MyFTB Corner March 2018 Tax News
Help ensure your Tax Information Authorization and Power of Attorney Declarations are accepted
On January 2, 2018 we started accepting the new Tax Information Authorization (TIA), FTB 3534, and Power of Attorney (POA) declaration FTB 3520 PIT and FTB 3520 BE forms. We are pleased to share that we are processing these forms within 25 business days as planned (this includes the 10 business day hold to notify the taxpayer). The only exception is for those that fall-out for manual intervention.
To help ensure your forms are accepted, we are sharing common rejection reasons we are currently seeing and the related solutions.
Common Rejection Reasons and Solutions:
Tax Information Authorization - FTB 3534 / Instructions
- TIA filed for a deceased taxpayer.
Solution: The following items must be completed:
- Don’t submit TIA renewals for deceased taxpayers.
- The fiduciary must file an FTB 3534 to authorize a representative to receive confidential tax information on behalf of the estate or trust, the fiduciary must file an FTB 3534 (The fiduciary fills out Part 1 of the form as the taxpayer, not as the representative).
- The Federal Employer Information Number (FEIN) must be included unless the authorization is for a grantor trust and the IRS didn’t provide a FEIN, then provide the individual’s SSN.
- The fiduciary must sign, date, and enter their title.
- Include either a certificate of trustee (as provided by Probate Code Section 15603), court order, governing instrument, or Last Will and Testament. Otherwise, if an Internal Revenue Service (IRS) Form 56, Notice Concerning Fiduciary Relationship is required to be filed with the IRS, attach a copy to FTB 3534.
- Representative information is missing on the form.
Solution: Ensure the FTB 3534 includes all representative information, including the individual’s name, address, and professional number, if applicable.
- Taxpayer identification number is missing on the form.
Solution: Ensure the individual taxpayer’s social security number (SSN) or individual tax identification number (ITIN) is on the form.
- TIA was submitted using the POA wizard in MyFTB.
Solution: Don't submit a TIA form, FTB 3534, in MyFTB.
To establish a TIA client in MyFTB, use Add TIA Client. See Add a Client to MyFTB for instructions. When adding a TIA client online, there is no form to upload in MyFTB and do not mail FTB 3534 to us.
Power of Attorney Declaration – FTB 3520 PIT / Instructions and FTB 3520 BE / Instructions
- The incorrect POA declaration form is filed.
Solution: MyFTB or Mail: Use only the new forms, FTB 3520 PIT and FTB 3520 BE (including declarations uploaded into MyFTB). All other forms will be rejected, with the exception of military durable declarations.
- Additional representatives listed on page 3 of FTB 3520 PIT and FTB 3520 BE are not keyed on MyFTB.
Solution: Key all representatives listed on page 3 of the declaration form in MyFTB.
To save time, you can also create an Associates List in MyFTB for representatives you commonly use on declarations. You can then select representatives from your Associates List when adding your POA declaration in MyFTB. For additional information, see the January 2018 Tax News article, Create Your Associates List to Submit a POA on MyFTB and How To Manage My Associates List.
- Taxpayer or representative information is missing on the form.
Solution: Ensure the individual taxpayer’s social security number (SSN) or individual tax identification number (ITIN) is on the form. Additionally, the form must include all representative information, including the individual’s name, address and professional number, if applicable.
- Multiple taxpayer POA declarations are being uploaded into one taxpayer’s account on MyFTB.
Solution: Upload only the POA declaration for the client entered on MyFTB. For more information on how to submit a POA declaration on MyFTB see, Submit Form 3520 PIT or 3520 BE, Power of Attorney.
For more information on POA and TIA forms, go to ftb.ca.gov and search for poa or tia.