Potential License Denial or Suspension for Failure to Pay Taxes
Effective July 1, 2012, the Department of Real Estate (DRE) is required to deny an application for licensure and to suspend the license of any applicant or licensee who has outstanding tax obligations due to the Franchise Tax Board (FTB) or the CA Department of Tax and Fee Administration(CDTFA) and appears on either the FTB or CDTFA'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 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 CDTFA. Any such person who fails to come into compliance will have his/her license denied or suspended until DRE receives a release from the FTB or CDTFA. The form for requesting a release will be included with the preliminary notice of suspension.
The law prohibits the DRE 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.
You may view the FTB and CDTFA certified lists using the following links:
- Top 500 Delinquent Taxpayers (Corporate)
- Top 500 Delinquent Taxpayers (Personal)
- Top 500 Sales & Use Tax Delinquencies in California
If you believe you are on either list in error, please call the FTB at (866) 418-3702 or the CDTFA at 916-323-8624.