35,000 firms are targeted by state tax board COLLECTION: Yearly effort aimed at business owners who fail to file.

Byline: Gregory J. Wilcox, Staff Writer

The California Franchise Tax Board began sending notices Monday to more than 35,000 companies that failed to file a 2007 tax return and still owe $13 billion.

A statement from the tax board said notices will be sent to 210 businesses in Woodland Hills and 209 in Sherman Oaks that have outstanding balances of $100 million and $41 million, respectively.

In San Fernando, 22 businesses are getting notices with a balance due of more than $5 million.

The business owners will have 30 days after receipt of the notice to resolve the matter.

If no action is taken, the board will issue an assessment that may include penalties and fees.

Each year the board reviews more than 5 million income records from government agencies, like the Internal Revenue Service and financial institutions, and matches them against tax records previously filed.

Those that did not file for the year under review are asked to explain why.

The state is essentially fishing for more information, as well as missing funds.

"We have income records, but we don't have any expense records," FTB spokeswoman Brenda Voet said of the information it obtains.

Last year's effort netted $31million, she said.

David Kline, spokesman for the California Taxpayers Association, said the organization did not know enough about the state's action to comment on it.

[e-mail]

818-713-3743