Failure to Pay Taxes: Potential License Denial or Suspension

Effective July 1, 2012, the Board is required to deny an application for licensure and to suspend the license of any candidate or licensee who has outstanding tax obligations due to the Franchise Tax Board (FTB) or the State Board of Equalization (BoE) and appears on either the FTB or BoE’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 a candidate or a licensee is on a certified list, the candidate 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 Board receives a release from the FTB or BoE. The form for requesting a release will be included with the preliminary notice of suspension.

The law prohibits the Board 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.

Candidates and licensees can check if they are currently on the FTB’s certified list or the BoE’s certified list. If a candidate or licensee believes they are on either list in error, they should call the FTB at (888) 426-8555 .