Notice reminders and updates October 2020 Tax News

We mentioned in previous articles that Notices of Tax Return Change - Revised Balance (FTB 5818-B) would start going out in August. These notices correct return errors and we mail them after we process all incoming returns and payments. As expected, these notices were delayed this year due to the postponed COVID-19 related filing due dates.

In addition to the COVID-19 delay, we encountered unexpected delays with mailing some notices, including Notices of Proposed Assessment. During the periods July 23, 2020 through July 31, 2020, and August 19, 2020 through August 28, 2020, certain notices experienced a 3-to-7-day mailing delay. Specific timeframes to respond or make a payment will be extended accordingly for these notices.

Here are some important timeframes to keep in mind:

  • To protest a Notice of Proposed Assessment: 60 days from the postmark date on the envelope.
  • To appeal a Notice of Action from a Notice of Proposed Assessment: 30 days from the postmark date on the envelope.
  • To appeal a Notice of Action denying a claim for refund: 90 days from the postmark date on the envelope.

Visit the Delayed Notice Public Service Bulletin on our website for more information.

Given the time-sensitive nature of our notices it is always a good idea to remind your clients to respond as soon as possible when FTB contacts them. Acting promptly may provide your clients with more options and ensure they are able to exercise all of their protest and appeal rights. Additionally, timely action helps avoid unnecessary collection activity, such as a lien or levy. If a balance is due, a payment arrangement can usually be made, which may reduce interest and penalties.

As always, if you have questions about a notice, you should call the number on the notice or the Tax Practitioner Hotline at (916) 845-7057.