“Something New: The California Franchise Tax Board has implemented a new tax collection tool. It is their FIRM program (Financial Institution Records Match). The FIRM program is a means by which the FTB will exchange information with financial institutions, i.e., banks, to see if they have an account for a delinquent taxpayer. The FTB will presumably then use that information to seize the money in that financial institution belonging to the delinquent taxpayer. The FIRM program will work in one of two ways. Either the financial institution on a periodic basis will have to submit a complete list of all its accounts to the FTB so the FTB can review the list of names and match it against its delinquent taxpayer database, or the financial institution will have to review its records against the list of delinquent taxpayers received from the FTB and notify the FTB if the financial institution has any accounts in the name of a delinquent taxpayer. It would appear the easier burden on a financial institution would be to provide the list of all its accounts and let the FTB search the records. Employment Development Department (EDD) or State Board of Equalization (SBE) can refer amounts owing to them to the FTB for collection to come under this program as soon as 2013. If you are delinquent with the FTB, EDD, or SBE on your back taxes it may now be time to get on a payment plan with them to repay the amounts owing before your bank account is seized. Similar programs are already in place in Indiana, Kentucky, Maine, Maryland, Massachusetts, Minnesota, New York, New Jersey, and North Carolina. It is unclear whether or not the FTB can or will share this information with the IRS. It will be interesting to see how successful this program will be. Contact Jason W. Harrel of Calone and Harrel Law Group, LLP to discuss your options if this might apply to you.”
