FTB REVISES PENALTY POLICY ON NONFILERS.

• Position: Franchise Tax Board California - Brief Article

Starting Jan. 1, 2001, the FTB will no longer impose a 25 percent penalty on first-time nonfilers.

The penalty was the toughest in the country, even more harsh than the IRS', which imposes no penalty for failing to file if a taxpayer owes no tax or is owed a refund. California's penalty was 25 percent of the entire year's state tax bill, not just the amount still owed.

Under the new policy, once the state identifies...