Since July 1, 2012, nearly all licensed professionals in the State of California have been subject to losing their licenses to practice their professions (as well as their drivers licenses) if they are included in California’s list of the top 500 largest tax delinquents.
Assembly Bill 1424, the Delinquent Taxpayer Accountability Act, is aimed at the state’s biggest tax debtors. This expansion of power given to the California Franchise Tax Board (FTB) and the Board of Equalization (BOE) allows them place delinquent taxpayers on either of their certified lists of the top 500 tax delinquents owing over $100,000. In addition to yanking drivers’ licenses and professional licenses, such as the license to practice medicine, the bill also gives California officials permission to work with other states and the IRS to find debtors who have shifted their money into out-of-state bank accounts.
Any licensee who is on the California top debtors list will face denial or suspension of their professional license when they reapply for them. 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 BOE. Any such person who fails to come into compliance will have his/her license denied or suspended until the licensing board, commission, department or other agency, receives a release from the FTB or BOE.
There is always the potential that the California legislature could expand the scope of the Delinquent Taxpayer Accountability Act to include debtors below the $100k limit. Don’t risk losing your license and endangering your livelihood. Pay any outstanding balances on your state taxes immediately.
If you have been denied your California professional license by a licensing authority or had your license suspended, you should contact the Law Offices of Lucy McAllister immediately. We can work with you to reapply for your license and successfully obtain the documentation you need to reinstate your professional credentials so that you can continue to practice your profession.
For additional information or to schedule a consultation on a professional licensing issue, please contact our law offices today at (877) 280-9944.