600 million in taxes.
The new annual program compares millions of records from federal, state and local government agencies, said Denise Quade, spokeswoman for the board. In the past, many of the records had to be compared by hand, she said, which made such programs too time-consuming to run every year. Now, most of the work is computerized, allowing the board to check more records faster.
The offending corporations already have received two notices from the board telling them to file their 1993 California corporate tax returns. Penalties can equal 50% of their tax liability, plus interest.
If the corporations don’t file within 60 days of the latest notice, they could face tax liens and criminal prosecution.
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