California IN BRIEF : LOS ANGELES : Tax Amnesty for Businesses to Expire
Scofflaw businesses have until Tuesday to pay their back taxes to the city of Los Angeles in order to avoid a 40% penalty and potential criminal prosecution, city officials say.
The city expects to collect at least $7 million under its special tax amnesty program, which is patterned after a 1985 program and allows businesses to admit their failure to register with the city or pay the required fees without incurring further penalties.
Altogether, officials estimate that there is more than $12 million in accounts receivable from businesses that are already registered, and an additional $10 million to $25 million in taxes owed by companies that are operating underground.
The City Clerk’s office has recently stepped up its effort to ferret out unregistered businesses and those behind in their payments by increasing its staff and hiring a private investigative firm. In addition, a cross-check of state and city records found about 80,000 businesses operating in Los Angeles that are not registered in the city; those companies will receive warning notices within the next few days encouraging them to sign up and pay.
“They better take advantage of this amnesty program,” City Controller Rick Tuttle said. “”They should get to us before we get to [them].”
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