Law Offices of Connie Yi, PC
California
Estate Planning
& Tax Law
Toll Free: 888-312-6978
Website Navigation Menu

Tax board prods California businesses to file 2011 returns

If you own a business in California, you know how much work it can be. You are in charge of everything from maintaining the premises, to payroll, to filing the taxes. While every detail that goes into running a business is important, making sure you are compliant when it comes to your taxes is especially crucial. If you are not, the state or the IRS will come after you.

Every year, 5 million businesses and other entities in California have their income records scoured by the state's Franchise Tax Board. They are looking for any business that failed to file an income tax return or is noncompliant in some other way. According to the FTC, 90,000 businesses in our state did not file state income tax returns for 2011. Why there are so many is not clear, but not all businesses are required to file the tax return.

The Franchise Tax Board has given each of the 90,000 businesses that didn't file a return in 2011 30 days to respond. Businesses must either explain why they are not required to file a state income tax return or file one. 

When mishaps occur and business do not file tax returns, it adds to the state's tax gap -- the amount of unpaid taxes. As anyone could see, it benefits the state to seek out the unpaid taxes. However, not everyone intentionally avoids paying state income taxes. Taxes are complicated, and it is not always clear who is required to file. If you find yourself on a list of businesses that have been noncompliant, it may be helpful to work with an attorney who can explain the process and ensure that you don't incur any penalties. 

Source: Daily News, "California contacting businesses to file tax returns," July 25, 2013

Contact Us Now to begin your initial consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

FindLaw Network

Office Locations

Law Offices of Connie Yi, PC
490 Post Street, Suite 508
San Francisco, CA 94102
Phone: 415-433-3350
Toll Free: 888-312-6978
Map and Directions

Additional Office Locations:
Pleasanton
323 Ray Street
Pleasanton, CA 94566
Phone: 925-484-0888 
Pleasanton Law Office Map

San Mateo
1900 S. Norfolk Street, Suite 350
San Mateo, CA 94403
Phone: 415-433-3350
Map and Directions

Sunnyvale
1250 Oakmead Pkwy, Suite 210 
Sunnyvale, CA 94085 
Phone: 888-312-6978 
Map and Directions