California Going After Tax-Evaders
We have discussed the federal government’s efforts to track down tax-evaders many times before, but the IRS isn’t the only tax agency looking to crack down on those who don’t pay their fair share of taxes. The California Franchise Tax Board is in the middle of a five-and-a-half-year effort to automatically find and identify noncompliant taxpayers. Judging by the returns so far, their plan is working.
According to reports, the modernization of the Board’s IT system is finding a lot of tax money owed to the state of California much quicker that expected. Since July 2011, when the project began, the system has already identified and collected $1 billion in tax revenue owed to the state.
Overall, the project, which is called the Enterprise Data to revenue Project (EDR), is expected to garner an additional $4.7 billion in tax revenue for the state through 2015. The gains don’t stop there, however. The new system is also expected to earn California an additional $1 billion in extra tax revenue every year after that.
According to an EDR spokesperson the majority of the money already collected comes from those whom the state considers to be noncompliant taxpayers, which consist of both individuals and businesses. With the tax gap in California estimated to be about $10 billion between what people owe and what they actually pay the early returns from the new system might just be the tip of the iceberg.
If you’re worried that the state considers you noncompliant then you should contact GROCO today for help with your tax planning and tax returns. Click here to contact us or call us at 1-877-CPA-2006.
We hope you found this article about “California Going After Tax-Evaders” helpful.
If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
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