Potential License Denial or Suspension for Failure to Pay Taxes

Effective July 1, 2012, the Department of Consumer Affairs and its constituent entities are required to deny an application for licensure and to suspend the license/certificate/registration of any applicant or licensee who has outstanding tax obligations due to the Franchise Tax Board (FTB) or the California Department of Tax Fee Administration (CDTFA) and appears on either the FTB or CDTFA's certified lists of top 500 tax delinquencies over $100,000. (AB 1424, Perea, Chapter 455, Statutes of 2011).

Once it has been determined that an applicant or a licensee is on a certified list, the applicant or licensee has 90 days from the issuance of a preliminary notice of suspension to either satisfy all outstanding tax obligations or enter into a payment installment program with the FTB or CDTFA. Any such person who fails to come into compliance will have his/her license denied or suspended until the Board, Bureau, Commission or Committee they have applied to receives a release from the FTB or CDTFA. The form for requesting a release will be included with the preliminary notice of suspension.

The law prohibits any of DCA's Boards, Bureaus, Commission or Committees from refunding any money paid for the issuance or renewal of a license where the license is denied or suspended as required by AB 1424.

The FTB and CDTFA are currently expanding the certified lists from 250 to 500, but you can check if you are currently on the FTB's certified list at: https://www.ftb.ca.gov/about-ftb/newsroom/top-500-past-due-balances/index.html or the CDTFA 's certified list at: https://www.cdtfa.ca.gov/taxes-and-fees/top500.htm.

Their phone numbers are FTB @888-426-8555 and CDTFA @ 916-309-5265.