Facing a $19 billion budget deficit, the state has sent notices to 40,000 California businesses who have failed to file their tax returns for 2008. It is an effort to begin to close the tax gap between taxes owed and taxes paid. This comes to $6.5 billion dollars, or about one-third of the current deficit. Of course, the businesses that failed to file will not cover the entire sum. Last year, the total amount of money raised from businesses that failed to file was just $38 million.
Once all the notices go out, businesses will have up to 30 days to file a return. Failure to do so will result in interest, fees, and fines against the businesses.
Read More at the Business Journal.