CA: State's Tax Informants Might Get a Piece of the Infraction (10% Snitchers fee)

Los Angeles Times ^ | April 24, 2005 | Evan Halper

[calcowgirl]

SACRAMENTO — Got a neighbor bragging about using the Nevada address of his weekend ski condo to avoid paying California taxes?

State tax authorities want you to rat him out. And soon they may be able to make it worth your while.

The Franchise Tax Board, California's version of the IRS, is proposing to offer snitches cash rewards for stepping forward. Under the plan, which is part of Gov. Arnold Schwarzenegger's proposed budget, tax officials would give confidential informants as much as 10% of the unpaid taxes collected from their neighbors, bosses, spouses or any other scofflaws they report.

It is part of the state's continuing effort to get at the roughly $6.5 billion in taxes that authorities say is owed each year but not paid.

"We have tax cheats who are taking money out of the pockets of people who are paying their fair share," said state Controller Steve Westly, California's top elected tax official. "This program for whistle-blowers is one way we can get the money that is owed…. It won't collect billions. But I think we will have the chance to collect millions."

Privacy advocates say the plan is more than a little creepy.

"The government shouldn't be paying people to snoop into the tax filings of other people," said Teresa Casazza of the California Taxpayers Assn., a business advocacy group. "Based on a hunch that you are going to make some money, you might look through someone's garbage, monitor conversations or maybe try to blackmail them."

(snip)

The tax board is hoping by the end of the summer to have legislative approval for giving out rewards... The Franchise Tax Board and the governor want the plan, which has significant bipartisan support, approved as part of the state budget, which is due July 1.

[freepatriot32]

Libertarian ping.To be added or removed from my ping list freepmail me or post a message here.

[freepatriot32]

[Pro-Bush]

This is what the Nazi's used to do.

[glorgau]

Amazing, I had no income in the State of California during the year 2003 and they stil sent me a couple of demands for somewhere over $1,000 in state taxes. It was pure guesswork on their part. No, I don't owe them anything.

[Southack]

Rough policy, but hey, now every Democratic political activist who gets kicked off of a campaign will be able to make some easy $$ by reporting how much of the "campaign contributions" were being used by the politician for his/her personal expenses.

[sheik yerbouty]

Dial 1-800-IAMARAT!

[clee1]

Big Nose and Big Ears... coming to a socialist utopia near you.

[television is just wrong]

Lol, and what about all those people driving around with out of state plates evading the expensive California registration and smog checks.

They've got to be kidding, this is like calling the police on your neighbor. I don't think I could bring myself to do that at least to most people. However, there are a few jerks I'd like to get even with.

[norwaypinesavage]

I have lived in Michigan for forty years. I have never lived in California. The year we were married, my wife worked for 2 months in California. California decided that therefore I owed income tax to the state of California. They assessed me 100% of my Michigan salary times the California tax rate, less my Michigan taxes. Needless to say, I did not file the California tax return. If anyone would like to snitch on me, please freepmail me for my name and address (ha-ha). The point is: one person's snitch is another person's legitimate reaction to a state's overreach.