California AB 466 was enacted on July 16, 2021, and becomes effective on January 1, 2022. The bill allows the Franchise Tax Board (FTB) to share information from business entities’ tax filings, on an annual basis, with the State Controller’s Office (SCO), specifically:
♦The taxpayer's entity status and the date FTB last updated the status.
♦ The taxpayer’s revenue range.
♦ Whether the entity previously filed an unclaimed property report with the Controller, and if applicable, both of the following:
• The filing date of the taxpayer’s last report.
• The amount remitted on the taxpayer’s last report.
According to the FTB’s Bill Analysis dated June 24, 2021, the FTB already provides the SCO with a list of business entity taxpayers that are incorporated or began conducting business in the last three years and have filed a tax return. With the passage of AB 466, the FTB will be permitted to share business entities’ responses to these questions with the SCO, who can use the information to identify and provide outreach, in the form of education and/or audits, to companies that the SCO believes is not in compliance with the unclaimed property law.