Ask the Advocate July 2021 Tax News

Expect notices to go out soon

Brenda Voet, EA, Taxpayers' Rights Advocate.

Brenda Voet, EA
Taxpayers’ Rights Advocate
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Once we process all incoming returns and payments, notices will start going out for some returns. Given the time-sensitive nature of our notices, working through the normal channels with the program area identified on them, is the most efficient way to quickly resolve any issues. It is also the first step in the problem resolution process.

If your client disagrees with a notice, or we are requesting information, here are the normal channels to use for three of our most common notices.

Notice of Tax Return Change:

When we change or correct your client's tax return during processing, we send this notice to provide an explanation of the specific changes made. Common changes can include:

  • Withholding or payments don't match our records
  • Your client doesn't qualify for a tax credit
  • We applied the refund to a past tax debt

Specific codes are used to identify the reason(s) for these change and are provided with the notice. A search on our website for: notice of tax return change, will also provide a detailed description of the related codes, and information about what to do for each code. Some of our recommendations include:

  • Comparing the amounts reported on the return to the tax documents used to prepare the return, e.g., W-2s, proof of payment, and other tax related documents
  • Verifying math computations
  • Contacting our:
    • Filing Compliance Bureau at (916) 845-7088
    • Withholding Services and Compliance section (non-wage withholding) at (888) 792-4900
    • Customer Service line (800) 852-5711 for Head of Household information
  • Faxing supporting information, including a copy of the Notice of Tax Return Change to (916) 843-5443

Additional Documentation Required – Refund Pending:

For the California Earned Income Tax Credit (Cal EITC) and/or Young Child Tax Credit (YCTC), if we do not have enough information to approve the credit(s) claimed on your client's tax return, we will send this notice. The specific supporting documents needed are identified and listed on this notice and may be faxed or mailed to:

  • Fax - (916) 845-9351
  • Mail - Filing Compliance Bureau MS F151
    Franchise Tax Board
    PO Box 1468
    Sacramento CA 95812-1468

*Please include a copy of the, Additional Documentation Required – Refund Pending Notice, with your supporting information.

Notice of State Income Tax Due:

This notice is issued when your client has a past due balance on their personal income tax account, often caused when:

  • A penalty is assessed
  • A payment is dishonored, and/or
  • A return is filed, but a balance is due

For the tax year indicated, this notice provides the total account balance, a summary of the balance due, and a brief paragraph to explain why the taxpayer is receiving the notice.

If your client does not owe the balance stated, or if there are any questions concerning our collection process or procedures, please first contact us at (800) 689-4776.

Supporting information such as:

  • Any relevant tax documents used to prepare the return
  • Proof of payment (for example, cancelled check, transaction number, etc.)

May be mailed to:
Franchise Tax Board
PO Box 942840
Sacramento CA 94240-0040
*Please include a copy of the Notice of State Income Tax Due. If the documents provide enough proof, we’ll make corrections and contact your client.

If you are an authorized representative, you can save time and view your clients' notices in MyFTB and even upload supporting documents into your clients' MyFTB account.

Skipping the first step to resolve your clients' issues through the normal channels can actually slow down the resolution process. The TRAO team is often able to redirect your request to the different business areas within FTB, but we may be unable to accept your client's case for resolution unless it meets our Taxpayer Advocate criteria.