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Dionne Warwick, Steven Seagal Among Top California Tax Delinquents

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Sacramento, Calif. (October 21, 2012)

By Jeff Stimpson

Singer Dionne Warwick and movie star Steven Seagal are among the headliners on a list of the top individual and corporate tax delinquents released by the California Franchise Tax Board.

Warwick (giving a residence in South Orange, N.J.) owes nearly $2.6 million in back taxes, Seagal (Los Angeles) $347.849.67. Warwick had previously appeared on similar lists in California.

Heading the individuals’ list are CNET founder Halsey Minor of San Ramon ($10.7 million owed), Daniel and Luisa Furlan of San Diego (almost $7.5 million), and Scott McNiel of Manhattan Beach (almost $6.5 million).

Topping the corporate list are a Walnut Creek physician’s corporation listed as Baldomero De Leon Jr. MD Inc. (more than $4.1 million owed), Hocopar Inc. of Saratoga, Calif. (almost $2.3 million), and Caresystems Inc. of Vacaville (almost $2 million).

Individuals owe California a total of more than $191.1 million in back taxes, while corporations a total of almost $29.6 million. The state’s annual tax gap is estimated to be $10 billion.

Assembly Bill 1424 changed the Golden State’s Revenue and Taxation Code Section 19195, which now directs the Franchise Tax Board to publicly disclose at least twice each calendar year a list of the 500 largest state income tax delinquencies. These delinquencies must total in excess of $100,000 and be subject to a recorded notice of state tax lien. The list includes the taxpayer’s name and address, the liened amount owed, the earliest date a notice of state tax lien was recorded, the taxpayer’s occupational or professional licenses with type, status, and license number, and, in the case of a limited liability company or corporation, the names and titles of the principal officers of the taxpayer.

State agencies are now also prohibited from entering into contracts with the Top 500. The FTB has also been authorized to enter into reciprocal agreements with other states to offset refunds and collect tax debt.

Taxpayers on the Top 500 list will be removed once the tax is paid or the taxpayer agrees to resolve their tax debt. Tax liabilities under appeal, in litigation, or in bankruptcy proceedings are not included on the list.

The complete list will be updated again in April on the FTB’s Web site.

1 Comment

Why aren't these taxes being collected? Is all of their assets fully hidden? Are they not presently making any income? Strange! And when does it become a felony?

Posted by: tego@verizon.net | October 22, 2012 2:36 PM

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