FTB holds Tax Gap Symposiums to study taxpayer amnesty program

California CPA, August, 2004

The FTB held Tax Gap Symposiums June 29 in Sacramento and July 1 in Orange County to study possible solutions to the tax gap, including the proposal of a general amnesty program for taxpayers.

The Tax Gap Symposiums were presided over by FTB Executive Director Gerald Goldberg, Director of Investigations James Yates, Chief of the Filing Division Cathy Cleek and Director of Legislative Services J. Brian Putler.

Nongovernmental representatives at the symposiums included Lonnie Gary and Vicki Mulak of the California Society of Enrolled Agents; Lynn Freer, president of Spidell Publications; and Leonard Williams.

Based on the success of the FTB's Voluntary Compliance Initiative, the FTB is planning to institute an amnesty period in February and March 2005. The FTB also said it may target preparers who aid in noncompliance and increase the number of preparer audits to help close the tax gap.

Symposium participants pointed out that, with its close proximity to tax season, the amnesty period's timing is difficult. But the FTB said that taxpayers might be able to file an amnesty declaration during the period, and the returns in question would not have to be filed until after filing season. The FTB cautioned, however, that the Legislature has final authority on the matter.