The FTB’s investment in new IT systems is starting to pay off for the California tax agency. The FTB increases audit and collections capabilities thanks to the integration of several IT platforms that allow the agency to collect more information “upstream” that inform FTB agency actions after returns are submitted. The California FTB processes 17 million business and personal tax returns each year. This year, the FTB ran 11 million returns through the new system and initial results show an increase of $2.8 Billion in taxes collected.
One component of the new system allows for better management and matching analysis, combining multiple sources of data under each taxpayer’s ID. This provides advantages to both the FTB and to California’s general public and business users. The new “MyFTB” system places all information about you as a single taxpayer in one interface. Information that may have been strewn across multiple platforms is organized in a single portal. “It’s not our data, it’s the taxpayer’s data. If they owe us money we want to show them what payments we have processed and how much they owe us currently,” said Cathy Cleek, the CIO for California FTB.
In addition to the new IT systems, the FTB has also put 350 new tax rules into practice. These changes helped the FTB to bring in more revenue from California taxpayers as the rules changes helped the system to find errors in people’s filings they hadn’t found in prior years. The agency was also able to collect more address information from other government agencies, allowing FTB to send bills to people it hasn’t been able to pursue for collections in the past.
The new system further provides bank data related to Social Security numbers FTB would provide. This allows the FTB to request and implement bank levies on previously unknown bank accounts and for the money to be sent to FTB.
California taxpayers will experience ramped up pressure based upon these new systems as the FTB increases audit and collections capabilities in search of additional revenues. Allen Barron’s tax team is uniquely positioned to help California taxpayers with FTB audits and collections issues. If you have been contacted by the California FTB for an audit, bank levy or garnishment we invite you to contact us for a free consultation at 866-631-3470.