Your tax audit
A tax audit is a review of your tax return to verify that your income and deductions are accurate. Audits can originate from multiple sources, including the IRS.
We’ll contact you in writing if your return is under audit. Your letter may include the following:
- What tax year(s) and issue(s) we are reviewing
- Additional information we need you to provide
- How to contact us
Audit timeframes can vary based on complexity.
Visit Frequently asked Questions about your tax audit (FTB 1015B) for more information.
During an audit
We’ll work with you to:
- Schedule appointments
- Review deadlines
- Go over documents you have provided to support your position
- Give you a chance to respond to our position prior to closing the audit
We may send you one or more Information Document Requests (IDRs) to gather facts, understand, and verify the items you reported on your tax return.
After the audit
We will notify you of the results of the audit in writing.
You may receive one or more of the following:
- No Change letter that states we accepted your tax return as filed and you do not owe additional tax
- Notice of Proposed Assessment that proposes the additional tax and/or penalties based on the audit results
- Notice of Proposed Overassessment or a Computation of Proposed Overpayment
- Notice of Overassessment, Credit, or Refund
- Notice of Proposed Adjusted Carryover Amount that proposes reduction of a carryover item which did not result in any additional tax for the tax year examined
- A letter that indicates we have fully or partially denied your claim for refund
If you owe additional tax and/or penalties, you will also owe interest. Interest accrues from the original due date of the tax return until the date we receive payment in full.
If applicable, you’ll have an opportunity to protest or appeal if you disagree with a tax decision.
Statute of limitations (SOL)
SOL is a time limit imposed by law on us to issue our assessment for additional taxes, penalties, and/or fees.
Generally, we have 4 years from the date you filed your return to issue our assessment. However, if you:
- Filed your return before the original due date, we have 4 years from the original due date to issue our assessment.
- Did not file a return for the tax year, we can issue our assessment at any time.
You have federal adjustments
R&TC 18622 requires you to notify us within 6 months of a federal adjustment .
- If you notify us within 6 months, we have 2 years from the date you notified us to issue our assessment.
- If you notify us after 6 months, we have 4 years to issue our assessment.
- If you do not notify us, we can issue an assessment at any time.